14 JANUARY 2020
Collaborate Corporation Limited (ASX:CL8) (Collaborate or the Company) is pleased to announce that Booran Dandenong Pty Ltd has signed an agreement for its dealerships to offer vehicles for subscription via Carly. In addition, the Booran dealerships will utilise the Car Subscription Solution developed by Carly and I-Motor that enables a ‘subscribe’ option to be added to vehicles listed on dealer websites, making it easy for customers to sign up online for a car subscription that is facilitated by Carly (www.Carly.co).
The Car Subscription Solution enables automotive dealers to seamlessly introduce a new revenue stream to their dealership and provide their customers with the opportunity to subscribe to a vehicle whilst viewing it on the dealer website. The Car Subscription Solution leverages web traffic already landing on the dealer website and therefore requires no additional marketing expenditure. Digital marketing is an area of great focus for automotive dealers, despite the challenges of converting web traffic into foot traffic in the dealership and eventually into the sale of a vehicle. The Car Subscription Solution helps solve these challenges by enabling the customer to complete the subscription process entirely online and by offering a lower commitment alternative to outright purchase of a vehicle, a loan or a long-term lease.
For Carly, the Car Subscription Solution accesses dealer-owned vehicles that can be monetised via car subscription, whilst also providing an integrated and low cost method of acquiring subscription customers via the dealer websites.
Booran Motor Group was established in 1965 and manages 14 dealerships, including Hyundai, Holden, Volkswagen and Kia, and employs over 350 people.
I-Motor currently manages over 700 websites on behalf of dealers, which display over 50,000 vehicles and attract over 50 million page impressions per month. I-Motor will offer the Car Subscription Solution to each of these dealers. Carly and I-Motor will jointly promote the Car Subscription Solution to existing Carly dealers and other automotive dealers in Australia.
Under the I-Motor agreement announced on 11 June 2019, I-Motor will develop the subscription functionality for the Booran Dandenong dealer websites, which will enable car subscriptions for dealer-owned vehicles to be completed via Carly. Upon the commencement of subscription revenue from each dealer, I-Motor will be paid a fee to maintain the subscription functionality on the dealer website and Carly will receive income from car subscriptions.
Carly generates revenues when vehicles are subscribed for via Carly, with a recent average revenue per month of $303 per subscribed vehicle, based on an average monthly subscription value of $863 per month (excluding GST). For more details, refer to Collaborate’s Investor Presentation released to the ASX on 2 July 2019.
The transition of consumer preferences from the purchase of vehicles to utilising vehicle subscription services is expected to take time and therefore, whilst the potential market size for the Carly subscription offering is extremely large, the business model is new and take-up by consumers and market penetration cannot be predicted accurately. It is therefore not possible to quantify the financial impact of this additional supply agreement on Collaborate in any given time frame. This latest agreement with Booran Dandenong follows recent signings of agreements with fleet managers, automotive manufacturers and dealers, including SG Fleet, Hyundai and Suttons Motor Group, and is further validation of the vital role that Carly plays in the rapidly evolving automotive industry.
Chris Noone, Collaborate CEO said “Once again, Carly is leading the development of the car subscription industry in Australia by combining key automotive industry partnerships with smart technology and broad distribution.”
CEO and Director
Collaborate Corporation Limited
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CEO and Director
About Collaborate Corporation Limited
Collaborate Corporation Limited is listed on the Australian Securities Exchange (ASX:CL8). It is Australia’s leading listed company focused on ‘collaborative consumption’, ‘peer-to-peer’ or ‘sharing economy’ business model with a strong focus on mobility solutions. Collaborate’s core business is www.DriveMyCar.com.au Australia’s leading peer-to-peer car rental business, complemented by www.Carly.co, Australia’s first flexible car subscription offering. Other businesses include www.MyCaravan.com.au a leading peer-to-peer caravan rental business; and www.Mobilise.com a rental marketplace for under-utilised assets. Through our proprietary trust and reputation platform, www.peerpass.com.au we create ‘trust’ between individuals and make it possible for people and companies to safely transact with each other in the sharing economy.