Diversified vehicle company Zeda hit a bit of a speed bump on listing on Monday, dropping 7%. But the spinoff of the diversified vehicle rental and leasing operation will enable Barloworld, a global industrial processing, distribution and services company, to refocus on its core businesses: earth-moving equipment and consumer businesses.
In a statement issued before the listing, Ganda said: “The listing is a culmination of three years of hard work and dedication to unlock our mobility aspirations for Southern Africa. We foresee a future of usership, where our customers can rent a vehicle from us for a specified amount of time and a set cost. Customers have a vehicle when they need it and don’t when they don’t need it – thereby reducing the overall cost of ownership for the customer.
“Zeda knows how to ensure that a car generates a good return. All that a consumer needs is access to a vehicle. If we have not learned anything from Covid – paying insurance and maintenance on a vehicle [that you don’t drive], then I think we still have somewhere to go.” It also puts them in direct competition with the banks, whose customers think they own a vehicle, but at the end of the loan period – which can stretch into 96 months – they are faced with a residual balloon payment of up to 35%. So, do you really own the vehicle, she asks.