Car subscription company Carly has inked a deal with listed automotive company Turners Automotive Group (ASX: TRA) to launch the platform in New Zealand by March 2020.
The deal, between Carly's parent Collaborate (ASX: CL8) and Turners, will see the New Zealand company commit to supply 200 vehicles for their own stock within six months of launch in the region.
The agreement follows a $1 million strategic investment from Turners, New Zealand's largest seller of cars.
Collaborate says launch of www.Carly.co.nz is in line with Turner's strategy to invest in opportunities adjacent to its core automotive business.
"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," says 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."
Turners' investment and strategic partnership follows a $2.2 million investment received by Carly from fleet management provider SG Fleet in November 2019.
SG Fleet has committed to supply Carly with an initial 100 vehicles and additional cars to follow for meeting any increased demand.
Carly and SG Fleet will work together to accelerate the growth of Carly's car subscription demand channels while leveraging SG Fleet's significant experience and relationships in the business and government markets.
The rise of car subscription services has been slow but is gaining traction. It has been estimated that vehicle subscription programmes could amount for nearly 10 per cent of all new vehicle sales in the US and Europe by 2025.
Business News Australia
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