A new ride-sharing service, Digicab, is poised to revolutionize transportation in the Virgin Islands, according to its founder, Patrick Farrell. Speaking during an online presentation on Thursday, Farrell shared his vision for the app-based service, which aims to address long-standing transportation issues in the territory.

“I’ve been working on this for about a year and a half,” said Farrell. “It’s time for it to go out to the community.”

Digicab aims to fill a significant gap in the transportation market across St. Thomas, St. John, and St. Croix. Farrell, who operates a limousine company on St. Thomas, highlighted the commercial transportation challenges in the region, noting that while some areas are well-served, others face persistent issues.

The service will operate through a mobile application, similar to well-known ride-hailing platforms. With a focus on security, the platform will use services from ADP and Amazon Web Services to ensure the protection of sensitive financial information for both drivers and passengers.

Safety is another key feature of the Digicab app. Both drivers and passengers will have access to a direct 911 connection through the app, allowing for vehicle tracking and immediate emergency response if needed. “This button is one of the things that’s going to set us apart from other applications,” Farrell emphasized, noting the app’s emphasis on user safety.

Digicab also promises to bring transparency to ride pricing, addressing a common complaint about fluctuating fares despite standard tariffs. “With Digicab, pricing is displayed to both driver and passenger even before the ride is booked and confirmed,” Farrell explained.

Additionally, Digicab plans to serve underserved communities, providing transportation options to areas that traditional taxi services often avoid. Farrell mentioned Mariendal on St. Thomas as an example, where residents, including school children, face transportation challenges.

Before its public launch, Digicab needs to finalize insurance coverage for its drivers. Farrell is in discussions with a commercial entity to secure a suitable insurance product similar to what taxi drivers use.

The app will also offer the ability to book rides in advance and maintain high vehicle standards. After the first year, vehicles on the platform will be limited to those no older than seven years, with an inspection program for older vehicles.

During the presentation, Vernice Gumbs, Executive Director of the Taxicab Commission, inquired about the types of vehicles that will be included. Farrell responded that high-capacity vehicles, like safari jeeps or 15-seater buses, would not be financially viable on the platform. Instead, vehicles will be limited to seven passengers or fewer.

Farrell is confident that Digicab will benefit the territory’s transportation sector, though he acknowledges potential friction with existing taxi operators. “I know that it will be a fallout between Digicab and many taxi drivers,” he said, but pointed out that current taxi numbers are insufficient to meet the territory’s transportation demand.

The Virgin Islands Department of Justice recently completed the distribution of a substantial $638,553.16 settlement with Kmart Corporation, concluding a legal battle that began in 2017 over accusations of Medicaid overbilling by the retailer’s pharmacies. Acting Attorney General Ian S.A. Clement confirmed the resolution, which dates back to practices starting in the mid-2000s where Kmart allegedly failed to extend discounted drug prices to federal health care programs, in contrast to the lower rates offered to cash-paying customers.

This disparity emerged notably when Kmart charged Medicaid above their “usual and customary charge” for cash customers—for instance, billing Medicaid $5 for a prescription that cost cash customers just $4. Such discrepancies led to charges of submitting false claims to the government.

The origins of this legal action trace back to 2008 when James Garbe, a whistleblower and former Kmart pharmacist, initiated a lawsuit in the United States District Court for the Central District of California, which was later moved to the Southern District of Illinois. Garbe’s suit argued that Kmart’s failure to provide the lowest possible prices to federal healthcare programs breached the contractual requirements mandating pharmacies to charge no more than their most customary and minimal rates for medications.

This settlement is a part of a broader agreement that includes a total of $59 million to settle various federal and state healthcare claims against Kmart, covering wrongful billing practices from September 1, 2004, to December 31, 2014. The Virgin Islands Medicaid Fraud Control Unit, entirely supported by a grant from the United States Department of Health and Human Services – Office of the Inspector General, played a pivotal role in identifying the discrepancies and ensuring adherence to Medicaid billing protocols.

Backpack Healthcare, a trailblazing online pediatric mental health service, was founded by Hafeezah Muhammad, a visionary entrepreneur hailing from St. Thomas. The company recently celebrated a significant milestone by securing $14 million in Series A funding, spearheaded by PACE Healthcare Capital.

This innovative firm is renowned for its AI-powered application and teletherapy services, which offer vital support to children and adolescents dealing with mental health issues. Backpack Healthcare’s recent financial infusion underscores the urgent need for more inclusive and technologically advanced solutions within the U.S. healthcare framework, especially for the pediatric mental health sector.

Muhammad, commenting on the funding, highlighted its importance: “This investment marks a pivotal moment in addressing the pediatric mental health crisis with tech-enabled solutions that cater to a broader demographic.”

Currently, only 14% of mental health professionals accept Medicaid. Backpack Healthcare is set to change this landscape by ensuring its services are accessible through various insurance providers, including those that accept Medicaid. This initiative aims to make mental health support more attainable for underserved communities.

The newly acquired funds will be channeled into enhancing Backpack Healthcare’s technology. The company’s app intelligently tracks emotional patterns and connects users with therapists who devise personalized treatment plans. It also incorporates engaging tools and activities designed to make therapeutic interactions more appealing to young clients.

Plans are underway to extend the company’s services beyond its current operational bases in Maryland and Virginia, aiming to impact more communities.

Julia Monfrini Peev, Managing Partner at PACE Healthcare Capital, emphasized the dual benefit of their investment: “Supporting Backpack Healthcare is not merely about financial returns; it is fundamentally about fostering bright futures for millions of underserved children and strengthening the societal fabric for future generations.”

This financing achievement also distinguishes Muhammad as the first Virgin Islander to raise venture capital in this sector, marking a historic moment for the region’s representation in the global venture capital landscape.