THE online used car retailer, Cazoo, has bought car subscription service provider Drover.
Cazoo said it had planned to launch its own subscription service late in 2021 but said the acquisition will accelerate its plans in the fast-growing Cars-as-a-Service (CaaS) market.
Drover offers users a single monthly payment to include car, maintenance, service, tax and breakdown cover.
It also the white lable provider for some OEM offerings such as Jaguar Land Rover’s Carpe.
The integration of car subscriptions and used cars suggests Cazoo will be targetting consumers who are already comfortable with pay for use products such as PCH, but at a potentially lower price point thanks to the asset value.
Alex Chesterman (pictured above), the founder and CEO of Cazoo, said:
The acquisition of Drover will enable Cazoo to rapidly expand into car subscriptions and give our customers the option of purchasing their next car outright, financing it over a multi-year period or subscribing for a shorter, more flexible period. I am looking forward to welcoming Felix and his team to Cazoo and continuing to deliver the most innovative and best options for consumers across the UK looking for their next car.
Cazoo delivers its used cars via transporter to new customers.
Ralph Morton is the leading journalist in the leasing broker sector and editor of Broker News, the website which provides information and news for BVRLA-registered leasing brokers. He also writes extensively on the fleet and leasing market in both the UK and Europe.
