Turners invest in AUS car subscription and sharing business

Company announcement
1 July 2019

TURNERS INVEST IN AUS CAR SUBSCRIPTION AND SHARING BUSINESS
Turners Gains Access to High Growth Car Sharing Market via Investment in Australian Tech-Focused Car
Share and Vehicle Subscription Platform
As a sub-set of its newly developed growth strategy, Turners Automotive Group Limited (NZX/ASX:TRA) is
investing AUD$1 million into ASX-listed Collaborate Corporation, a tech-focused car-sharing and vehicle
subscription business based in Australia.
Turners will acquire a 12.13% stake in Collaborate Corp (CL8.ASX) and will appoint a director to the
Collaborate board. Collaborate’s core business centres around the rapidly evolving car sharing market
with DriveMyCar, Australia’s leading peer-to-peer car rental business, complemented by Carly, Australia’s
first truly flexible car subscription offering, which launched in March 2019.
This is the first of a series of potential investments by Turners under the pillar of innovation and ventures,
a part of its broader strategy launched at the end of May 2019. The investment in Collaborate strongly
fulfils Turners’ investment criteria, given its adjacency to Turner's existing business model, the potential
synergies that exist between both companies and the exciting opportunity for Turners to participate in
the rapid growth of the 'Sharing Economy' as it relates to transportation and changing consumer
preferences.
Investing and working with Collaborate enables Turners to continue focusing on its core business of
growing share in New Zealand automotive retail market, but with exposure to this exciting opportunity in
the larger and fast evolving Australian market. Likewise, it presents the opportunity for Turners to learn
and potentially introduce this capability into the New Zealand market.
Turners chairman, Grant Baker, said: “Strategically the investment in Collaborate makes sense for both
companies. We have been impressed with Collaborate’s board and management team, the progress they
have made and the traction they are getting with customers in a short space of time. We are very excited
about the partnership between the two organisations.”
Alternative vehicle ownership models are on the rise internationally, and vehicle subscription
programmes could account for nearly 10% of all new vehicle sales in the US and Europe by 2025. In
developed markets like the UK and the US, subscription-based ownership models have already crossed
10% of monthly household incomes, driven in large part by the benefits experienced by consumers such
as greater flexibility and a reduction in costs incurred including the purchase of vehicles, parking,
insurance, fuel and maintenance
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Turners CEO Todd Hunter said: “We are excited about Turner’s future as we position ourselves for the
long term projected changes in the traditional retail car market. New concepts such as peer to peer car

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https://www.forbes.com/sites/sarwantsingh/2018/07/30/your-next-car-could-be-a-flexible-subscription-
model/#2ec7ac4f4ffa

rentals and car sharing are a part of the future and provide a new revenue opportunity for car dealers and
other industry players.”
DriveMyCar
DriveMyCar is Australia's first and largest peer to peer car rental service, making it possible for people to
rent a car from a private owner with confidence. The business has created a 'trusted marketplace' where
owners list their vehicles for free and renters can find and make a car booking after passing verification
processes. Coverage is provided for accidental damage and theft. DriveMyCar offers flexible rental
periods, is up to 57% cheaper than traditional car rental companies and enables owners to earn money
from a vehicle they are not using.
Collaborate estimates up to 13.5 million cars across Australia are under-utilised and often sitting idle in
garages and carparks. It is targeting both the private car rental market as well as corporate customers. It
is also leveraging the growing popularity of the ridesharing industry and has an agreement which allows
existing UberX drives to rent idle corporate fleet cars, with DriveMyCar working to ensure the right types
of vehicles are available at the right times for the right rental periods.
Carly
The vehicle subscription concept is still new but is rapidly gaining in popularity. Not only does it offer
flexibility, variety, minimal responsibility and an all-round simpler solution to vehicle ownership, the single
monthly payment covers all the usual costs of vehicle ownership, from registration and insurance to
maintenance and repairs. Customers can choose and switch cars to suit their lifestyle and their needs.
Carly will provide the flexibility that many drivers and especially younger generations are now seeking -
no long term commitments, no upfront costs or loans to buy a car and the ability to change cars when you
want. Whilst the transition of consumers moving from buying vehicles to utilising vehicle subscription
services is expected to take time, the strong potential of car subscription is supported by the large number
of vehicle manufacturers and startups launching services in the USA and recent large investment by
Softbank in the sector.
ENDS

About Turners
Turners Automotive Group Limited is an integrated financial services group, primarily operating in the
automotive sector www.turnersautogroup.co.nz

For further information, please contact;
Todd Hunter, Chief Executive Officer, Turners Automotive Group Limited Mob: 021 722 818
Media Liaison and Assistance: Jackie Ellis, Mob: 027 246 2505