The Australian luxury car rental company Live For Later announced its acquisition of luxury leasing company Zoho for $1.4 billion in early 2017.
Zoho is the latest luxury leasing and car rental startup to gain a foothold in the global car market, with the acquisition giving it access to a global pool of potential investors.
Zho’s services include leasing cars for the high-end of the market, but it also offers an alternative to leasing cars on-demand or for short periods of time.
Zoho said the acquisition will give it access “to an extremely large pool of prospective investors”, but declined to provide a breakdown of potential funding sources.
“The acquisition gives us access to an extremely vast pool of future investors in our portfolio,” Zoho chief executive Paul O’Neill told the Australian Financial Review.
“Our existing investors will continue to have access to our portfolio and, in return, we will continue providing them with all the services they have come to expect from our platform.”
The Zoho acquisition was announced just days after the launch of Zoho’s mobile app, Zoho Car, which was designed to allow people to book cars, pick them up and drive them on their own.
“Zoho Car is a very simple, simple way for people to get around town and to take advantage of Zogo’s incredibly popular car rental service,” said Zoho CEO and founder Mark Zabriskie.
“It’s got a very nice feature called ‘Live for Later’, which allows people to lock their car up for a certain amount of time, and then they can check out their car and then book it out for later.”
Mr Zabreights statement about the acquisition came in the same week that Uber was acquired by US-based private equity firm Kohlberg Kravis Roberts, and it also follows a similar move by American car rental firm Hertz in December 2016.
Zabreight has been around since 2009, but Zoho has since grown into a global brand and acquired other luxury car leasing and rental companies, including CarRent, Car2go, L2G and Xolo.
The acquisition comes just a few weeks after Zoho reported a $1 billion loss in its most recent financial year.ZHO CEO Paul Ollie told the Financial Review the company’s mission is to help people find a new way to live.
“We want to help them find the car of their dreams, to help find the next thing they want to do with their life,” he said.
“So that’s the kind of thing that we want to deliver.”