Leading international car rental company Europcar has partnered with South African car tech startup FlexClub to be a part of its innovative rent-to-buy car subscription model. The new partnership will enable Europcar to enter the car subscription space in South Africa and offer a fully digital service where locals can purchase vehicles with the ‘Drive Now, Buy Later’ model.
Tinashe Ruzane, CEO and co-founder of FlexClub comments on the partnership established with Europcar and what it means for the car rental company.
“We’re focused on making it easier for major mobility brands like Europcar to adapt to these changes and partner with us to create a superior digital experience for customers that value their freedom.”
The car subscription marketplace
The South African-founded automotive tech startup has created a platform that allows South Africans to purchase or rent vehicles at a subscription fee, which is all-inclusive of both insurance and maintenance. Depending on the driving behaviour, subscribed members of FlexClub will receive a car that will decrease in purchase price over time.
Members of FlexClub’s car subscription marketplace in Johannesburg or Cape Town are able to compare various car subscription offers that are at a fixed all-inclusive monthly fee. The service has been tailored to a customer’s convenience as the shopping experience covers member signup, payment, and vehicle delivery all in one platform.
Martin Lydall, CEO of Europcar South Africa, explains that the partnership between the two companies aims to provide a digital-first experience for interested car buyers in South Africa.
“Europcar are excited to partner with FlexClub in this innovative space. It gives customers access to our quality fleet of young vehicles supported nationally through our extensive branch network. Europcar pride itself on service excellence and simplicity and our partnership with FlexClub has been designed to ensure our product delivers great value and offers all customers a journey that is seamless and easy.”
Consumer behavior has drastically shifted due to the pandemic, causing eCommerce to accelerate in the automotive industry. FlexClub’s new digital subscription model closes the gap between car rental and auto retail companies as it offers an alternative to traditional car loans. The subscription gives members the opportunity to swap a vehicle, buy the car, or cancel their subscription at no additional cost.
