Carly Holdings Limited (ASX:CL8) launched its car subscription business in March 2019, leveraging the existing DriveMyCar operations and technology. Car subscription allows business and retail customers to pay a single monthly fee to access a car for 30 days or more and is an alternative to purchasing or financing a vehicle. The average subscription period is 5.6 months. Carly has attracted larger automotive industry businesses as shareholders, with a model that adds value to all levels of the industry which facilitates sales volumes and delivers a new recurring revenue stream for automotive manufacturers and dealers. The company developed the model on similar lines to business launches in Europe and proved over the past three years that the business works in Australia. The impact of COVID-19 on supply chains over the past two years held the company back due to poor supply of vehicles from both corporate owners/suppliers (asset light approach) and manufacturers (asset purchased approach). Carly is now ramping up fleet size through vehicle purchases and leases while achieving fleet utilisation of 87.5%. Increased vehicle availability is expected to drive subscriber growth while the company maintains tight cost controls to drive gross margin or share of subscriber transaction values, up from the current 51% level.
07 Dec 2022
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Carly Holdings Limited (CL8:ASX) | 0 0 0.0%
- Published:
07 Dec 2022 -
Author:
Finola Burke | Scott Maddock -
Pages:
23
Carly Holdings Limited (ASX:CL8) launched its car subscription business in March 2019, leveraging the existing DriveMyCar operations and technology. Car subscription allows business and retail customers to pay a single monthly fee to access a car for 30 days or more and is an alternative to purchasing or financing a vehicle. The average subscription period is 5.6 months. Carly has attracted larger automotive industry businesses as shareholders, with a model that adds value to all levels of the industry which facilitates sales volumes and delivers a new recurring revenue stream for automotive manufacturers and dealers. The company developed the model on similar lines to business launches in Europe and proved over the past three years that the business works in Australia. The impact of COVID-19 on supply chains over the past two years held the company back due to poor supply of vehicles from both corporate owners/suppliers (asset light approach) and manufacturers (asset purchased approach). Carly is now ramping up fleet size through vehicle purchases and leases while achieving fleet utilisation of 87.5%. Increased vehicle availability is expected to drive subscriber growth while the company maintains tight cost controls to drive gross margin or share of subscriber transaction values, up from the current 51% level.