A Ride Along With the Only Rideshare Company Treating Its Drivers As Employees

Decerry Donato

Decerry Donato is a reporter at dot.LA. Prior to that, she was an editorial fellow at the company. Decerry received her bachelor's degree in literary journalism from the University of California, Irvine. She continues to write stories to inform the community about issues or events that take place in the L.A. area. On the weekends, she can be found hiking in the Angeles National forest or sifting through racks at your local thrift store.

A Ride Along With the Only Rideshare Company Treating Its Drivers As Employees
Courtesy of Alto

Since dot.LA covered its launch two years ago, Santa Monica-based rideshare company Alto has hired 300 staff members to join its growing team of drivers. But unlike its competitors, Alto classifies every driver as a W-2 employee.

“They're not gig economy workers that show up whenever they feel,” general manager Sevag Konialian tells dot.LA, “they have hours that correlate with the schedule they signed up with.”

Applicants that are interested in joining the Alto family, as Konialian puts it, must fill out a form online with their desired schedule. Once the application is complete, an Alto member reaches out to the applicant for a remote interview. After the interview, the potential driver will receive a driver training course list that they must complete.


Konialian says the course load is robust because, “it includes what your expectations are, what the app navigation looks like and what the culture is all about which is all getting embedded before you show up here (Alto headquarters), so we're not starting from zero in person.”

Because Alto drivers are classified as employees of the company, they have access to a 401k, guaranteed hourly pay, company sponsored health benefits, professional training and dispatch support and opportunities for advancement within the company.

The startup dubs itself as the “safer” ride sharing option, so last week, I took a ride in one of Alto’s SUV’s to Santa Monica pier for a test run to understand how it all works.

How Alto Works

Service agents getting ready to clean Alto cars before they head out for the day. Photographed by Decerry Donato

As I was waiting at the Alto depot, there was a line of pearly white SUV’s parked ready to be wiped and disinfected by the company’s service agents (this is what Alto calls their cleaning crew). Service agents clean all Alto vehicles before and after every shift, but drivers will clean the car between every ride to ensure each passenger has the same clean vehicle as the previous person.

Similar to other apps, you must enter your credit card information to set up a ride and while Alto is a membership-based ride hail service, the company allows non-members to request rides, like myself.

Alto’s annual membership costs $99, but those who don’t want to commit to a full year can pay a monthly fee of $12.95. Being a member allows passengers to save 30% on every ride and unlocks priority booking during peak hours.

Members also have access to exclusive offers with Alto’s partners including a 50% off membership with Soho Friends, $250 in booking credit with Wander, $30 off your purchase with Mizzen + Main and many more.

Once your ride is confirmed, the app will provide you with a bio of the driver, along with the license plate of the car.

Within ten minutes, my ride came and the driver, Chauncey Dennis, opened the car door and welcomed me in. He asked if he could take any of my bags to the trunk and I was shocked at this gesture because the hospitality I received was drastically different compared to other ride services I’ve experienced.

Alto car waiting for the driver. Photographed by Decerry Donato

The Ride

Similar to other ridesharing apps, Alto gives the passenger the option to select a do not disturb button. If the passenger has it on, it notifies the driver that you want a conversation-free ride. But if the feature is turned off, you can expect to learn a little more about your driver.

My fare to Santa Monica cost $24 and Konialian confirms that Alto rides are 30-40% cheaper than other luxury ride hail options.

“In a five day work week, I’ll get at least 75% repeat customers.” Dennis says who has been driving for Alto for a little over a year now.

“As a driver, I observe first time riders and see how shocked they are with what they're getting,” Dennis says.

Some of the comments he receives include everything from how safe it feels to ride with Alto to the cleanliness of the cars.

During the car ride, I learned that I could control the temperature and music and volume from the app. The app currently has a set of eight different vibes you can select from which are Latin, Yeehaw, Reverie, Quest, Fizz, Liftoff, Sanctuary and Void. Each vibe is associated with a genre of music or selection of sounds you can enjoy during the ride. I chose Reverie and the songs that were playing had a lo-fi feel to them and still allowed me to talk to my driver.

An inside look of an Alto vehicle. Courtesy of Alto

The Safety Factor

Aside from the plexiglass barriers and air filters that are installed in each Alto car, the company also equips each vehicle with a cloud based camera that allows management to monitor the drivers when they are out in the field.

Konialian adds that, “it helps us keep a more accountable system of our drivers and make sure that they are at the top level of safety and the footage can be used in liability cases when it comes to any sort of accidents that occur.”

In the case of a flat tire or a battery issue on the road, the driver must contact dispatch where they will relay the message to Alto’s fleet coordinator, Wayne Gretzky (not the hockey player) or the driver lead on duty. Then Alto will get a fleet roadside assistance to go out and pick up the vehicle.

When Alto first came to Los Angeles, consumers that had access to the ride hailing service were from cities including Santa Monica, Venice, Marina del Rey and West Hollywood. Now, the startup has expanded its services into the Valley, Studio City, North Hollywood Arts District, Sherman Oaks and Van Nuys.

Next year, the ride-hailing service will add 600 more vehicles to its fleet that will be divided across its six markets: Los Angeles, San Francisco, Dallas, Houston, Washington DC and Miami.

Netflix Doubles Down on LA

🔦 Spotlight

Hey Los Angeles.

Goodbye Coachella, hello Stagecoach. The desert doesn’t stay quiet for long, and neither does LA’s entertainment machine.

This week, that momentum showed up in a more permanent way.

Netflix is expanding its footprint in Los Angeles with a major move to take over and invest in Radford Studio Center, a historic production lot in Studio City. The company is planning a long-term transformation of the site, with upgrades to soundstages, production offices, and infrastructure designed to support the next generation of film and television production.

It’s a notable shift in a moment when production has been under pressure in California, with studios increasingly looking outside the state for cost advantages. Netflix going deeper in LA, and specifically into a legacy studio lot, signals a different kind of commitment. Not just to content, but to where that content actually gets made.

And it comes at a time when the streaming wars have matured. Growth is harder, budgets are tighter, and the focus has shifted from scale at all costs to efficiency and control. Owning or operating more of the production environment gives Netflix tighter control over timelines, costs, and output.

For Los Angeles, it’s a reminder of what still anchors the city. Even as AI, defense tech, and infrastructure startups continue to rise, entertainment remains one of the few industries where LA isn’t just competitive, it’s foundational.

Different headlines each week, but a consistent theme underneath them. Whether it’s power, autonomy, or content, the companies that matter are investing in the layers they don’t want to outsource.

And in this case, that layer is Hollywood itself.

Below are this week’s venture deals, fund announcements, and acquisitions across LA 👇


🤝 Venture Deals

    LA Venture Funds

    • UP Partners and Calm Ventures participated in Reliable Robotics’ $160M funding round, backing the autonomous aviation company as it advances pilotless flight technology for cargo and passenger aircraft. The round included a mix of new and existing investors, and the company plans to use the capital to accelerate certification efforts and expand deployment of its autonomous systems across commercial aviation. - learn more
    • Blue Heron Ventures participated in Tava Health’s $40M Series C, backing the company as it expands its tech-enabled mental health platform into a more integrated, full-stack system for providers, employers, and health plans. The round was led by Centana Growth Partners with participation from existing investors, and the company plans to use the funding to roll out new AI-powered tools and broaden access to care while reducing administrative friction across the system. - learn more
    • Vamos Ventures participated in Zócalo Health’s $15M Series A, backing the company as it scales its tech-enabled, community-based primary care model focused on high-need and underserved populations. The round was led by .406 Ventures with participation from existing and new investors, and the company plans to use the funding to expand its clinics and deepen partnerships with Medicaid programs as demand for accessible care grows. - learn more

    LA Exits
    • Studio71 has been acquired by Fixated as part of a broader deal in which German media company ProSiebenSat.1 sold its North American creator business, giving Fixated a large-scale network of creators and podcast operations and significantly expanding its footprint as it continues an aggressive roll-up strategy in the creator economy. The move signals continued consolidation in the space, with Fixated building a more vertically integrated platform across talent management, content production, and distribution. - learn more
    • Bonsai Health has been acquired by ModMed, bringing its AI-powered patient engagement platform into a broader healthcare software ecosystem. The deal is aimed at integrating Bonsai’s “agentic AI” capabilities into ModMed’s platform to automate patient outreach, fill care gaps, and improve scheduling across a network of nearly 50,000 providers. - learn more

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      A $26M Push Into Power in LA

      🔦 Spotlight

      Hello, Los Angeles.

      Coachella Weekend 2 is here, which usually means LA is either heading back to the desert or happily staying put this time around. Back in the city, the focus this week is less about music infrastructure and more about something far more critical, power.

      That’s where this week’s news comes in.

      Critical Loop, a Los Angeles-based energy startup, raised a $26 million Series A to tackle one of the least talked about bottlenecks in tech right now, grid interconnection. In simple terms, it’s the process of getting power to where it’s needed, and increasingly, that process is too slow to keep up.

      Critical Loop is building modular microgrid systems that can be deployed in days instead of years, giving industrial operators, data centers, and other energy-heavy users faster access to power without waiting on traditional grid upgrades. The round was led by Conifer Infrastructure Partners and Hanover, with participation from Better Ventures, Climate Capital, Adapt Nation Capital, and Cyrus Ventures.

      The timing here matters. Between AI infrastructure demands, electrification, and a broader push toward domestic energy resilience, power is quickly becoming a gating factor for growth. You can build the data center, the factory, or the next big thing, but none of it works if you can’t turn it on.

      That’s what makes companies like Critical Loop worth watching. They’re not building the flashiest part of the stack, but they’re solving for the piece everything else depends on.

      And in a city that knows a thing or two about scaling ambition quickly, that might be the most important layer of all.

      Below are this week’s fund announcements across LA 👇


      🤝 Venture Deals

      LA Venture Funds

      • Anthos Capital participated in Wealth.com’s $65M Series B, backing the AI-powered estate and tax planning platform as it scales across financial institutions. The oversubscribed round included new investors like Titanium Ventures and Pruven Capital alongside existing backers, and the company plans to use the funding to expand product development, pursue acquisitions, and grow its enterprise footprint as demand rises for AI-driven wealth management solutions. - learn more
      • Anamika Ventures participated in Sage Haven’s $3M pre-seed round, backing the AI-powered messaging and calling app designed to create a safer communication environment for kids. The round was led by Anamika Ventures alongside Fabric Ventures and a group of early-stage investors, as the company launches a platform focused on preventing cyberbullying through real-time AI moderation and parent oversight tools. - learn more
      • MANTIS Venture Capital participated in Factory’s $150M Series C, backing the AI startup as it builds autonomous software engineering systems for enterprise teams. The round was led by Khosla Ventures and included firms like Sequoia Capital, Blackstone, Insight Partners, and NEA, valuing the company at $1.5 billion. Factory plans to use the funding to invest further in product development and global expansion as demand grows for AI-driven tools that can automate large portions of the software development process. - learn more
      • Rebel Fund participated in Uplane’s $4.5M seed round, backing the AI startup as it looks to replace traditional marketing agencies with a platform that automates ad creation, testing, and budget optimization. The round was led by Play Ventures with participation from Y Combinator, 20VC, and Multimodal Ventures, and the company says its technology can improve return on ad spend by automating performance marketing workflows. - learn more
      • Alexandria Venture Investments and Presight Capital participated in Alloy Therapeutics’ $40M Series E, backing the biotech infrastructure company as it scales its AI-powered platform for drug discovery and development. The round included a mix of new investors like 8VC and JIC Venture Growth Investments alongside returning backers, valuing the company at $1 billion and underscoring continued interest in platforms that combine AI, data, and lab services across the biopharma lifecycle. - learn more
      • Finality Capital Partners participated in HYFIX’s $15M seed round, backing the semiconductor startup as it builds American-made chips designed to power drones and autonomous robots. The round was led by Craft Ventures with participation from Catapult Ventures, Multicoin Capital, and Sky Dayton, and the company is developing an integrated system-on-a-chip to replace fragmented hardware stacks and reduce reliance on foreign components. - learn more
      • Rainfall Ventures participated in Stendr’s $5.4M pre-seed round, backing the Norwegian defense tech startup as it builds an AI-native platform for drone detection and counter-drone operations. The round was co-led by Rainfall alongside ACME Capital and Skyfall, with additional participation from Antler, StartupLab, and other early-stage investors, and the company plans to use the funding to accelerate development of its multi-sensor technology and expand engineering capabilities. - learn more
      • Slauson & Co. participated in Slate Auto’s $650M funding round, backing the EV startup as it works to bring a lower-cost electric pickup truck to market. The round was led by TWG Global and comes as the Bezos-backed company prepares to begin production, targeting a more affordable segment of the EV market with a customizable truck expected to launch later this year. - learn more
      • Navitas Capital co-led Primepoint’s $10M seed round, backing the AI startup as it builds a platform that reads and connects complex construction drawings to streamline project workflows. The round also included investors like Penny Jar Capital, NextView Ventures, GS Futures, and Aglaé Ventures, and the company plans to use the funding to expand its platform and grow adoption among large commercial contractors. - learn more
      • Alexandria Venture Investments participated in Neomorph’s $100M Series B, backing the biotech company as it advances its molecular glue degrader platform targeting previously undruggable diseases. The round was led by Deerfield Management with participation from Regeneron Ventures, Longwood Fund, and Binney Street Capital, and the company plans to use the funding to support ongoing clinical trials and expand its broader drug development pipeline. - learn more

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      Hermeus Moves In. Uber Lines Up. LA Wins.

      🔦 Spotlight

      Hello, Los Angeles.

      This week’s transportation news says a lot about where LA is headed and who wants to build here.

      Start with Hermeus, which hit a $1 billion valuation after raising $350 million as it works on high-speed aircraft for defense applications. More notably for Los Angeles, the company is moving its headquarters to El Segundo, adding to the region’s growing aerospace and defense cluster. The round was led by Khosla Ventures, with participation from returning backers including Canaan Partners, Founders Fund, RTX Ventures, Bling Capital, and In-Q-Tel, along with new investors including Cox Enterprises, Socium Ventures, Destiny Tech100, Georgia Tech Foundation, 137 Ventures, and GSBackers.

      Then there’s Uber, which made two separate autonomous vehicle announcements that both put Los Angeles in the rollout map.

      The first is a partnership with Zoox, Amazon’s autonomous vehicle company. Uber said the service is expected to launch in Las Vegas in summer 2026 and then come to Los Angeles by mid-2027, giving riders the option to match with a Zoox robotaxi through the Uber app.

      The second is a new deal with MOIA America, which plans to deploy autonomous ID. Buzz vehicles on the Uber platform in Los Angeles by the end of 2026.

      Taken together, the message is pretty straightforward: LA is not just watching the future of transportation take shape, it is increasingly being used as the place to test it, scale it, and sell it. Hermeus is bringing its headquarters here as defense aviation regains momentum. Uber is lining up autonomous partners with Los Angeles as a target market. Different companies, different timelines, same conclusion: a meaningful share of the next transportation cycle is being built with LA in mind.

      Below are this week’s venture deals, fund announcements, and acquisitions across LA.


      🤝 Venture Deals

      LA Companies
      • PeakMetrics raised a $6M Series A to scale its AI-powered narrative intelligence platform, which helps organizations track how information spreads online and identify risks from misinformation and coordinated campaigns. The round was led by Moneta Ventures with participation from Techstars, Parameter Ventures, VITALIZE Venture Capital, and Gurtin Ventures, and the company plans to use the funding to enhance its real-time detection capabilities and expand adoption across enterprise and government customers. - learn more
      • Hybron raised a $25M seed round to scale its advanced carbon fiber composite manufacturing technology, which aims to produce high-performance components faster and at lower cost than traditional methods. The round was led by Marque Ventures with participation from a mix of venture firms and strategic investors, and the company plans to use the funding to expand manufacturing capacity, grow its team, and support increasing demand from aerospace and defense programs. - learn more

      LA Venture Funds

      • Emmeline Ventures participated in Osteoboost’s $8M funding round, backing the company as it expands access to its FDA-cleared wearable designed to treat low bone density in postmenopausal women. The round was led by Ambit Health Ventures with participation from Disrupt Health Impact Fund and others, and the company plans to use the capital to scale manufacturing, expand clinical research, and grow commercial adoption. - learn more
      • Bonfire Ventures led Juno’s $12M seed round, backing the AI-powered tax preparation platform as it aims to automate up to 90% of the manual work in tax filing for accounting firms. The round included participation from Impression Ventures and Xfund, and the company says its software can significantly reduce preparation time while keeping CPAs in the loop for review and advisory work. - learn more
      • Alexandria Venture Investments participated in Sidewinder Therapeutics’ $137M Series B, which will help fund the company’s push to bring its precision bispecific ADC cancer programs into the clinic. The round was co-led by Frazier Life Sciences and Novartis Venture Fund, and Sidewinder said it expects to advance its lead program into clinical development in 2027. - learn more
      • Slauson & Co. participated in Flora Fertility’s $5M seed round, backing the company as it builds what it describes as an individually owned fertility insurance platform that is not tied to an employer. The round was led by ManchesterStory, and Flora plans to use the funding to scale a model aimed at making fertility coverage more portable and accessible for consumers. - learn more
      • Mucker Capital participated in Fastrflow’s $375K early funding round, backing the startup as it builds a screen-aware AI copilot designed to assist students and professionals directly within their workflows. The company is focused on creating an assistant that can understand what’s on a user’s screen in real time to provide contextual help, positioning itself as a more integrated alternative to traditional standalone AI tools. - learn more

      LA Exits

      • Modern Animal has been acquired by Chewy, giving the pet e-commerce giant a much bigger physical veterinary footprint as it expands deeper into healthcare. The deal brings Chewy an additional 29 clinics, 24/7 virtual care, and a membership-based model, and is expected to grow Chewy Vet Care from 18 to 47 locations nationwide while adding more than $125 million in annualized run-rate revenue. - learn more
      • Honk has been acquired by Frontenac, with the Los Angeles roadside assistance software company simultaneously completing an add-on acquisition of CurbsideSOS as part of the deal. The combination is meant to scale Honk’s platform for roadside assistance, towing, and accident management, with former Grubhub executives including Adam DeWitt, Matt Maloney, and Eric Ferguson joining the company to lead its next phase of growth. - learn more

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