For quite some time, Collaborate Corporation Limited (ASX:CL8) has been creating new ways to provide convenient access to vehicles in the rapidly changing automotive and mobility markets in Australia.
The company’s core business is DriveMyCar (www.drivemycar.com.au) - Australia’s largest peer-to-peer car rental platform which allows car owners to rent their cars to other people. Through its recently launched car subscription offering, Carly (www.Carly.co) , Collaborate is currently leading Car subscription revolution in Australia.
Launch of Carly in New Zealand
After successfully launching its vehicle subscription platform in Sydney and Melbourne, Collaborate is now preparing to launch Carly in New Zealand as well. In an update provided on Thursday, 12 September 2019, the company confirmed that it has secured key registrations to facilitate the launch of Carly in New Zealand.
The company has already acquired internet domain ‘www.carly.co.nz’ and has activated a ‘Coming Soon’ page to engage prospective customers in advance of the launch. Besides this, the New Zealand Intellectual Property Office has accepted the Trade Mark filing for ‘Carly’ in classes in 9, 39 and 42.
Previously, on 2nd July 2019, the company had announced that Turners Automotive Group Limited, the largest seller of cars in New Zealand, and Collaborate have agreed an exclusivity period to negotiate the launch of Carly in New Zealand. Collaborate had also raised $1 million through a placement to Turner. The launch workshops and Site visits have been conducted in New Zealand and discussions with Turners are progressing well.
Launch of Carly in New Zealand will allow Collaborate to:
Carly Platform Overview
Carly is an end-to-end technical platform which provides consumers a more flexible way to access the vehicles with no long-term commitments, with a range of new and used vehicles including maintenance, registration and insurance, all packaged into a single monthly payment.
- Carly manages upload of vehicle images and specifications.
- Customers can view vehicles and subscribe entirely online on mobile, desktop or in a dealership.
- Utilising key channels – search, display, Facebook, Instagram, re-targeting, radio and partnerships.
- Carly team processes all subscriptions and provides customer service before, during and after commencement.
- Carly performs ID verification and credit checks to mitigate risk of fraud and payment issues.
- Carly collects all payments from subscribers and remits funds to vehicle owners.
- Carly platform provides full subscriber, vehicle and financial reporting.
- On 29 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;
- On 7 May 2019, Collaborate launched Carly in Melbourne;
- On 11 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 13 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 14 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 19 June 2019, Suttons Motors Pty Ltd, one of the largest motor vehicle dealerships in NSW, signed an agreement to supply vehicles for subscription via the Carly vehicle subscription platform and for rental demand via DriveMyCar;
- On 2nd July 2019, Collaborate announced that it has raised $1 million via a placement to a strategic investor, Turners Automotive Group Limited;
- By the end of FY19, Collaborate had established itself as a leader in the car subscription market in Australia.
Car Subscription Opportunity
Due to the major global trends as well as the shift in consumer behavior, the automotive industry is currently going through enormous change. The consumer’s shift from vehicle ownership to vehicle access has given birth to Car subscription opportunity.
Major Changes Happening in Automotive sales industry
The shift from ownership to access - Currently, a generation shift is happening where younger generations are considering car ownership as a burden which is, why they are preferring access to a car over ownership;
The rise of subscription services- From mobile phones to movies and even food, subscription services are an effective way to access a range of products, including cars;
Automotive industry disruption - New car sales are declining; dealer profit margins are being squeezed, and customers are being refused credit;
The uptake of multiple mobility solutions - Drivers are seeking multiple mobility solutions to match their lifestyle and particular needs which can differ hourly, daily and monthly;
Car subscription represents a seismic shift for the automotive industry that provides an exciting new online, recurring sales channel. With a proven technology platform, established automotive industry partnerships, and significant operating experience, Collaborate seems to be well-positioned to address the rapidly emerging car subscription opportunity.
Collaborate is best placed to leverage the opportunity:
- Experience in delivering thousands of long term, flexible vehicle rental transactions.
- Key relationships in place with automotive dealers, leasing companies, manufacturers and service providers.
- Strong technology platform to rapidly scale operations.
Collaborate is planning for collaborations/agreements with key partners with regards to the demand for and supply of assets for its online marketplaces, including DriveMyCar and Carly.
On 13 September CL8’s stock is trading at a price of $0.007 with a market capitalisation of $6.91 million.
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