ClaimCompass, a Sofia, Bulgaria passenger rights provider in Europe, which helps travelers get compensated in cases of flight disruptions, completed the acquisition of Service, a provider of a travel app, based out of Los Angeles, which has brought flight compensation to the US market.
The amount of the deal was not disclosed.
The acquisition, which has been in the works since early March of this year, allows ClaimCompass to expand beyond the EU and provide coverage for US and Canadian flights, as well as advance its product roadmap.
Service provides an app that leverages paarsing technology and a simple inbox connection to instantly find past and future flights and secure money owed to passengers for flight disruptions and hotel rate changes. It works by connecting to an inbox and finding any previous flights for which a traveler may be entitled to receive compensation in the form of cash, vouchers or miles, following a disruption such as a long delay, cancellation or overbooking. In addition, it also proactively monitors any upcoming flights, as well as hotel reservations and automatically saves travelers money if the rate drops by rebooking the exact room for the cheaper rate.
Founded in 2015, the company raised just under $8M from investors such as Founders Fund, Maveron, Menlo Ventures and more, valuing the company at approximately $20M. In 2018, Service acquired the Israely company Hotel Rate PRO, which allowed them to offer the hotel product. Towards the end of 2019, Service was in the middle of a fundraising round, which collapsed due to the Covid19 outbreak, making the company seek an acquisition.
Led by Tanya Mitkova, founder and CEO, ClaimCompass has served over 200,000 travelers claim and receive compensation under EU Regulation 261/2004. The company was founded in 2015 and is backed by investors such as 500 Startups, Social Capital, Rambleside Ventures, Hustle Fund, Good News Ventures, and more.