AAP Finance

Hyundai teams with car service Carly

By AAP Newswire

South Korea's Hyundai Motors is partnering with Australian car subscription service Carly, making another bet on further change in how people use and own vehicles.

A subsidiary of ASX-listed drivemycar.com.au owner Collaborate Corporation, Carly offers flexible car subscriptions with a minimum one-month term.

Hyundai's spend follows last month's $6.2 million investment in Aussie car-sharing start-up Car Next Door, which lets people rent their neighbour's vehicles by the hour or day.

"The future of personal mobility will not be based solely around vehicle ownership, and Hyundai will adapt to changing consumer demands," Hyundai Motors Australia chief executive JW Lee said.

Launched this year, Carly offers flexible "car subscriptions" starting at around $500 a month that customers can pause or switch as they want.

Similar services are offered in Australia by Melbourne-based startup Carbar, FlexiGo (in southeast Queensland), and Hellocars.

"It's long-term access to cars, but it's not a long-term financial commitment," said chief executive Chris Noone.

Carly is already working with Suttons Motors and Turners Automotive Group but Hyundai is the first manufacturer to support a vehicle subscription service in Australia across multiple models in its new vehicle range.

Mr Noone said the partnership would offer another source of revenue for Hyundai's 172 Australian dealers, who would retain ownership of the vehicles under Carly's capital-light business model.

Mr Noone said it was all part a generational shift towards the sharing economy.

"The younger generation, Generation Y and Generation Z, they don't have the same attachment to owning assets as the older generation," he said.

"They see ownership as a burden."

Collaborate shares were up 44 per cent to 1.3 cents on Friday morning before trade was paused for the company to clarify that it couldn't estimate the financial impact of the partnership, other than believing it would be "material".