Cazoo branches into car subscriptions with Drover acquisition
Online car retailer Cazoo is to acquire car subscription platform Drover, accelerating its planned launch into subscription services as it looks to become the ‘Netflix of cars’.
Founded in 2016, the Drover scheme is now in operation across the UK and offers a flexible alternative to car ownership. For a single monthly subscription fee, customers are provided with a car, maintenance, service, road tax and breakdown cover.
Both the Drover brand and platform will now be integrated into Cazoo, meaning that Cazoo customers will be given the option of purchasing, financing or subscribing to the cars on the Cazoo site.
Cazoo, which already pitches itself as the ‘Amazon of cars’, said it had planned to launch its own subscription service in late 2021 and this acquisition will now accelerate its plans, also turning it into the ‘Netflix of cars’.
It will also enable the company to springboard its planned European expansion thanks to Drover’s growing subscription business in France. As with the UK, the Drover subscription services will be carried over into Cazoo’s offering in France and then used as a blueprint to push into other markets.
Alex Chesterman, founder & 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.”
It’s the latest development for Cazoo, which was launched in 2019 by Chesterman, also founder of the property website Zoopla. Last month saw Cazoo reach the milestone of delivering its 10,000th car since its launch and it’s generated revenues of over £150m in its first year, grown to a team of over 800 people and achieved a valuation of over £2bn. The business is also now rapidly rolling out its Customer Centres across the UK, enabling customers – including future car subscribers – to collect cars within 72 hours.
The acquisition will also see the Drover team, including founder and CEO Felix Leuschner, remain with the business.
Chesterman added: “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.”
Felix Leuschner commented: “Alex and the team at Cazoo have a very clear strategy and vision and I am very much looking forward to accelerating the growth of car subscriptions as part of Cazoo and to continuing to develop the business beyond the UK.”