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10/09/18
09:59
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Originally posted by tedthebear
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16 months after RACV came on board and we raised $4 million through their investment and option conversion its interesting to have a look through updates over that period.
This calendar year the only deals effecting revenue has been the Peugots on the 8th Feb. They still are not fully available and as such havn't had full impact. Other deals such as Melbourne airport car parking, RACV hail damage rentals and the latest Uber announcement have either had issues (hail rentals) or havn't been shown to have impacted revenue.
Last 12 months revenue: September 2017 $612 December 2017 $815 March 2018 $749 June 2018 $694
The growth opportunities announced 30th April this year were titled "Immediate Growth Opportunities", so far we havn't seen or heard success of those. The last update early this month showed Peugots still have issues in Queensland although Vic and NSW are booked or future booked. I wrote to Chris when we were having long delays with XV Subarus and asked if the same would happen with Peugots, he stated that to announce such a deal they had to be confident the vehicles would be available in a reasonable time so I think it is genuinely a third party issue. Dealer rentals are difficult and slow and I think unlikely to effect revenue in the short term, apartment car share is looking for vehicle owners to take part but as I have previously said I cant see this being a huge number of vehicles in an apartment block maybe 3-5 vehicles. The two day rentals is a positive but like with the rest of our rentals we have to have good utilisation rates as Radar as commented on, no value gained in having huge amounts of vehicles on the books if they are not used. Dealer rentals have the opportunity to bring large scale supply but we have to see demand matched otherwise it will be short lived. Before Not Trivial left we could see from his numbers that we had over 1100 cars but regularly had 180 odd cars rented.
A few snippets worth thinking about from previous announcements below...
April 2017:
"We look forward to working with RACV to identify opportunities to introduce our market leading services to RACV’s 2.1 million members and are excited about the opportunity to significantly accelerate the adoption of Collaborate’s platforms in the Victorian market. We also welcome RACV’s aspiration to make further investments in the Company.”
The RACV deal has not been as lucrative as I had hoped, with the strong potential for a short term cap raising will RACV follow through with their aspiration to make further investments ? I weekly get emails from RACV with travel deals and ads but there is yet to be any mention of car rental except Thrifty and nothing but a four line classified style ad in the Royal Auto magazine.
From June (i think, computer crashed and I lost my quotes) 2017 announcement:
"Significant progress in incubating a new peer-to-peer business with the identification of founding executives and engagement of a strategic marketing agency to commence development of branding and customer positioning."
Is this relating to Car Subscription service or is that the new idea? Is it relating to Bunch Insurance?
Mobilise announcement pre launch 2017:
"The engagement of corporate supply partners to provide assets for rental via the Mobilise marketplace is well advanced and it is becoming apparent that some existing corporate supply partners for DriveMyCar are also key potential providers for Mobilise."
Mobilise has added no revenue and is very quiet but costly, certainly has not met expectations. The only partners have been new relationships ( Allcot) and not that I have seen related from DMC.
We have a plethora of new staff over the last 12 months, Rob Rattray and John Tolmie for Mobilise, love to know what these guys are working on and if Chris is happy with their input. Suresh Thuraiayah Product Manager, David Treves Chief Technology Officer, Katherine Birch Cole marketing although if you look at her Linkedin page she is "Looking for new opportunities" and lists Collaborate as a contract/marketing consulting role... We also had a new operations manager join the team in May.
This is a bit all over the shop but a few points worth discussing and thinking about. A lot of the issues and concerns we were discussing in April this year are still current now and we havent seen a great deal of improvement or signs of short term change.
One strong positive though is the top 20 which held 46.6% November 2017 compared to 52.13% 30 August 2018 so thats something.
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I certainly feel that there was supposed to be a hell of a bit more to the Aon agreement, my thinking was CL8 was to develop the platform and prove 'proof of concept' and Aon would then buy in and promote hard, (could all still happen) in conjunction potentially Bunch (the next P2P Insurance platform) was also being developed with Aon and would also see support.
Drivemycar:-
Time allocation should be 95% Demand/5% Supply, Demand is directly connected to Revenue and Supply IS NOT !!. we have enough vehicles on the platform now to go CF+. You may even see Unavailble come back to available with better returns.
Most importantly you'll see organic supply come online via the best form of advertising 'word of mouth ' from providing a far superior ROI.
A greater focus on a variety of demand channels would have mitigated the recent Peugeot Rideshare farce.
The problem I want to see is an announcement stating:- We under-performed on revenue because all our vehicles we're booked and we're not getting supply quick enough!.