CAR NEXT DOOR NETS $300,000 INVESTMENT
Written on the 16 May 2016
CAR-SHARING platform Car Next Door will accelerate national expansion plans after hooking Steve Baxter in a deal worth $300,000 on Shark Tank.
Co-founders Will Davies and Dave Trumbull (pictured left and right) pitched their share economy service that allows people to list their cars for rent while they're not in use.
Davies says car owners can offset expenses while helping reduce the number of personal vehicles in Australia.
"Over the last three years, we've proven the strength of our car-sharing platform and now we are squarely focused on growth," Davies says.
"Our existing fleet is made up of over 400 cars. By 2020, we aim to have turned 10,000 ordinary cars, utes and vans around Australia into shared vehicles.
"Having Steve on board as an investor and advisor during this pivotal time is a huge win."
Launched in 2012, Car Next Door operates in New South Wales and Victoria and plans to expand to other states.
The website has more than 15,000 screened members signed up to borrow, as well as provides an online booking and payment system, insurance and in-vehicle technology to protect the transaction.
Baxter will invest $300,000 in cash over three years in exchange for a 4 per cent stake with an options package.
"I was really impressed by Car Next Door and their pitch," says Baxter.
"The way we travel is changing fast and peer-to-peer car sharing is on the cusp of exponential growth - that's something I want to be part of."
Car Next Door has also raised $2.5 million in capital from Caltex and $1.3 million from venture capitalists and individual investors in the last six months.