CAZOO, which retails used cars online and delivers to buyers via transporter, has acquired the car subscription service provider Drover.
Drover offers users a single monthly payment to include car, maintenance, service, tax & breakdown cover. In July, Drover raised £20.5m in a round of funding to help the service expand in Europe.
The amount paid by Cazoo was undisclosed.
Cazoo said it had planned to launch its own subscription service late in 2021 but said the acquisiton wil accelerate its plans in the fast-growing Cars-as-a-Service (CaaS) market.
Alex Chesterman (pictured above), the Founder and CEO of Cazoo, said:
“The acquisition of Drover will enable Cazoo to rapidly expand into car subscriptions and give our customers the option of purchasing their next car outright, financing it over a multi-year period or subscribing for a shorter, more flexible period. I am looking forward to welcoming Felix and his team to Cazoo and continuing to deliver the most innovative and best options for consumers across the UK looking for their next car.”
Felix Leuschner, Founder & CEO of Drover added:
“I am very much looking forward to accelerating the growth of car subscriptions as part of Cazoo and to continuing to develop the business beyond the UK.”