Car sharing service startup Carguru concluded its investment attraction phase and agreed to enter a partnership with car dealership and service centre Amserv. Together they hope to increase Carguru’s growth rate, as well as the size of their parking lots.
Carguru is Latvia’s first car sharing service, offering people in Riga the chance to rent a car for personal use, with no time restrictions, using an app on their mobile phone. The price of the service includes all expenses, including gas, car parking and insurance. In turn, registration and locking and unlocking the car is all done through their app, giving the client the opportunity to pick up and return the car at their convenience. Moreover, there is no minimum rental time – the client only has to pay for the time that they use the car. Since their founding in May of 2017, Carguru has reached 9,000 users and over 50,000 rides.
“When searching for investors, our goal wasn’t only to find a financial partner, but a firm with which we have versatile synergy. This is why we were searching for partners in the auto industry,” explains Carguru leader Vladimirs Reskajs. “We had discussions with many potential investors, but we saw Amserv as our best option. Henceforth we’ll use more Toyota brand cars (which Amserv is a dealer of), which have the benefit of being rated highly by our users.”
Carguru has already increased the size of its parking lot. Currently it contains more than 70 hybrid Toyota brand cars. By the end of the year they hope to have more than 100 cars, but by 2019 – 300.
Amserv director Armands Vimba views the cooperation very positively: “The auto industry is changing. Today, trends show that people are choosing to not have cars at their homes but rather use cars only as needed. Working with Carguru, I see the opportunity for Amserv to be part of this quickly growing startup, which is one of the first startups worldwide revolutionizing the car sharing industry. Furthermore, I’m personally attracted to the Carguru business model, which keeps the environment in mind and hopes to even improve it.” The future business plans of both Amserv and Carguru are also heading in the same direction; Carguru hopes to expand their business to Estonia, where Amserv is currently one of the market leaders.