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Collaborate Corporation Limited (ASX: CL8) works in the peer-to-peer rental market in Australia. The companyâs core business is DriveMyCar â Australiaâs largest peer-to-peer car rental platform which has strong prospects in the car rental market.
Today, the company has launched Australiaâs first flexible and comprehensive car subscription product, Carly, in Melbourne, providing a new sales channel for automotive dealers and manufacturers. As per the companyâs announcement, over 90 vehicles from 11 automotive manufacturers featuring over 30 models now available for subscription.
With the launch of Carly in Melbourne, the companyâ shares went up by 11.111% during the intraday trade as on 7 May 2019.
This product is a really exciting alternative to a loan or a lease as it provides access to a range of new and used vehicles into a single monthly payment with no long-term commitments, removing the long-term financial commitment required to buy or finance a vehicle. The company believes that Australians want a car without the burden of long-term ownership and finance commitments. With the roll out of this product the company is trying to solve the problems of declining sales and low profit margins which has impacted Car dealers and manufacturers.
This product is providing the flexibility that many drivers and especially younger generations are now seeking, contributing to the changing dynamics of the automotive industry in the short, medium and long
Earlier on 29 March 2019, the company had launched Carly in Sydney and gained strong interest from industry participants, demonstrating that there is a real desire for access to vehicles with no up-front costs.
Car subscription is a new category, however it is resonating well with mainstream consumers. There is no long term financial commitment in Car subscription category and moreover it allows the subscriber to choose a car and have it delivered next day. Subscription represents a seismic shift for the automotive industry that provides an exciting new online, recurring sales channel. Carly has been built for the automotive industry and recognises the financial challenges they face in shifting from the traditional sales model.
The companyâs site traffic is increasing 50% every week since launch, amplified by features on Channel Nineâs Today Show and Channel 7âs Sunrise.
The stock is trading at a price of $0.010, up by 11.111% during the dayâs trade with a market capitalisation of ~$6.5 billion as on 7 May 2019. The counter opened the day at $0.010 and reached the dayâs high of $0.010 and touched a dayâs low of $0.009 with a daily volume of ~ 1,270,500. The stock has provided a year till date return of -25% & also posted returns of -40%, -25% & -25% over the past six months, three & one-month period respectively. It had a 52-week high price of $0.025 and touched 52 weeks low of $0.009, with an average volume of ~584,449.
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