The car subscription company Carly, which is listed on the ASX, released its July results to show how the service is gaining popularity in a post-COVID world and that there is demand for car subscription services once people find out about them.
The Carly announcement said, despite the imposition of tighter restrictions on economic activity and physical movement to varying degrees across Australia and New Zealand in recent weeks, revenue continues to improve and the key elements of the strategic plan remain unchanged.
Compared to March 2020 the average transaction value increased by 48% and the business received a significant boost in website traffic and membership rates when it featured on Current Affair in August with a positive review and explanation of the flexibility of car subscription services.
Collaborate CEO Chris Noone, said “While many businesses have been severely impacted by COVID-19, Collaborate’s efforts to reposition itself over the past 12 months have prepared it well to deal with the current challenges, benefit from economic uncertainty and leverage opportunities brought about by longer term structural change in the automotive market. “
“Carly car subscription is an alternative to a lease, loan or outright purchase of a vehicle and provides consumers and businesses with the ability to access vehicles they require without long-term financial risk. It is likely that the COVID- 19-related concern about strength of the economy will accelerate the shift to more flexible vehicle access options and believes that Carly is likely to benefit from this shift, even in an environment of slow economic growth. “
As previously announced, Turners Automotive Group, Collaborate’s third largest shareholder, delayed the launch of the car subscription solution, powered by Carly in New Zealand, beyond the previously scheduled date of 31 March 2020 in response to the New Zealand Government-mandated COVID-19 Level 4 lockdown restrictions. Despite the recent reimposition of lockdown restrictions in Auckland, Turners and Collaborate continue to work towards the launch of the subscription proposition in the September 2020 Quarter.
“Despite the current economic challenges, the July results show that Carly’s flexible vehicle access is an appealing and low risk solution for Australian businesses and consumers. We think that the shift to car subscription that started in 2019 will continue to accelerate,” added Chris Noone.