SG Fleet, which operates in Australia, New Zealand and the United Kingdom, has committed the financial investment and the supply of an initial 100 vehicles to Carly.
It will also support the growth of the Carly vehicle subscription business and collaborate on consumer and business demand programs.
Carly, part of listed Australian company Collaborate Corporation Limited, is the nation’s first flexible car subscription program and complements Collaborate’s peer-to-peer car rental business, DriveMyCar.
Carly CEO Chris Noone described the investment in Collaborate by SG Fleet as sparking “a new age for car ownership in Australia”.
“Car finance is harder to obtain and banks are cracking down on lending,” he said. “As a nation, we’re moving to more flexible arrangements to suit lifestyle and personal circumstances.”
SG Fleet’s involvement follows hot on the heels of Carly’s recent agreement with Hyundai Motor Company Australia (HMCA) that promises Hyundai dealers an additional income stream and greater customer exposure.
The HMCA deal, which is yet to start, allows Hyundai’s 172 national dealers to operate Carly’s subscription service through their dealerships.
It is Carly’s first OEM partner but the third automotive retail agreement after two dealer groups, Suttons Motors Kia and Nissan in New South Wales and the Turners Automotive Group in New Zealand, signed up to use its service.
The Suttons deal is similar to the HMCA partnership but, in New Zealand, Turners will be launching Carly on Collaborate’s behalf.
Mr Noone said the vision of Carly was to offer the flexibility for customers to change the subscription to suit changes in their life or business requirements.
“Together with SG Fleet, we’ll meet the needs of both consumers and business customers who can benefit from car subscription,” he said.
“Business customers are a particular focus area for us. 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.
“We look forward to working with SG Fleet to rapidly expand our presence in this market segment, pioneering business car subscription in Australia.”
SG Fleet CEO Robbie Blau, who will now join the Collaborate board of directors, said: “SG Fleet constantly introduces new, high value-add solutions to both corporate customers and consumers to cater for their rapidly evolving mobility requirements.
“Our investment in Collaborate further strengthens our ability to widen our offering as demand for greater transport efficiency and flexibility intensifies.
“This investment complements our current core business activities and opens up additional revenue growth avenues,” he said.
SG Fleet Group Limited is one of Australia’s leading specialist providers of fleet management, vehicle leasing and salary packaging services. It has an international presence, employs about 700 staff and has about 140,000 vehicles under management.
By Neil Dowling
Read More: Related articles
