Mobility Investment Overview

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The way people buy and use cars is changing rapidly. Collaborate is leading the way in this $30B Australian market

ASX: CL8

Collaborate Corporation Limited

An opportunity to invest in a company that is creating the new ways to access vehicles that consumers are demanding in a A$30B per annum market

    • Collaborate provides unique mobility solutions to the automotive market enabling automotive manufacturers, leasing companies, automotive dealers and private vehicle owners to access new revenue streams for vehicles.
    • For drivers we provide flexible and cost-effective ways to access vehicles instead of relying on traditional car rental companies, purchasing, car loans or leasing.
    • Collaborate is positioned to benefit from four major global trends that are changing the way drivers access cars and the way the automotive industry generates revenue.

Why Invest?

The Current Opportunity

    • Collaborate is at the forefront of the rapidly developing global trends changing mobility and the way people buy and use cars
    • Collaborate has established significant industry partnerships to exploit this large opportunity
    • The potential is extraordinarily large in Australia with over $30B of new passenger and SUV vehicles purchased in Australia each year
    • Collaborate is the only opportunity to invest in an ASX listed business with a proven technology platform, established automotive industry partnerships, and significant operating experience that is addressing the rapidly emerging car subscription opportunity.

Wise-Owl Research Update
20 February 2019

“Carly is tapping into a potentially significant market, which is gaining good traction in the US and Europe and is largely unexplored in Australia”

Collaborate has two key offerings in the mobility industry

Australia’s first and largest peer-to-peer car rental operator.

Powering multiple mobility solutions, from short term to long term – car share, car rental and rideshare rental

  • Over $8.2 million paid out to vehicle owners
  • Over 365,000 rental days delivered
  • Over 51,000 registered users

An alternative to traditional car rental – wider choice, more locations and lower prices.

Carly is Australia’s first truly flexible monthly car subscription, providing the freedom to switch your car to suit your lifestyle.

Choose from more than 20 brands offering a range of models: economy to luxury, hatchback to SUV. There are no hefty upfront fees or long term lock-in contracts, and registration, servicing and maintenance are included. Start, change or stop your subscription at any time.

It’s more car, less hassle. Join today, drive tomorrow. Simple.

An alternative to buying, leasing or taking out a car loan.

Online Marketplace

Collaborate operates online marketplaces that enable owners of vehicles to access demand and generate revenue from people and companies who are require access to vehicles. Insurance, agreements, logistics, marketing and payments are managed by Collaborate.

Partners

Collaborate has partnered with large corporations to deliver unique solutions for their own needs and their customers, including Uber, Subaru, Peugeot, RACV, Lei Shing Hong, Orix, Interleasing and Custom Fleet.

Unique Business Model

Collaborate does not own or lease any cars, we have adopted a sharing economy model to match supply of vehicles with demand and provide essential services to make the transactions safe, efficient and cost-effective.

Rental & Subscription

Through its two offerings, DriveMyCar and Carly, Collaborate meets multiple mobility needs including short term rentals, accident replacement rentals, long term rentals, rideshare rentals, apartment car share and subscription.

Trust & Verification

Collaborate has developed its own trust and verification platform, PeerPass, to verify customers before they gain access to a vehicle, delivering a higher quality experience for vehicle owners and reducing the risk of fraud, theft and damage.

Significant Market Opportunity

Collaborate has positioned itself at the intersection of significant global trends incorporating access, mobility and subscription that are predicted to grow significantly as younger generations embrace new ways to access vehicles that better suit their needs and lifestyle.

Partners

Some of the largest organisations in Australia and the world have forged relationships with Collaborate to access our unique ability to engage asset owners with renters in a trusted environment that creates value for both parties.

$1 million strategic investment to leverage Collaborate’s peer-to-peer marketplace platform to provide opportunities for RACV’s 2.1 million members

DriveMyCar is one of a select few companies authorised to provide vehicles for Uber drivers, leveraging OEM’s, leasing companies and dealers for supply

DriveMyCar leveraged its Uber relationship and other channels to create experiential marketing campaigns for over 200 Levorg, Impreza and XV vehicles

DriveMyCar introduced 115 Peugeot vehicles to the fleet, building brand awareness and providing try before you buy experiences

Custom Fleet is Australia and New Zealand’s premier fleet management organisation and provides vehicles for private renters and Uber drivers

DriveMyCar delivers new rental income opportunity for owned vehicles

Creating new revenue streams for new and used vehicles since 2014

DriveMyCar is the recommended rental vehicle provider for corporate and government clients

New monetisation channels for ex-lease vehicles

One of the largest dealer groups for Mercedes-Benz passenger vehicles globally

The Way Consumers Access Cars is Changing

Vehicle subscription is a new concept, however a recent J.D Power/Acxiom study indicates that 59% of people overall would be interested in a vehicle subscription.

This rises to 78% for Generation Z – those born from 1995 – 2004.

The Way the Automotive Industry Sells Cars is Changing

The new and used car franchise dealership model is under attack, both direct and tangential, from many sides. Some will change the way Dealers do business, others will aim to take that business. We don’t know exactly how our industry will look in five years’ time, but what we do know is that it will not look the same as it does today.   

Extract from Convention Theme Australian Automotive Dealer Association – National Dealer Convention Expo September 2018

Go Auto 28 Jan 2019: Subscription service for the lease-averse could help unblock credit squeeze sales logjam

Car subscription service Carly plans to open its business next month to cater for those who don’t want long-term commitments to owning or buying a car.

Carly will work in co-operation with OEMs, selected dealers and fleet leasing companies and is already looking at white-branding the business model to dealer groups.

It is being seen in dealer circles as a potential for retailers to get cars out of the showroom door that are presently not getting finance approval.

Dealers are saying that the reaction of some finance companies to the new ASIC rules and a very conservative response to funding cars ahead of the banking royal commission findings, is leaving thousands of willing buyers without the means to purchase their cars.

The subscription model being promoted by Carly has the potential to open up a new avenue to selling their cars.

Read more

The Opportunity for Vehicle Subscription

Consumers are demanding that the automotive industry deliver new and more flexible ways to access vehicles. Collaborate is meeting that need.

There are no widely available vehicle subscription products available in Australia.

Collaborate has launched Carly in March 2019 to take advantage of the vehicle subscription opportunity in Australia and leverage existing vehicle supply relationships with automotive manufacturers, automotive dealers and leasing companies.

Wise-Owl Research Update
20 February 2019

“Carly is tapping into a potentially significant market, which is gaining good traction in the US and Europe and is largely unexplored in Australia”

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Collaborate Corporation Limited does not provide any investment, legal, tax, estate planning, accounting advice or securities advice or recommendations. Collaborate Corporation Limited does not provide any advice or recommendations regarding the suitability, profitability or appropriateness of any financial product or investment strategy or any other matter to any person. You acknowledge that Collaborate Corporation Limited and its Directors and employees are not authorised to give any advice or make any recommendations to anyone, and you agree that you will not consider any communications to be advice from Collaborate Corporation Limited and in no event will any communication be interpreted or construed by you, or any other person, as advice or as a recommendation that you buy, sell or hold any financial product. An investment in Collaborate Corporation Limited should be considered a speculative investment. You should seek your own professional financial advice as to whether an investment in Collaborate Corporation Limited is suitable for you and your circumstances.