Kiwi car share firm strikes $30m deal ahead of Auckland expansion
Wellington-based car-share company Mevo and the Ebbett Group automotive group have inked a $30million deal that will help the former with its expansion plans. The news comes as Mevo prepares to expand to Auckland. It’s set to launch its service to New Zealand’s most populated city later this year.
The deal also sees Mevo take over Ebbett’s in-house car-share service, Loop. The acquisition of Loop — a Hamilton-based service — means that Mevo will soon have strong representation across the North Island’s three major centres.
“The vehicle supply agreement with Ebbett and the Loop acquisition will play a large part in the next phase of Mevo's explosive growth and support expansion in Wellington,” Mevo chief executive and founder Erik Zydervelt told RNZ.
“This is also a key milestone ahead of Mevo's entry into Auckland and Hamilton later this year. We continue to invest into the growth of the company, but we know that at any time if we needed to we could scale back and run a profitable company.”
The firm boasts that it’s the first free-floating climate-positive ride-share firm in Australasia. Customers can find themselves a Mevo vehicle’s location using the company's app, book its use up to 30 minutes in advance, and then when finished with it simply drop it off anywhere in a set city service area.
The service is commonly used in Wellington for those planning one-way trips to the airport, and offers pricing based from a minute-by-minute basis to full day allowances.
Mevo has recorded over 100,000 trips among users since 2016, which it claims has helped remove 366 tonnes of carbon from the atmosphere, due to its environmentally friendly fleet. This is currently made up of Volkswagen Polos and Audi A3 e-tron plug-in hybrids. The firm hasn’t confirmed whether the deal with Ebbett’s will facilitate a more diverse vehicle fleet.
It’s the second big deal that Mevo has struck in the last three years. In 2018 it announced a deal with fuel company Z Energy, the latter initially purchasing a 12 per cent stake in Mevo before upgrading to a 31 per cent ownership stake.