On 29 March 2019, Collaborate Corporation Limited (ASX: CL8), a retailing company that is engaged in monetizing the under-utilized asset through the operation of peer-to-peer marketplaces announced the launch of Carly, which is Australia’s first truly flexible, and comprehensive car subscription product in Sydney. They also have plans to launch this in other cities as well. In Sydney, more than 130 vehicles from 13 brands featuring over 30 models are made available for subscription.
Carly allows the users to change the car with the change in their lifestyle. Carly allows the users to switch the car whenever they wish to, and the car will get delivered by Carly. The car can be changed as per the requirement that depends whether the user needs a hatchback during the week, sportscar for a weekend or a bigger car to suit the family size and needs. The car gets delivered by Carly directly to the subscriber’s location at the time convenient to the subscriber.
The subscribers of Carly can start, pause and stop their subscription as per their requirement. For those drivers and especially younger generations who look for flexibility, Carly provides the option where they can remove the long-term financial commitment required to buy or finance a vehicle. Thus, the subscribers can remove the need to lock into long-term debt. The whole process can be performed online and thus eliminates the need to visit multiple dealers, negotiate the price and complete endless forms. Also, the subscription starts at a very affordable price of $119 per week, making it suitable for a vast range of customers.
The company believes that the potential market size of Carly subscription is exceptionally large. In 2018, more than 870,000 new passenger and SUV vehicles were sold worth ~$30 billion. Apart from that, for the used car as well, there is a substantial market size potential. But it will require some time to transit customers from buying vehicles to utilizing vehicle subscription services.
Chris Noone, who is the Collaborate CEO is excited about Carly’s launch in the Australian market. He also highlighted that people are re-evaluating the advantages of making a long-term vehicle purchase commitment. It is also gaining traction amongst the automotive dealers who are looking for new ways to reverse the decline in vehicle sales. Carly has seen interest at the industry level as well. Thus, indicating that it might change the dynamics of the automotive industry in the short, medium and long term.
On 4 March 2019, the company added 65 new vehicles to the DriveMyCar Fleet.
On 22 January 2019, the company started the consumer pre-launch campaign for Carly.
In the last six months, the stock has given a negative return of 25%. However, in the previous one month, the stock has generated a return of 9.09%.
The stock closed the trading day at A$0.013 (As on 29 March 2019), up by 8.333% as compared to its previous trading day’s closing price. The company has a market capitalization of A$8.67 million with approximately 722.54 million outstanding shares.
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