December Quarter Performance Update and Key Product Launches
- Net Rental Days Booked in October 2018 increased 76% vs September 2018 and increased 29% vs October 2017.
- The first batch of twenty vehicles provided by Custom Fleet are now available for booking in Sydney and Brisbane.
- Rideshare rentals for Uber drivers have re-commenced in Queensland.
- Brisbane airport pick up options for rental cars are now available at Gateway Airport Parking 24 hours a day, 365 days a year.
- The ManageMyCar service is now live at Brisbane Airport.
- Vehicles are now available for booking as part of the Apartment Car Share Pilot in Sydney.
- A major update has been made to the Collaborate Sharing Platform with the DriveMyCar website undergoing migration to Amazon Web Services hosting.
- Website development for Mercedes-Benz Melbourne Airport rentals with valet pick up has commenced.
- A referral program for MyCaravan has been launched, offering incentives for 'scouts' to refer caravans for listing.
Net Rental Days Booked in October 2018 has shown solid growth, increasing 76% vs September 2018 and 29% vs October 2017. The increase in bookings coincides with slightly increased marketing expenditure, competitor price increases and seasonal uplift in advance of the summer holiday period. The DriveMyCar Price Index indicates that competitor prices 30 days in advance have increased 138% vs the week commencing 27 November 2018. Increased competitor prices are positive for DriveMyCar as customers are more likely to seek out challenger brands in preference to the higher prices charged by traditional car rental companies.
As announced on 9 October 2018, DriveMyCar signed an agreement with Custom Fleet to provide vehicles in Sydney, Melbourne and Brisbane for collection from central locations.
The first twenty vehicles are now available for rental in Sydney and Brisbane. Additionally, vehicles are intended to be available for pick up from DriveMyCar's airport locations in Sydney and Melbourne. This new supply channel of quality vehicles will be available to private renters, business customers and Uber drivers.
Following changes in 2018 to registration requirements for rideshare vehicles in Queensland, vehicle owners are required to take additional steps to provide vehicles for rental to Uber drivers. Vehicles have now been successfully registered under the new legislation and rideshare rentals have now re-commenced in Queensland.
As announced on 1 November 2018, DriveMyCar signed an agreement with Gateway Airport Parking Pty Ltd to provide airport pick up and ManageMyCar services at Brisbane Airport. Through this agreement DriveMyCar is now providing Brisbane airport pick up options for rental cars at Gateway Airport Parking 24 hours a day, 365 days a year including a complimentary shuttle bus to and from the airport.
DriveMyCar now offers the ManageMyCar service at Brisbane Airport enabling vehicle owners to have rentals of their vehicles managed on their behalf including rental handovers and storage between rentals. This provides a full service model to vehicle owners who wish to earn income from their vehicle while they are not using it for extended periods including holidays and working overseas or interstate. The ManageMyCar service is also being utilised to manage vehicles provided by corporate fleets and to facilitate rideshare rentals for Uber drivers.
The rental phase of the Apartment Car Share Pilot in Willoughby in New South Wales in association with Hyecorp, a company associated with Hishenk, Collaborate's largest shareholder, has now commenced. Hyecorp and DriveMyCar share the vision that this offering can be scaled and provide a new revenue stream for DriveMyCar which has significant growth potential. The car share pilot aims to provide residents of apartment developments with the opportunity to share their own cars with other residents. DriveMyCar has engaged with the strata committee in relation to the roll-out and operations of the car sharing pilot. DriveMyCar provides customer service, booking functionality, technology for the unlocking and security of vehicles and owner and renter payment management. The minimum rental period per rental is 1 hour. The first stage of the pilot, recruiting owners to list their vehicles for rent has been completed and the second phase offering those vehicles for rent has commenced.
The Collaborate sharing platform has been further enhanced with the migration of the DriveMyCar website to hosting on Amazon Web Services infrastructure. This upgrade provides increased scalability, security and resilience options as well as improving page loading speed which is expected to increase customer satisfaction and conversion metrics.
This launch also includes improvements to the vehicle search functionality. As announced on 19 October 2018, LSH Auto (Melbourne) Pty. Ltd. trading as Mercedes-Benz Melbourne has signed an agreement for the supply of vehicles to the DriveMyCar marketplace and the launch of a premium vehicle rental service. The first collaboration between DriveMyCar and LSH's Mercedes-Benz dealerships will launch at Melbourne Airport. DriveMyCar will make a range of new Mercedes-Benz vehicles including A-Class, BClass, CLA, C-Class, X-Class and GLA vehicles available for rent to Melbourne residents and incoming visitors via the Mercedes-Benz Melbourne Airport dealership. Upon arrival at Melbourne Airport customers will be collected from the Domestic or International terminals by a Mercedes-Benz valet driver and conveyed to Mercedes-Benz Melbourne Airport for collection of their vehicle. This new collaboration will be promoted to Mercedes owners across Australia and new and existing DriveMyCar customers who are seeking a luxury driving experience with the convenience of airport valet pick up. This collaboration will appeal to tourists, business travellers and those seeking to experience Mercedes-Benz for weekends away or extended vehicle evaluations. The Melbourne Airport service is expected to launch in the December 2018 Quarter, subject to third party approvals, in time for the seasonal increase in vehicle rental demand.
An online referral program to incentivise listing of caravans on MyCaravan has been launched. MyCaravan 'Scouts' will receive $100 for each approved listing they refer and caravan owners will receive a bonus $100 upon first rental. This owner offer to increase supply of caravans follows the launch of the $2500 per annum Income Guarantee offered to private owners who list their vehicles on DriveMyCar.
The December Quarter traditionally produces the strongest revenue results due to the seasonal uplift in demand. DriveMyCar is well positioned to take advantage with multiple supply initiatives targeting corporate and consumer channels, improved product features including search and a strong focus on Queensland with a re-launch of rideshare rentals and increased supply of vehicles by Cricks Tweed and Custom Fleet.
About Collaborate Corporation Ltd
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' businesses. Collaborate currently has three core business segments: www.DriveMyCar.com.au Australia's leading peer-to-peer car rental business; www.MyCaravan.com.au Australia's leading peer-to-peer caravan rental business; and www.Mobilise.com an online hire marketplace to unlock the enormous potential of 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 to safely transact with each other in the sharing economy.
Collaborate Corporation Ltd