Online car retailer Cazoo is buying car subscription platform Drover for an undisclosed sum.
The deal aims to combine Cazoo’s brand, platform and funding with Drover’s expertise and relationships in car subscription. Once integrated, Cazoo says it will give customers the option of purchasing, financing or subscribing to the cars on its platform.
Cazoo had planned to launch its own subscription service in late 2021, this acquisition, it says, will now accelerate its plans in the fast-growing Cars-as-a-Service (CaaS) market as it seeks to extend its offering to become what it describes as the Netflix of cars.
Alex Chesterman, founder and CEO of Cazoo, says that the acquisition of Drover will enable Cazoo to “rapidly expand” into car subscriptions and give its customers the option of purchasing their next car outright, financing it over a multi-year period or “subscribing for a shorter, more flexible period”.
"I am looking forward to welcoming Felix (Leuschner, founder and CEO of Drover) and his team to Cazoo and continuing to deliver the most innovative and best options for consumers across the UK looking for their next car,” he said.
Founded in 2016, Drover employs more than 100 people across London, Lisbon, Paris and Bucharest. It offers an alternative to car ownership, with a single monthly subscription fee which includes the car, maintenance, service, road tax and breakdown cover.
Felix Leuschner, founder and CEO of Drover said: “I am very proud of what we have achieved with Drover in such short time.
“We have built a great team and developed a sizeable and loyal subscriber base with strong revenues.
“Alex and the team at Cazoo have a very clear strategy and vision and I am very much looking forward to accelerating the growth of car subscriptions as part of Cazoo and to continuing to develop the business beyond the UK.”
Drover also has a subscription business in France, which will form the launchpad for Cazoo’s planned European expansion as it looks to both mirror the offering in France to the wider Cazoo proposition and push into other markets.
Cazoo has been rolling out its customer centres across the UK, opening 14 new sites in the past 14 weeks and once this acquisition is integrated its subscription customers will be able to choose between having their car delivered to their door or collecting it within as little as 72 hours, it says.
Cazoo delivered its 10,000th car since its launch a year ago and has generated revenues of more than £150 million in its first year, having grown to a team of 800-plus people and achieving a valuation of more than £2 billion.
This latest acquisition comes after Cazoo bought independent used car retailer Imperial Car Supermarkets for an undisclosed sum in July.