Drover (company)

Drover was a London-based company providing vehicle subscriptions.

Drover
TypePrivately held company
IndustryAutomotive Industry
Founded2015
Founder
  • Felix Leuschner
  • Matt Varughese
DefunctJune 22, 2022 (2022-06-22)
Headquarters
London
,
UK
ServicesCar Subscriptions
Number of employees
120
Websitewww.joindrover.com

Users paid a recurring fee for the right to use a car with insurance, maintenance, tax, MOT and breakdown coverage, and could swap vehicles during the subscription or to cancel their subscriptions outright.

History

Drover was founded in late 2015 by Felix Leuschner, previously CEO of a fashion platform Sylistpick and virtual goods market Gamegoods,[1] and Matt Varughese. They had observed that most of the innovation in the mobility space had been focused on how to get from A to B but that very little had been done around car ownership itself.[2]

In March 2018 Drover received funding of £5.5m from investors including BP Ventures, Partech Ventures and Cherry Ventures. This was on top of a £2m pre-seed investment.[3]

In April 2018 Drover partnered with BMW Group to provide BMW and Mini vehicles on the platform.[4][5]

In December 2020, Drover announced that they were being acquired by Cazoo.[6]

In June 2022, Cazoo announced the closure of their 'cash intensive' car subscription services as part of a cost cutting plan.[7]

Service

Drover did not own any cars, but provided a marketplace for vehicle subscriptions.[8][9] Users pay a monthly fee for a car, including insurance, breakdown cover, maintenance tax and MOT. There are no long term commitments so users can swap, upgrade, downgrade or cancel their subscriptions.[10] Felix Leuschner, CEO, claims that by providing a more seamless, online and all-inclusive experience, Drover will be able to improve the typical car purchasing experience.[11][12]

In 2018 some industry experts had predicted that the rise of autonomous vehicles will see traditional finance methods superseded by subscription services.[13][14]

References
  1. Clawson, Trevor. "Want A New BMW? A UK Startup Says You Should Subscribe Rather Than Buy". Forbes. Retrieved 2018-06-27.
  2. "UK car subscription company Drover rides off with funding - PE Hub". PE Hub. 2018-03-15. Retrieved 2018-06-27.
  3. "Drover gets £5.5m for its online car marketplace". UKTN (UK Tech News). 2018-03-15. Retrieved 2018-06-26.
  4. "Drover and BMW announce mobility partnership". www.fleetnews.co.uk. Retrieved 2018-06-26.
  5. "BMW Group to offer cars on subscription basis with Drover - Car Dealer Magazine". Car Dealer Magazine. 2018-04-11. Retrieved 2018-06-26.
  6. Tucker, Charlotte (2020-12-17). "British used-car startup Cazoo to acquire Drover, a leading car subscription service". EU-Startups. Retrieved 2021-01-07.
  7. "In detail: Cazoo founder lays out savage cuts to online used car dealer in investor call". Retrieved 2022-10-18.
  8. "The Future of Cars: Are flying vehicles just a sci-fi fantasy?". ISSN 0307-1235. Retrieved 2018-06-27.
  9. "Drover picks up £5.5M funding for its car subscription marketplace ñ TechCrunch". techcrunch.com. Retrieved 2018-06-27.
  10. "BMW and Mini enter car subscription sector". Fleet World. 2018-04-10. Retrieved 2018-06-27.
  11. "One in ten drivers may choose Netflix-style car subscription within decade". Sunday Times Driving. 2018-05-29. Retrieved 2018-06-27.
  12. Car Subscription Brisbane
  13. "BMW and Mini launch pay-as-you-go subscription service | Autocar". www.autocar.co.uk. Retrieved 2018-06-27.
  14. "Karmo".
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