Carly Holdings Limited (ASX:CL8) celebrates two year anniversary and Turners Automotive expands fleet
Carly Holdings Limited (ASX:CL8) is celebrating two years since the launch of Carly Car Subscription, in March 2019. An inaugural year, followed by a year of economic devastation and crumbling job security are not idyllic conditions for the launch of a new business in an emerging sector of a competitive industry; but Carly Holdings has come out the other side having recorded strong growth during the COVID crisis.
Below are some company highlights that have been achieved in the first two years of operation:
- 137% increase in Subscription Transaction Value for December 2020 Quarter vs December 2019 Quarter
- Carly Subscription has increased to 59% of Rental and Subscription receipts for the Carly Holdings group.
- Partnered with new vehicle suppliers – The Alto Group in NSW, Ringwood Mazda in Victoria and Genesis Motors Australia.
- Expanded our electric vehicle fleet with the addition of Hyundai Ioniq EV and PHEV vehicles
- Received an exclusive ATO Product Ruling that provides a clear framework for individuals and businesses who subscribe through Carly to claim tax deductions.
- Strengthened our management team and welcomed Ben, our new COO (ex Deloitte & Hyundai), Dan our Head of Product (ex Optus) and Jess, Head of Marketing (ex eBay).
Substantial Insurance Cost Reductions
Carly Holdings also achieved significant improvements in claims on their motor fleet insurance policy in the year ended 21 March 2021.
Specifically:
- 25% reduction in Claims Loss Ratio
- 9.1% reduction in motor fleet insurance premium for 2021/22
- Maximum Claims Experience Discount – 115% higher than 2019/20 policy year
- 28% reduction in insurance claims
The operational improvements are a result of enhancements to the PeerPass verification platform and the transition from the rental model to the subscription model which delivers a lower risk profile for vehicle usage.
The Claims Loss Ratio, which measures the value of claims as a percentage of insurance premium paid, reduced from 64% in 2019/20 to 38.9% in the 2020/21 policy year which ended on 21 March 2021.
Due to this achievement the motor fleet insurance premium for the 2021/22 policy year has been reduced by 9.1%. This reduction was achieved despite a general increase in motor insurance premiums across the industry.
The continuing transition to the subscription model is expected to deliver Claims Experience Discounts and insurance premium reductions in future periods. Insurance costs make up a significant proportion of cost of sales and the CED and insurance premium reductions will support improvements in unit economics and gross margin in future periods.
Partner Update: Turners Subscription Adds 60+ Vehicles to White Labelled Platform
In early March, Turners Subscription added over 60 additional vehicles to the Turners Subscription fleet. This takes their total vehicles available for subscription to over 90 at the time of writing, and also includes a number of Electric Vehicles.
Carly provides Turners with an end-to-end online subscription platform and customer service management while Turners manage their own fleet, operations and marketing services, which are integrated into the website and software. By partnering with Carly, Turners were able to rapidly launch a car subscription business without the need to build their online online technology platform.
