Australia’s largest peer to peer platform Car Next Door has doubled its marketplace revenue (100% YoY growth) every year since 2015.
Will Davies CEO and co-founder of the startup, which lets drivers share their cars with neighbours, says that he’s deliberately chosen to prioritise expansion over profitability, following the likes of Uber and Airbnb.
“When we started in 2013, the plan was to build a peer-to-peer car share platform that in five years’ time was having a real impact on the planet, by reducing CO2 emissions from our wasteful ‘one person, one car’ mentality. Secondly, the plan was for the business to be making a profit,” said Mr Davies.
“We’ve been in a position where we could break even from 2017, but decided to re-invest in growth and not run the business at a profit.”
The share platform has just launched a Series C capital to expand the platform and build capabilities for international launch.
Car Next Door has lots of interest from businesses that realise the current mode of transport, with everyone owning a car, is changing, he said.
These include car manufacturers and companies involved in vehicles in different ways, like insurance companies, other car sharing companies, multinational conglomerates with interest in transport, and other parties interested in gaining deep learnings about the car sharing market, he said.
Car Next Door has raised $13m to date. Early in 2018, the company closed a $2M investment from Hyundai, who joined existing investors Caltex, early stage investment group Investible, Macquarie Group, Hollard Insurance Company, Russian Investment firm Larix VC, venture capitalist Roger Allen and Shark Tank’s Steve Baxter.
About Car Next Door
From a pilot operating in a few Sydney suburbs in 2013, Car Next Door has grown to a powerful peer-to-peer car-sharing marketplace operating in five cities, with over 115,000 approved members sharing over 2,000 cars and Marketplace revenue of more than $10 million a year growing at 100% year on year since 2015.