Collaborate Corporation Limited (ASX: CL8) has been creating new ways to access vehicles in the rapidly changing automotive and mobility markets in Australia.
The company’s businesses include:
- DriveMyCar, Australia’s leading peer-to-peer car rental business
- Carly - Australia’s first flexible car subscription offering
- Mobilise- Rental marketplace for under-utilised assets
- MyCaravan- Leading peer-to-peer caravan rental business
CL8’s Core Business – DriveMyCar
DriveMyCar is Australia’s first and largest peer-to-peer car rental operator which leverages the flexibility and scalability of the sharing economy model while delivering better value, wider choice and matching the key product features of most traditional and emerging competitors in the mobility sector.
DriveMyCar provides opportunities for owners of vehicles to generate income and for renters to access a wide range of vehicles at reasonable prices for multiple use cases.
DriveMyCar does not own or lease any vehicles and generates a higher margin than most online marketplaces owing to significant value addition including insurance, renter verification, marketing and payment processing.
Mobilise is a unique rental marketplace incorporating trust and verification, insurance for assets and payment processing, facilitating consumer and business transactions. Mobilise has been built on the latest version of the Collaborate Sharing Economy Platform incorporating API layer, AWS and Content Management System.
MyCaravan is Australia’s first true peer-to-peer caravan rental platform which provides an excellent proposition for investors to generate superior returns on investment via the comparatively high daily rental rates on offer.
In late March 2019, the company launched Australia’s first flexible and comprehensive car subscription product, Carly, which immediately gained significant interest from automotive manufacturers, dealers, media and consumers. Carly provides access to a range of new and used vehicles with a single monthly payment and no long-term commitments, while removing the long-term financial commitment required to buy or finance a vehicle.
Collaborate is a first mover in the Australian vehicle subscription market. As per the company, Carly’s subscription offering resonates with the Generation X, Y and Z demographics and places it at the convergence of rapidly increasing interest in mobility solutions, access vs ownership and subscription.
How Carly Works…
- Select a Car Online
- Carly performs ID & Credit Checks
- Carly delivers Car to Subscriber
- Pay simple Monthly Subscription
- Option to ‘Switch’ Car each month
- Option to ‘Pause’ Subscription
Carly leveraging the experience of DriveMyCar Business
Carly leverages DriveMyCar’s experience, platform and relationships to access a significant new demand channel in the $60 billion Australian automotive sales industry.
Below are various features of DriveMyCar that Carly is leveraging:
- Online marketplace with over 1,200 vehicles listed, over 600 active;
- Fully featured online platform – bookings, listings, ID verification, payments, reporting;
- Sales, fleet and customer service teams in place;
- 8 years’ experience in long term rental market;
- Wide range of existing private and corporate fleet supply partners – automotive dealers, manufacturers and leasing companies;
- Proprietary technology platform (.Net, AWS, React) and in-house development team;
- Experience in integrating with third-party systems and platforms.
The experience of delivering over 3000 long term rentals and continued evolution of the technology platform means that Carly can deliver more high-quality subscriptions. With proven technology platform, established automotive industry partnerships, and significant operating experience, Collaborate is well-positioned to address the rapidly emerging car subscription opportunity.
Carly’s Journey Since its Launch
- On 29th March 2019, Collaborate launched its first truly flexible and comprehensive car subscription product, Carly, in Sydney;
- Sydney Launch was supported by a significant marketing campaign which included PR, online advertising, search marketing, Instagram influencers, social media advertising and a radio campaign;
- Later on 7th May 2019, Collaborate launched Carly in Melbourne;
- On 11th June 2019, Carly and I-Motor announced that they will jointly develop the Car Subscription Solution that will enable a ‘subscribe’ option to be added to each vehicle listed on dealer websites and for customers to activate a car subscription to be facilitated by Carly;
- On 13th June 2019, JC Motors, an automotive dealer based in Bella Vista, New South Wales, confirmed the purchase of 40 new vehicles to assist with satisfying subscriber demand for vehicles from Carly, thereby increasing the total fleet size to 105 cars;
- On 14th June 2019, iungo Pty Ltd (www.iungo.com.au) signed a MOU to develop a product specifically targeted towards the car subscription and peer-to-peer car rental segments;
- On 19th June 2019, Suttons Motors Pty Ltd, a leading motor vehicle dealership in New South Wales (NSW), signed an agreement to supply vehicles for subscription for the Carly vehicle subscription platform and for rental demand of DriveMyCar;
- On 2nd July 2019, Collaborate announced that it has raised $1 million via a placement to a strategic investor, Turners Automotive Group Limited; Collaborate and Turners also agreed for an exclusivity period to negotiate the launch of a joint vehicle subscription service in New Zealand;
- By the end of FY19, Collaborate had established itself as a leader in the car subscription market in Australia.
- CL8 recently secured key registrations to facilitate the Carly’s launch in New Zealand.
CL8’ stock is trading at $0.009 with a market capitalisation of circa $8.89 million as on 20 September 2019.
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