Subscription car service Drover raises $26 million as COVID-19 disrupts public transport - Business Insider

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Subscription car service Drover raises $26 million as COVID-19 disrupts public transport

Subscription car service Drover more than doubled the amount of subscriptions sold in May compared to a year ago.The round was co-led by new investors Target Global, RTP Global, and Autotech Ventures.Subscription car service Drover has raised £20.5 million in fresh funding, as the pandemic accelerates demand for car rentals.

Almost 40% of people in London expect to use public transport less post-lockdown than they did before the pandemic, according to a YouGov poll in April.. In May, car sales fell 89% on the same month last year, according to the Society of Motor Manufacturers & Traders. Drover's approach allows customers to access car services in much the same way as they shop for anything online, removing the need for them to take on debt or to invest in an asset that will likely depreciate.

Two years down the line, it was time to raise again, said Leuschner. The timing just happened to coincide with the pandemic, which has had a positive impact on trading activity in the last two months. The startup plans to use the money to scale the business across the UK and France, where it launched earlier this year despite a more restrictive lockdown.

Ben Kaminski, partner at venture capital firm Target Global, said Drover had already been seeing huge growth potential pre-pandemic.

 

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