Cazoo has agreed a long-term partnership with leasing company Ogilvie Fleet to provide end of life vehicle solutions.
As part of the exclusive agreement, Cazoo will provide Ogilvie with inspect and collect services across the UK, in-house technology solutions to assist with damage recharging and the disposal of more than 18,000 vehicles at the end of contract.
Both company’s stand to benefit from the partnership, with improved customer experience via technology for Ogilvie's customers, efficiencies within Ogilvie's remarketing process and vehicle supply for Cazoo's long term growth.
The deal follows Cazoo’s acquisitions of SMH Fleet Solutions and Smart Fleet Solutions, which give it nationwide infrastructure and an expert team to offer a full end-to-end service to fleet owners across the UK.
Gordon Stephen, Ogilvie Fleet’s managing director, said: “Aside from the move being a sound financial decision, our new relationship with Cazoo also significantly enhances our customer and driver interactions with more streamlined processes, as well as many new add-in service benefits, such as Amazon-style delivery and collection notifications direct to a driver’s phone with live ETA’s.
“Importantly, our unique approach to fairness and transparency with any reconditioning costs is completely maintained -and in fact enhanced no less – through a greater focus on imagery and speed of advice. All in all it is a win-win-win for Ogilvie Fleet, Cazoo and our valued client base.”
Jim Hannah, Ogilvie Fleet’s operations director, added: “The whole of the car buying market has seen incredible change in the past two years and we believed the time was right to investigate how we could embrace these changes in our own disposal routes. We were also keen to look at how we can improve processes, enhance efficiency and also add further value for our clients.
“We carefully considered a number of new ways of managing this critical element of our business and it soon became clear that partnering with Cazoo would offer a number of substantial benefits for Ogilvie Fleet and our clients. We are delighted to be working with them and to once again be leading our industry with new and innovative ways to work.”
Cazoo recently announced the acquisition of Swipcar, a Spanish digital car subscription business, which accelerates its plans to launch in Spain and Italy.
It followed that of online commercial vehicles retailer Van365 ahead of its expansion into the van market later this year.
Last month it published financial results for the first half of 2021 which revealed that the £5 billion-valued online car retailer had delivered a £69m adjusted EBITDA loss in the period.
Its results for a period, which saw used cars appreciating in price at an unprecedented rate due to supply shortages showed that, despite revenues up 521% to £248m as gross margin rose 9ppts, it failed to achieve profitability in the period to June 30.