A German Car-Sharing Start-up Innovates the Model

There are a number of new car-sharing start-ups around Germany, including Drivy, Getaway and Blablacar. These companies rely on private individuals for their business model. Azowo, on the other hand, offers car sharing for company vehicles. Among the company’s first customers are banks and construction companies.

There are two million vehicles available for use in Germany which are used for 1.5 hours per day, on average. As such., there are 22.5 hours when the company car does nothing, and still costs money.

Peter Jegutzki wanted to create a business model out of this problem. Together with his two co-founders he started Azowo. The start-up is a car-sharing company that wants to get people to share cars but with a special feature, i.e. Azowo focuses on company cars.

Companies can equip their company car fleets with telematics units. The vehicles can then be used by all employees without a key. Azowo promises more efficiency, more capacity utilisation and ultimately less costs because fewer vehicles would be needed at any one time.

Surprisingly, this start-up with its company-oriented model still has very little competition. For private individuals there are several well known car-sharing providers such as UberPool, Blablacar, ZipCar or the platforms Flinc and TwoGo.

See our recent post on ride-sharing: Ride-sharing Start-ups in Germany – A Brief Overview

Some of these companies also cooperate with individual companies, but the most important customers are private individuals. Getaway and Drivy also work in Berlin with telematics units, which are installed in private vehicles and thus enable the sharing of their own car. However, as the main competitor, the Azowo founder sees Ubeeko, a French brance of the company Europcar, which also offers company car-sharing in France, Great Britain, Belgium, Spain and Germany.

Azowo currently works with 12 companies from the industrial, construction and financial sectors using an app and a telematics unit. The company is happy with this number, according the founder, Jegutzki. After all, Azowo is only five months old. Like his two co-founders, Jegutzki comes from the industry and has managed 4,000 vehicles for a large car rental operator and wants to build up a B2B business. He wants to convince customers with the efficiency argument, above all.

“Up to 40 percent savings are possible,” says Jegutzki.

The company also makes money by renting its telematics units even if that means that revenue will fall as soon as the customers reduce the number of their company cars thanks to the service.

“We [will] compensate for this through growth,” says Jegutzki confidently.

“The prices for the telematics boxes are variable – depending on the customer’s requirements.”

The cheapest solutions are available from 29 euros.

Photo credit: http://www.colourbox.com. Material used in the preparation of this article has been drawn from Gruender Szene.

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