The table below shows how Co Cars expects to deploy the target share capital raise of £600,000 in the next financial year (FYE2021).
The investment being sought is focused on:
- Operational efficiencies - improvements to internal infrastructure in the first year in advance of the expansion of the fleet in the medium term;
- Improve service offer and efficiencies – including software development;
- Increased reach - 50 new e-bikes and associated charging hubs (purchased) into Exeter; and
- Increased reach - 25 electric cars (leased) and associated charge points, with 20 part funded from the Innovate UK grant.
As at February 2020, Co Cars has 30 cars and just under 100 bikes in Exeter. The business expects to add more cars and bikes by the end of this financial year (31 March 2020) before expanding significantly next year so it will have more than 55 cars and 150 e-bikes in Exeter. Co Cars expects to double the cars it operates to over 100 by the end of the 2024 with, in addition, over 250 e-bikes.
Following the investment and deployment, there will additionally be investment in technology to enable integration with other transport services. This investment will support future expansion, drive increased revenue and reduce costs through:
- App-based booking systems, single ticketing solutions and fleet management software which will enable the customer to move seamlessly between different modes of transport;
- These will be smartphone enabled to facilitate improvement and efficiency savings in the back-office processes (e.g. reducing the time required to support customers, time required to answer queries, management of maintenance field workforce); and
- Provision of much better back end data on customer transport modes.
The investment will also allow Co Cars to significantly expand its marketing campaigns, PR, events, advertising and member engagement activities to ensure it is promoting its services and attracting new members across the whole of the network.
The minimum capital raise is for £100k. This will still allow the Society to significantly grow and scale the Co Cars business. In this scenario, the priority would be on adding new electric cars to the fleet and improve the IT infrastructure and staffing.