Uber Car Hire Company, Splend, Is Thinking Global with 10pc Share Investment with Investec

Entrepreneur, Chris King, a regular of Uber’s services realised that there was a potential business opportunity in the ridesharing sector.  While noticing that a number of full-time drivers were using personal vehicles inappropriate for professional driving.  Chris also recognised that potential uberX drivers were being turned away for either not having a vehicle or because of the age of their vehicle.

KEY TAKAWAYS:

• $3 million in funding from specialist lender Investec, a deal that values the 18-month-old company at $28 million.
• The investment will be used to improve the company’s cash flow, roll out new vehicles and launch a new app for its members.
• Splend has 1300 Uber vehicles on the road in most Australian capital cities and provides car and insurance to Uber drivers at $269 a week.

Splend has created a platform in that helps it members to become more profitable, safer and happier drivers. Splend already has over 1300 Uber vehicles on the road in most Australian capital cities with providing a car and insurance to Uber drivers at $269p/w. With the company hoping to hit “multi-thousands” by the end of 2017.

“Mr King said Splend provides Uber drivers with “everything except the fuel and tolls” including the vehicle, registration, third party insurance, maintenance and accident management, which distinguishes it from traditional car hire or financing companies.

The car is just the entry point. We’re providing the product at the price that is equal to or cheaper than if the members try to do it themselves, he said.

He said the company also has no lock-in contract – drivers have to hire the car for six weeks’ minimum and can terminate the contract by giving two weeks’ notice – which makes it an option for Uber drivers who do not want to be burdened with a car loan.

If you buy a car you are locked in for four or five years. If you break the contract the bank or financier doesn’t want the car back, so you have to pay thousands of dollars just to break the contract, he said.

He said Splend was eyeing rolling out its business model globally.”

Splend is mostly providing for drivers of ride-sharing services, although with the rise of food delivery apps, such as UberEATS, these sorts of services are now adding growth to the company.”

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