- Collaborate (CL8) has signed an agreement to enable five more Suttons Motors dealerships to supply vehicles for Carly and DriveMyCar
- Carly is the company's flexible car subscription platform and DriveMyCar is Australia's leading car rental business
- The new agreement includes Suttons Arncliffe, Chullora & Homebush, Mosman Toyota and Volvo Lindfield
- The deal also increases vehicle supply at a strategic time before the summer holiday period
- This is expected to be a period of strong financial growth for Collaborate
- Company shares are up a healthy 7.14 per cent with shares trading for 1.5 cents each
Collaborate (CL8) has signed a deal with Suttons Motors to supply vehicles for Carly subscriptions and for rental demand, DriveMyCar.
This news follows an announcement made to the market back in June about a vehicle supply agreement with Suttons Motors, one of the largest motor vehicle dealerships in New South Wales.
The new agreement includes Suttons Arncliffe, Chullora & Homebush, Mosman Toyota and Volvo Lindfield.
It also follows a successful collaboration with the Suttons City dealership which initially included new Kia vehicles and has recently expanded to include new Nissan and Holden, models.
"This expansion of Suttons vehicle fleet and dealer sites demonstrates that subscription works for dealers and can play a vital role in generating additional revenue in a shifting automotive climate," Collaborate, CEO Chris, Noone said.
Usually, the December quarter delivers the strongest revenue for the DriveMyCar rental business due to increased demand during the summer holidays.
However, for the first time, this quarter will benefit from the additional demand from Carly. The extra pick up locations, volume and range of cars will assist in meeting this demand across Sydney.
Carly generates revenue when vehicles are subscribed to via Carly, with a recent average revenue per month of $303 per subscribed vehicle, based on an average monthly subscription value of $863 per month.
While the Carly business model is new, there is, potentially, a very large market size.
Collaborate is up a healthy 7.14 per cent with shares trading for 1.5 cents each at 3:26 pm AEDT.