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Suncorp has taken a strategic stake in car-sharing platform Car Next Door in reaction to the evolving mobility sector.
The Queensland-based group will invest $1.5 million in the group as part of a $10 million funding round for the scale-up.
In addition to the investment, Suncorp will develop unique insurance products for the fast-growing sharing economy and engage in joint promotional activity for Car Next Door.
Suncorp Insurance CEO Gary Dransfield says the investment is a great opportunity to build a partnership that will strengthen the future of the motor insurance.
"We know the traditional way Australians own and use cars is evolving, and this partnership will allow us to learn and better service our customers' needs," says Dransfield.
"As Australia's largest motor and CTP insurer, we can support Car Next Door's members with insurance, and we can also introduce our customers to a new way to safely and easily rent out their cars in their own neighbourhoods."
"In support of future mobility needs we've already updated our current comprehensive car insurance products across AAMI, Suncorp and GIO to allow our customers to opt-in to coverage when they use their vehicles for ridesharing. Our customers can currently use their cars on platforms like Car Next Door, with insurance provided by the platform when it is rented out."
Suncorp joins a strong stable of investors in Car Next Door like Hyundai which has invested $8.2 million in the group to date and Shark Tank "shark" and technology entrepreneur Steve Baxter.
Suncorp's investment in Car Next Door follows a similar investment made into competitor Carly.
The Carly subscription service last week signed an agreement with SG Fleet worth $2.2 million in investment plus 100 vehicles and additional cars to follow to meet 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.
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