Splend raises $7.2 million for expansion

Date: 5 JAN 2018posted by Car Rentaledited by WinX

Splend is Australia's largest car rental provider for ride sharing drivers. The company was launched in July 2015 with the sole purpose of letting anyone generate income by driving for Uber, even if they did not own a vehicle. Their fleet of 1700 vehicles currently operate not only in Australia, but also in Toronto, Mexico City and London. The company has raised over $220 million in debt financing from Element Fleet Manage, the world's largest fleet management business, in addition to a $7.2 million cash injection in exchange for 12.5% percent equity of the company. This new financing will enable it to expand their international fleet to 15,000 vehicles over the next few years as they are already in the process of securing deals with car manufacturers. Chris King, Splend founder and chief executive expressed it was important for the company to grow by purchasing more vehicles. "Over the next few years we see ourselves getting to 15,000 vehicles. Australia is a small market, but in Mexico City there are more people in one city than the whole of Australia and public transport is poor and there are high barriers to car ownership," he explained. "Australia is our home and our primary market, but I've relocated to London to spearhead the international launches and we've had other senior leaders move to Canada and Mexico too." Splend charges a weekly rate of $269 which is very similar to a regular car rental pricing. They also offer a slightly higher priced deal in which the driver can own the vehicle after three to five years. While they do charge almost the same rate as a regular car rental, they support the drivers by providing insurance, registration and maintenance of the vehicles making it much more reasonable to partner with Splend. The company also provides account management support and offers additional coaching, mentoring and holds regular community events to ease the feeling of isolation of on-demand driving. "We see ourselves as enabling for the drivers to bundle in a few different activities in order to increase and support higher earnings for drivers."

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