Aussie tech company Collaborate Corporation (ASX: CL8) has secured a key partner to launch Carly, their car subscription service, in New Zealand and continues to bring disruption to traditional means of car ownership.
The 6-month partnership with Turners Automotive Group (ASX:TRA; NZX:TRA), New Zealand’s largest car retailer, will see Turners commit 200 vehicles for access via the Carly app where users can purchase a subscription. Upon subscription, users can hire cars from other nearby Carly users who have a car available enabling subscribers to hire different cars depending on their intended use.
“Turners is the largest seller of cars in New Zealand and in an ideal position to meet the needs of customers who prefer access over ownership,” said Collaborate CEO, Chris Noone.
“Turners has an unequalled marketing capability and network of industry partnerships that will provide Carly with an excellent opportunity to grow rapidly in New Zealand. We are privileged to be working with such a skilled and well-connected management team.”
The agreement follows a commitment from Turners who have been undergoing a corporate restructure with the view of divesting non-core business assets with the aim of focusing on the automotive industry only. In doing so, Turners have made a $1 million investment in Collaborate where key business synergies between the two companies is now in full view.
“We are excited about the partnership with Carly as we position Turners for the long term projected changes in the traditional retail car market,” said Turners CEO, Todd Hunter.
“New concepts such as vehicle subscription and car sharing are a part of the future and provide a new revenue opportunity for car dealers and other industry players. We really like the industry inclusive approach Carly has taken in Australia which we will mirror in New Zealand.”
Shares in CL8 remained unmoved in early morning trade, steady at $0.015 per share but have made strong progress since their 52-week low of $0.007 just five month ago in September 2019.
Beyond Carly.co, Collaborate also operates online platforms DriveMyCar.com.au which allows users to rent out their personal vehicles to other drivers, MyCaravan.com.au and Mobilise.com.au.
Alfred Chan is a Business Reporter at The Sentiment specialising in ASX-listed small cap companies, a bloodstock enthusiast and former equities analyst.
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