Des Hang, CEO & Co-Founder, Carbar, Presented 'The Netflix of Cars: Is Australia Ready for Car Subscription?'

1. Carbar 2019 #1
The “Netflix of Cars”
Is Australia Ready for Car Subscription?
Presented by
Desmond Hang
CEO & Founder
Photo credit : Eddie Pham

2. Carbar 2019 #2
Exec Summary
01 Background of Carbar
02 Changes in Mobility
03 Changes in Vehicle Ownership
04 Rise of Vehicle Subscription
05 Under the hood of Carbar
06 What’s next?
07 Questions/ Discussion

3. Carbar 2019 #3
Founded in 2016
40 Employees
Car Subscription, Virtual Dealership &
CarbarConnect
Collaboration with Jaguar-Land Rover,
Caltex & Interleasing (McMillan
Shakespeare)
01 Background of Carbar
Carbar Overview

4. Carbar 2019 #4
02 Changes In Mobility
Mobility Is Changing
Opportunities
01.
Mobility-As-A-Service
02.
Telematics
03.
Digital Dealership
Source: CBinsights Mobility Trends 2019

5. Carbar 2019 #5
02 Changes In Mobility
Buying And Selling A Car Can Be
Time Consuming And A Real Hassle

6. Carbar 2019 #6
Photo from “New & Used”.
An Australian Film By Nick Myall about
a dodgy car dealer
02 Changes In Mobility
Many Consumers Are Put Off By
Pushy Salespeople Incentivised
By Commision

7. Carbar 2019 #7
02 Changes In Mobility
Lengthy Lock-in Contracts Can
Seem Overwhelming

8. Carbar 2019 #8
02 Changes In Mobility
Multiple Ongoing Running Costs
Can Add Up

9. Carbar 2019 #9
02 Changes In Mobility
The Rate Of Depreciation Can Be
A Shock To Many

10. Carbar 2019 #10
03 Changes In Vehicle Ownership
Perception Of Vehicle Ownership
Is Changing

11. Carbar 2019 #11
What is Vehicle Subscription?
An on-demand vehicle subscription service
that provides a complete alternative car
ownership experience with flexibility and
commitment-free benefits.
04 Rise of Vehicle Subscription
As A Result,
Vehicle Subscription Is On The Rise

12. Carbar 2019 #12
04 Rise of Vehicle Subscription
How Does Vehicle Subscription Differ
From Traditional Ownership & Rental
Rental
None
Yes
Yes
Expensive in the
long term
Lock-in Term
Flexibility
Convenience
Costs
Lease
3-5 Years
No
More documentation
More expensive than
buying outright
Carbar Subscription
None
(2 weeks return notice)
Ability to switch cars
more frequently
Home deliveries and
pick-ups are available
Cost savings &
no down payments or
finance charges.

13. Carbar 2019 #13
04 Rise of Vehicle Subscription
Where Does Vehicle
Subscription Fit Within
The Mobility Ecosystem?
Traditional
Dealerships & OEM
Corporate Car Leases B2B Subscription
Vehicle Subscription
Local Transportation Disruptors and sharing economy
New

14. Carbar 2019 #14
04 Rise of Vehicle Subscription
Vehicle Subscription Landscape
Canvas Fair Flexdrive Carma Drover Wagnex Cluno.com
Yoyo Less Drive Flow Revolve Upshift Royal Klasse Mobiliti Driveit Away Condor
Drive Keeler Luxcar Flexdrive Light Park Place Select Drive Germain Flexwheels Fast Lane
1 - Super Luxury OEM Program
3- Main Stream OEM Program
8 Luxury OEM Program
7 Mobility Provider Programs
7 Dealer Programs
12 Tech (Startup) Programs
8 Software/ Platform Providers

15. Carbar 2019 #15
04 Rise of Vehicle Subscription
Global Growth of Vehicle Subscription
3
Years Old
US1.5 Billion
Raised
3
Years Old
27
Markets In US.
20,000
Cars Nationally
£5.5 million
Raised
US UK

16. Carbar 2019 #16
04 Rise of Vehicle Subscription
And Australia?
19.2 million
Registered vehicles in 2018
Estimated Less Than 0.1% Car
subscription market.
Forbes
by 2025, 10% of the auto sales will be vehicle subscription.
That’s 1.9 million cars in Australia

17. Carbar 2019 #17
05 What’s Next?
What is Carbar Focusing On?

18. Carbar 2019 #18
05 What’s Next?
Partnering With Dealerships & OEM’s
Help shift aged stock
Longer term test drive
Up-sell to Carbar customers
Make brand more accessible
Depreciate stock
Photo credit Elenberg Fraser
https://elenbergfraser.com

19. Carbar 2019 #19
05 What’s Next?
Building A Seamless Customer Experience
Our digital experience comes first
40% of Cabar is tech team
50 changes each month to the site
One point of contact for the customer
Building out a customer success team

20. Carbar 2019 #20
05 What’s Next?
It’s Resonating With Our Customers
Net Promoter Score
82.1
Google Review
5.0

21. Carbar 2019 #21
05 What’s Next?
Catering For Different Needs
Persona A
- Car enthusiast
- Wants to try lots of different options
- Often second car
- Ultimate flexibility
- Happy to spend a little more
Persona B
- Different type of vehicle
ownership experience
- A replacement for an existing car
- Doesn’t like the lock in contracts
of traditional finance.

22. Carbar 2019 #22
05 What’s Next?
Two Products To Accommodate
Subscription plan 01
Shift
Ultimate Flexibility & Switch
Change Car Flexibility
Insurance
Maintenance
Registration
Roadside Assistance
Warranty
Flexibility
Insurance
Maintenance
Registration
Roadside Assistance
Warranty
Subscription plan 02
Cruise
Experience ownership without commitment
Setup Fee
$2000 (Fully refundable)
Change car every 3 months Keep the same car
Setup Fee
5% Up-front (Non refundable)

23. Carbar 2019 #23
05 What’s Next?
Real World Examples
BMW 335i
$349pw
Holden Commodore
$309pw
Renault Clio
$177pw
Nissan Micra
$169pw
Holden Commodore
Average Weekly Stock Holding Cost
- $228pw *
* Forecast generated from Carbar’s dealership calculator
Comparing to
Inventory sitting on premise

24. Carbar 2019 #24
05 What’s Next?
Retention Strategy - CarbarConnect

25. Carbar 2019 #25
05 What’s Next?
What Are Our Predictions For The Future
Of The Auto Industry / Subscription?
iPhone Moment
Growth of the EV market
Rise in autonomous vehicles

26. Carbar 2019 #26
06
Questions & Discussion
We’re always keen to share our thoughts
Always looking to hire new talent
Form new partnerships
Get in touch
mumbrella@carbar.com.au