Stop, Collaborate and listen: This car sharing service grew its fleet by 20% last month
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Collaborate Corporation (ASX: CL8) has had a busy month. It has added 65 vehicles to its fleet for its peer-to-peer car rental service DriveMyCar and vehicle subscription service Carly.
This represents a 20% increase to its fleet and, according to the company, a record increase.
The cars are predominantly 2018 and 2019 Hyundais including the Accent, Tucson and i30. They have also included 2016 Land Rover Discovery models.
The exact split between the two services was not made clear in this morning’s announcement but it is likely they could be transferred dependent on demand.
DriveMyCar claims to be “Australia’s first and largest peer-to-peer car rental service”, and 50% cheaper than traditional car rental. In addition to users with short-term vehicle needs, DriveMyCar also allows people to rent vehicles simply to drive for Uber.
Carly, which will launch this month, allows its users to utilise cars through a subscription model. Carly promises that ordered cars will be delivered directly to users and paid through a monthly all-in payment.
Don’t need that car any more or does it no longer suit your needs? No problem, it can be handed back or replaced.
Collaborate CEO Chris Noone declared: “This is the largest ever addition of used corporate vehicles to the fleet and their attractive price point will ensure they are popular with our private rental, rideshare and Carly subscription customers. These are high demand vehicles and have been made available because of high utilisation of existing vehicles.”
Noone predicted the latest fleet addition would be positive for the company, saying: “We look forward to repeat use of this fleet and strong utilisation growth in the future, which will generate a material growth in revenues.”
Collaborate also operates a caravan rental service, mycaravan, as well as heavy equipment rental service, Mobilise – which we previously deemed “a kind of Airbnb for heavy equipment”.
Its most recent quarterly showed modest growth in registrations (28%) and listings (33%). However its half-yearly, released on Thursday, showed $553,000 in revenue but a $1.6m loss.
As at 12.15pm, Collaborate shares were flat at 1.1 cents.