Insurance Australia Group Limited (IAG), Australia’s largest general insurer, has acquired a majority stake in digital car subscription and trading platform Carbar.
Carbar, established in 2016, is Australia’s first car subscription platform and caters to a growing customer appetite for alternative forms of vehicle ownership. According to its website, it offers car subscriptions starting at $109 per week, which includes insurance, registration, roadside assistance and maintenance.
IAG’s investment reflects the insurer’s focus on emerging mobility trends, which includes increased demand for flexible car subscription services. Through Carbar, IAG can better understand these changing mobility trends while providing new sources of value to customers.
Carbar plans to expand its vehicle subscription model while supporting the growth of its reliable online car trading platform that removes the uncertainty that is often associated with buying a new or second-hand car. IAG Executive General Manager of Innovation James Orchard said: ‘We are thrilled to partner with Carbar, which will play a central role in our approach to the future of insurance and the changing mobility needs of our customers.”
“Carbar has pioneered the car subscription model in Australia. We look forward to combining its world class digital capabilities with IAG’s assets and scale to provide new mobility experiences for customers today and in the future,” he added.
“IAG’s support will be instrumental in growing and developing our business,” said Carbar CEO and co-founder Desmond Hang. “We look forward to working closely with its team to further expand Carbar and grow our car subscription capabilities.”
Carbar launched in Melbourne in 2016, expanding to Sydney in June 2019 and now has plans to expand across Australia in 2020.
This article courtesy of Russell Thrall III, publisher CollisionWeek. Check out their website at: www.collisionweek.com.