My major concern with this company is similar to the one facing Salesforce in the US now - Retention. Salesforce are finding that customers weren't continuing to use the service past the minimum opt in, a mere one in ten renewed their subscriptions.
The business is increasingly relying on marketing spend to acquire customers who aren't hanging around for long - not very sustainable.
So how does this apply to DMC?
The marketing spend is increasing awareness, that is evident in the uptick in Alexa rankings and social media reach. However, internet points are just part of the story. I see two problems.
Firstly, of the reach what is the conversion rate of both renters and suppliers. Secondly, what is the frequency of use of both new and existing clients? Someone mentioned renting your car while you go on holidays to offset the cost - great suggestion, I'm considering doing it myself. How often do you go on holidays? Once or twice a year?
How often do you catch a taxi?
There's a reason why Uber is as successful as it is from a consumer perspective. It's easy to use, something that you require frequently and it's relatively cheap. I don't feel as though DMC has the same ease of use and frequency of need to justify a direct comparison.
Just my 0.2
CL8 Price at posting:
3.8¢ Sentiment: None Disclosure: Not Held
