An all-in-one car subscription service launched by London-based Drover has seen its “mobility as a service” venture given a £5.5m funding boost in a recent funding round.
The successful funding round was co-led by venture capital firms Cherry Ventures, Partech and BP Ventures, with continued participation from existing investors Version One and Forward Partners which had previously invested £2 million in Drover’s pre-seed round.
Drover said that the extra funds will be used to scale the online business further and invest in its engineering and product team.
Christian Meermann, founding partner of Cherry Ventures, and Romain Lavault, general partner at Partech Ventures, are joining Drover’s board of directors, alongside Boris Wertz of Version One and Drover’s founders Felix Leuschner (chief executive) and Matt Varughese (chief technology officer) as part of changes to the business.
Meermann said: “We are excited to back Drover because they are building the infrastructure and the customer experience that will change how all parties think about mobility.
“At Cherry, we believe that car-ownership will undergo massive changes as consumers prioritise flexibility, affordability and convenience.
“We are confident that the team at Drover will rapidly grow car subscription in the UK and beyond by building tech-enabled operational excellence for their supply partners while creating tremendous value for their customers."
Drover claims to be “shaping the future of mobility by building a new type of mobility-as-a-service platform that streamlines the traditionally fragmented, and complex process of getting and maintaining a car”.
Volvo is among OEMs pioneering similar all-in-one payments, however, packaging vehicle repayments, maintenance and insurance into a single package as part of its Care By Volvo package, so far launched in conjunction with the new XC40 SUV and forthcoming V60 estate car.
Drover’s platform gives users access to cars of their choice for one all-inclusive monthly subscription price, as an alternative to the rigidity of getting a car through existing car finance, or lease options.
With a monthly subscription fee, Drover’s user proposition rolls the entire cost of car ownership into one price, including the cost of the car, insurance, maintenance, servicing, taxes and breakdown cover
Users can swap, upgrade or downgrade their car monthly or just cancel altogether, with no additional costs.
Drover does not own any cars, but works with over 100 fleet partners to ensure a large and comprehensive selection of new and used vehicles on its platform.
The business said that its fleet partners include Europcar, Avis Budget Group and Hertz, car dealership groups and OEMs such as BMW Group UK.
Leuschner said: “At Drover we’re rethinking car ownership itself, a space where very little innovation has happened to date. We are building an integrated end-to-end platform that looks to the future, and prioritises meeting the demands of the modern-day customer.”
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