Turners Automotive Group Limited is investing AUD$1 million (NZD $1,044,479.65) into ASX-listed Collaborate Corporation, a tech-focused car-sharing and vehicle subscription business based in Australia.
Turners will acquire a 12.13% stake in Collaborate Corp and will appoint a director to the Collaborate board.
Collaborate’s main business centres around DriveMyCar, an Australian peer-to-peer car rental business, complemented by Carly, Australia’s first flexible car subscription offering.
Turners launched a broader strategy at the end of May 2019, and this investment gives Turners the opportunity to participate in the rapid growth of the ‘sharing economy’ as it relates to transportation and changing consumer preferences.
“Strategically the investment in Collaborate makes sense for both companies. We have been impressed with Collaborate’s board and management team, the progress they have made and the traction they are getting with customers in a short space of time. We are very excited about the partnership between the two organisations,” Turners chairman Grant Baker says.
Investing and working with Collaborate means Turners will continue to focus on its core business of growing share in New Zealand automotive retail market but will now look at this opportunity in the larger and fast evolving Australian market.
“We are excited about Turners’ future as we position ourselves for the long-term projected changes in the traditional retail car market,” Turners chief executive officer Todd Hunter says.
“New concepts such as peer-to-peer car rentals and car sharing are a part of the future and provide a new revenue opportunity for car dealers and other industry players.”
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