Europe’s largest peer-to-peer car rental website has launched in the UK signalling a heating up of competition in the sector.
Drivy, which is headquartered in Paris, raised €31m (£28m) last year from a range of venture capital funds, including London’s Index Ventures, to help fuel its expansion ambitions and the UK will be its sixth market.
Chief executive Paulin Dementhon said the site will be starting in London with 100 users as well as 30 cars put on the platform by an owner of a car fleet in Europe but expected numbers to increase rapidly. It expects to have 2,000 cars listed on the site in a year and 100,000 users across the UK.
Mr Dementhon said while this would cost the company some money in the short term, the experience in its other markets suggested owners will earn above the £250 per month mark anyway meaning Drivy won’t have to pay out itself.
The company takes a 30pc cut of the hire amount, although half of this pays for insurance and roadside assistance, which is provided by Allianz and the AA respectively.
Drivy’s entry into the UK market will see it competing against rival services such as Zipcar, which owns the vehicles it rents out, and the likes of peer-to-peer businesses easyCar and HiyaCar. While Drivy will predominantly be for individual car owners, it is also encouraging entrepreneurs, local car dealers and independent car hire companies to register too.
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