- Vehicle lender Collaborate (CL8) has reported continuing sales growth, despite COVID-19 restrictions returning in Australia and New Zealand
- Since the pandemic-induced lows of April 2020, the company has seen improvements in rental and subscription transaction values
- Collaborate’s car subscription service, Carly, also recently gained public attention after featuring on a segment of A Current Affair
- The company has implemented special procedures to deal with recently reinstated restrictions in Victoria and New Zealand
- Collaborate closed in the grey for 0.9 cents per share
Vehicle lender Collaborate (CL8) has reported continuing sales growth, despite COVID-19 restrictions returning in Australia and New Zealand.
The company has begun to bounce back from the COVID-19 lows of April, with month-on-month improvements in rental and subscription transaction values. Subscription transaction values in July 2020 were 48 per cent higher than they were in March, when COVID-19 restrictions first started being imposed.
The company implemented a business continuity plan in March 2020 to ensure minimal disruption to its operations, which included equipping the head office team in Sydney for remote working.
These encouraging results are partially thanks to the performance of Collaborate’s car rental business, DriveMyCar, and its car subscription service, Carly.
On August 18, A Current Affair featured Carly in a prime-time segment about flexible car options during COVID-19. After the TV program’s segment about Carly aired, website sessions increased by 123 per cent. Further, new users increased by 132 per cent, compared to the same day in the previous week.
In recent weeks, there has been a resurgence of the COVID-19 pandemic in some of Australia’s eastern states, most notably in Victoria. The state capital, Melbourne, is one of Collaborate’s key markets.
However, the company has implemented special procedures to deal with the recently reinstated restrictions in Victoria. In particular, the procedures will assist with the return of rented or subscribed vehicles, which may be impacted by the Victorian Government’s five-kilometre travel restrictions.
The recent resurgence of COVID-19 in New Zealand caused Turners Automotive Group to delay the launch of a car subscription solution, powered by Carly. Despite this, Collaborate and Turners are still working together to launch the subscription in the September 2020 quarter.
Collaborate closed in the grey for 0.9 cents per share.