Investment
A South African Startup Will Rent Your 'Spare’ Car so it can be Used by Uber Drivers By Bombi Mavundza
SOUTH
AFRICAN STARTUP FLEXCLUB (https://flexclub.co.za) lets you rent out your 'spare' or unused vehicle - and get paid for it. After three years, the company will buy the car from you if you so wish. The vehicles are, in turn, rented out to Uber drivers who cannot afford to buy vehicles of their own. According to Flexclub co-founder, Tinashe Ruzane, the Uber drivers also have the opportunity to buy the vehicles from them. Speaking to Business Insider South Africa, Ruzane says they have up to R50 million worth of cars rented out to them since their launch last year. Growing up in Doornpoort in Pretoria, Ruzane was introduced to Uber while working on a social enterprise initiative in Soweto in 2013. "They approached us during that time and I got curious and started reading up on them," he says. Impressed by the idea, he bought his own vehicle and rented it out to a driver. He noticed that a lot of would-be drivers could not secure vehicle finance. He then approached Uber with an idea to, hopefully, change that. "There was a lot of data that they had on the drivers that if used properly could help the drivers clear their records, making them trustworthy for a vehicle loan." Uber hired him in 2015 and in 2016 he moved to Amsterdam where he worked as their Head of Vehicle Solutions in charge of Europe, the Middle East and Africa. While in Amsterdam, Ruzane says he realised that South Africa's problems were not unique and decided to return home and create a platform that would assist those wanting to be part of the ehailing industry. He launched Flexclub in 2018. Ruzane explains that the vehicles must, of course,
55
November-December 2020
f o l l o w U b e r X rules. To be part of FlexClub, the vehicle's mileage must be less than 60,000 kilometres, must be a 2013 or newer sedan. Those renting out their vehicles to Flexclub get paid R4,500 a month. Over three years, car owners can expect to have earned over R200,000. "We pay the owners directly, so even if the Uber driver does not make a lot in that month, they are still guaranteed their money." "We also insure the vehicles and cover all the maintenance costs so that the owners are not overburdened." Ruzane has been nominated for the FNB Business Innovation Awards. He currently has over 400 registered vehicles on the platform and hopes to have thousands registered vehicles globally over time. www.businessinsider.co.za/the-startup-flexclubwill-rent-your-vehicle-to-be-used-by-uberdrivers-2019-11 DAWN
www.africabusinessassociation.org
