Driving up growth – SG Fleet invest $2.2 million in Carly

Posted: 14 November 2019 1:17 pm
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Carly and SG Fleet have partnered up to meet Aussie demand for car subscription services.

Australia's first flexible monthly car subscription service Carly has today signed a monumental $2.2 million deal with leading international mobility solutions provider SG Fleet. Carly, an innovator in the now fast growing car subscription sector, plans to use this investment to rapidly expand within the market.

SG Fleet, which currently has approximately $140,000 vehicles under management, is to supply Carly with 100 vehicles as part of the deal. This is to meet the ever-growing demand for car subscription services across Australia. Further vehicles are to be supplied later down the line.

This comes less than a month after Carly announced its partnership with automotive behemoth Hyundai and its aims to provide an affordable, convenient alternative to car ownership. The subsidiary of Australia's leading P2P company Collaborate Corporation is determined to continue to pioneer the industry. Today's announcement is yet another step in the right direction.

"When faced with changing market conditions, those that succeed and thrive are always the leaders who innovate and seize the opportunities that these changes bring. Following recent agreements with Hyundai, Turners Automotive Group and Suttons Motors, SG Fleet joining us as a strategic partner is further validation of Carly's leading role in this rapidly changing industry," said Carly CEO Chris Noone.

Breaking into the business sector

An area of interest for Carly in the coming months resides within the business segment. Businesses, which face fluctuations in trade throughout the year, often struggle to maintain cash flow while meeting demand.

"Business customers are a particular focus area for us," said Noone. "In combination with their permanent fleets, many businesses find themselves encountering differing levels of additional demand throughout the year, and would benefit from a vehicle access model that has predictable costs and can scale up and down according to their needs."

The ability for businesses to return and exchange fully licensed, insured and maintained vehicles, provides convenience for many companies. Storing automobiles that are only in use for part of the year can be costly. Not to mention that the initial purchases would take a toll on any industry's cash flow, particularly a startup or small business.

Driving into a new age

Today's announcement heralds yet another win for the car subscription segment. In recent months the industry has gone from strength to strength. This is in response to growing concerns from car manufacturers that people are buying fewer new cars than ever before.

Just yesterday car sharing company Maven released that its 80% millennial-based customers have a growing inability or reluctance to buy new cars. Difficulty procuring bank finance is a noted contributing factor that continues to resurface. Although non-bank lenders are addressing the issue with easier to obtain loans, it's safe to say that the market has also forked down another road, and car subscription services are taking the wheel.

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