Tech in Africa
FlexClub will pilot car subscriptions for a limited number of private members on its platform in Johannesburg. This is part of the expansion of the “Drive Now, Buy Later” drive.
FlexClub is expanding its market to cover over 700,000 South Africans in the market shopping for personal cars. Subscriptions on the platform cover existing car rental brands and fleet providers. Avis is the first car rental brand to launch car subscription services on FlexClub’s marketplace.
According to Auto Rental News Avis CEO Ramasela Ganda described the Drive Now, Buy Later as a great product offering flexible money solutions that cater to the market’s ever-evolving needs. Despite the challenges facing the automotive industry consumers EU and US digital auto retailers like Shift, Cazoo, Carvana, and Vroom have experienced sustained growth throughout the year. The heightened adoption of e-commerce has held its momentum across the globe with shoppers eager to avoid the traditional car-purchase forms.
SA-based FlexClub matches investors and drivers to ride-hailing services. The company closed a $1.2 million seed round led by CRE Venture Capital in 2019. The round later also received participation from the Savannah Fund and SA investor Michael Jordaan. FlexClub will then channel this funding to add more members and expand its footprint into North America with a partnership with Uber Mexico.
FlexClub gives investors the opportunity to check into the site, buy a car which is then managed and serviced by FlexClub. The platform then links that vehicle to an Uber driver who pays a weekly rental charge. The fees charged generate monthly fixed-rate interest income for any investor. After a year, the driver has the option of buying the vehicle outright.
FlexClub’s platform manages the investments rental income and disbursements. This also covers maintenance, insurance, and vehicle upkeep. FlexClub is solving the informality of the sector by productizing and standardizing the exchange between the asset owners and those who use it.
