FlexClub, a South African-based marketplace for vehicle hiring, has partnered with smart asset financing firm Untapped Global and Mexican motorcycle manufacturer ITALIKA, to offer vehicle subscriptions to on-demand workers in Mexico and South Africa.
FlexClub is a subscription marketplace for vehicles in SA and Mexico, which provides an additional distribution channel to leasing and vehicle rental companies like Avis and Europcar, looking to offer vehicle subscriptions to customers that want an alternative to traditional vehicle purchasing.
The partnership will make over 2 000 vehicles, including 1 000 electric motorcycles, more accessible for customers and independent on-demand workers using platforms like Uber, Rappi, Didi and Bolt to earn income.
According to a statement, the collaboration was inspired by the lack of formal access to vehicle financing in emerging markets, a perennial problem that has left millions of on-demand workers vulnerable to predatory informal vehicle rentals.
Established asset financiers and leasing companies have been reluctant to serve this segment due to the high perceived risk － a problem understood by FlexClub, a technology start-up founded by former executives of the vehicle solutions unit at Uber.
Fuelled by the pandemic, vehicle hiring subscriptions have grown in popularity globally, as more customers search for simpler alternatives to conventional auto loans, which are notoriously rigid and cumbersome.
A subscription-based model, according to FlexClub, offers customers the added benefit of flexibility, accessibility and convenience, eliminating the need for customers to incur separate insurance, maintenance or depreciation costs, due to the all-inclusive pricing.
“The combination of our risk management technology and digital distribution capabilities enables progressive asset financiers, leasing companies and even vehicle manufacturers, to easily launch and operate vehicle subscriptions more profitably, serving a range of customers, including on-demand workers,” says Tinashe Ruzane, CEO of FlexClub.
“This partnership will extend the reach of vehicle subscriptions to thousands more customers on the FlexClub marketplace, creating the foundation for financiers like Untapped Global to increase investment in asset-backed funding of vehicle subscriptions,” adds Ruzane.
ITALIKA has more than three million customers globally who use its motorcycles, including delivery services. Its motorcycles are produced mainly for the Mexican market and exported to other parts of the globe.
Untapped Global offers smart asset financing to asset-based businesses across Africa and other emerging markets. The company provides an investment model that provides flexible capital for fast-growing companies, leveraging technology to make investments more profitable for investors by tracking assets and capturing revenue in real-time, it says.
According to Jim Chu, CEO of Untapped Global, the partnership with FlexClub creates opportunities for on-demand workers and small business entrepreneurs to significantly improve their earnings potential in emerging economies.
“Simplified access to assets will catalyse a new wave of earnings opportunities through access to vehicles, for thousands of entrepreneurs in economies such as Mexico and South Africa.”
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