Collaborate Corporation Limited (ASX: CL8), a company from the retail industry group that is engaged into monetizing under-utilized assets through the operation of peer-to-peer marketplaces, announced that it had added 65 vehicles to the DriveMyCar fleet in March 2019. It represents 20% growth in the corporate fleet size within a month. The company had sourced these vehicles through the larger corporate fleets.
The vehicles will be used in DriveMyCar private rentals, rideshare rentals and Carly vehicle subscriptions which are going to launch in March 2019. The vehicles are well-priced and are well suitable for the shared ride to meet the strong demand being currently experienced. The already existing vehicles are fully utilized in many locations for the shared trip.
In 2018 and 2019, the vehicles included Hyundai Accent, Hyundai Tucson and Hyundai i30. In 2016, Land Rover Discovery models were also there. The current addition of 65 vehicles will be available in Sydney, Melbourne and Brisbane.
Chris Noone, who is the CEO of Collaborate Corporation Limited, stated that the addition of these vehicles is the largest addition of the used corporate vehicles. He also stated that with the attractive price point of these vehicles, they would become popular amongst the private rental, rideshare as well as the Carly subscription customers. These vehicles are high demand vehicles and have been made available as a result of high utilization of existing vehicles. This new fleet will also lead to material growth in revenues.
On 28 February 2019, Collaborate Corporation announced its half-yearly results, where the company declared revenue of $553,969 for 1H 2019, down by 4.7% as compared to the previous corresponding period. The company reported 7.4% dip in loss to $1,638,146.
During the period, the company rolled-out short-term rentals so that DriveMyCar competes in the short-term rental market. The period reported the launch of a pilot apartment car share programme in association with the prominent residential apartment developer and Hyecorp, a company associated with Hishenk (CL8’s major shareholder).
During the period, DriveMyCar in conjunction with Peugeot, launched its largest ever fleet of new vehicles which provided vehicles for private renters as well as Uber drivers. CL8 also entered into a supply agreement with Custom Fleet, Australia and New Zealand. In October 2018, LSH Auto entered into an agreement with CL8, for supplying vehicles to the DriveMyCar marketplace as well as the launch of premium vehicle rental service.
On 14 February 2019, Collaborate Corporation announced the appointment of the non-executive director, Mr Stephen Abolakian. He has extensive experience of business growth, partnerships and finance. Under his leadership, the company is looking forward to achieving significant growth potential.
On 30 January 2019, CL8 received R&D tax incentives worth $750,000 for 2018 regarding the activities related to research and development activities. These funds (22% higher than the previous year’s refund) will be used for CL8’s mobility solutions, meeting working capital requirements and Carly launch.
By the closure of the trading day on 4 March 2019, the closing price of the share was A$0.011. The company has a market capitalization of A$7.95 million and approximately 722.54 million outstanding shares.
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