South African-born peer-to-peer car-sharing platform CarShareNova has entered the local e-mobility market, hoping to reinvent the car rental industry.
Founded by Themba Mgimeti, an engineer and former manager at Bolt, and Lebogang Mabala, software engineer and employee at Naked Insurance, CarShareNova’s mission is to turn vehicles into income-generating assets for owners, much like how Airbnb generates income for home-owners.
The car rental platform allows vehicle owners to earn income by renting out their premium cars to verified renters through a fully-digital platform.
By integrating artificial intelligence (AI), on-demand insurance and smart payments, CarShareNova says it is democratising car rental and vehicle ownership within SA’s mobility landscape.
The web and mobile application allows individuals to rent premium cars directly from other vehicle owners through a marketplace model.
“CarShareNova redefines car rental by removing the inefficiencies and overheads of traditional rental models, by making it affordable, using smart insurance and empowering vehicle owners to use their vehicles to earn money,” explains Mgimeti.
“For years, people have said cars aren’t assets, yet car rental companies have made billions. We’re changing that by creating a system where your car pays for itself and works for you.”
CarShareNova’s platform recently went live with over 250 listed premium vehicles, valued at more than R200 million collectively. The vehicles are insured by a commercial insurance product underwritten by Old Mutual that activates at pickup and deactivates upon return of the vehicle.
The platform integrates AI and a smart payment solution to ensure a smooth process between the renter and vehicle owner.
Renters start by creating an account on CarShareNova and once they have registered, they can proceed to use the search filters to find the car that suits their needs.
Once they have found their ideal vehicle, they enter their booking details and click “rent now” to send a booking request to the owner. Owners have up to 24 hours to respond.
Upon approval, the renter’s bank account is debited, and CarShareNova securely holds the funds until the handover takes place.
The renter then arranges to meet the owner for vehicle pickup or delivery at a convenient location. Upon meeting, a quick inspection of the car is conducted with the owner before handover.
The renter pays a fee for each day the vehicle is rented.
“CarShareNova retains 18% of each transaction processed through the platform. A 3% booking fee is charged to the renter and a 15% platform fee is deducted from the host’s pay-out,”Mgimeti adds.
“This structure covers operational costs, insurance facilitation, verification and customer support. Owners earn 85% of their listed rental price, less the daily commercial insurance fee. They have full control over pricing and availability, allowing them to generate meaningful passive income from their vehicles whenever they are not using them.”
Owners are able to set a competitive rate that reflects their car's value.
“Vehicle owners and renters are verified through technology that analyses several data sets, including a government ID and driver’s licence, biometric selfie matching, credit and affordability checks, vehicle validation and ownership verification.
“The owner is also at liberty to request additional information and ask clarifying questions. Once they are satisfied, they can approve the booking and start earning,” states Mgimeti.
Share