Community car-sharing app Karshare has secured £3m of funding to expand its business into new UK cities.
The company, which launched earlier this year, operates in Bristol, Manchester, Coventry and London, providing an on-demand peer-to-peer car sharing platform.
The new investment will support the company expanding in existing locations and launching in Birmingham, Leeds, Edinburgh and other rural communities such as Strathaven and Talybont.
Andy Hibbert, founder of Karshare, said: “The opportunity to share cars is vast. There are 33 million privately owned cars and 1.5 million registered vans in the UK. On average, these vehicles sit idle 96% of the time. For the many hours they are sat outside people’s homes on streets and driveways, they could be hired out to vetted drivers in the local area, put to good use and generate income for the owners.
“We’re in the perfect position to facilitate this – quickly, easily ,affordably and with great assurances for car owners and renters alike. The past 18 months has seen lives change dramatically, whether impacted financially, socially or career-wise; a vast amount of people don’t plan to return to exactly how their lives were before. And with that comes a question around car ownership and the associated costs.”
Karshare enables people to rent their car to others within their community. Unlike other platforms, it uses keyless technology which means all cars are instantly available. Renters can book immediately via the app and access the vehicle straight away, with no need to arrange a time and date to collect keys from the owner. The cars are also fully insured through the service and include breakdown cover.
In six months, Karshare has reported a 45% increase in revenue growth month-on-month and a 70% growth in members month-on-month.
“Our vision for the future is one where there are far less vehicles on our roads, and the vehicles we do have are being shared to give multiple users access for the trips they need. Essentially moving away from ownership toward usership. The sustainability benefits are huge. For each car shared, up to 24 can be taken off the road. Car sharing will play a key role in the move to net zero which will require 50% less cars to be on UK roads and as we transition more to EVs these benefits will continue to grow,” added Hibbert.
In addition to existing strategic investors Fullbrook Thorpe, Adjuvo Syndicate and other angel investors Karshare has secured a significant investment by Saracens Football Rugby Club owner Nigel Wray.