Online car retailer Cazoo has agreed to acquire Drover, the UK-based car subscription platform, for an undisclosed fee.
Founded in 2016, Drover has grown to a team of over 100 across London, Lisbon, Paris and Bucharest. Drover offers a flexible and hassle-free alternative to car ownership, with a single monthly subscription fee which includes the car, maintenance, service, road tax and breakdown cover.
The deal will combine Cazoo’s brand, platform and funding with Drover’s expertise and relationships in car subscription and, once integrated, will enable Cazoo to give its customers the option of purchasing, financing or subscribing to the thousands of cars on its platform.
Drover also has a nascent and fast-growing subscription business in France which will form the launchpad for Cazoo’s planned European expansion as it looks to both mirror the offering in France to the wider Cazoo proposition and push into other markets.
Cazoo had planned to launch its own subscription service in late 2021 and this acquisition will now accelerate its plans in the fast-growing Cars-as-a-Service (CaaS) market.
Alex Chesterman, founder and chief executive 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 and chief executive of Drover, said: “I am very proud of what we have achieved with Drover in such short time. We have built a great team and developed a sizeable and loyal subscriber base with strong revenues. Alex and the team at Cazoo have a very clear strategy and vision and 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.”
In October, Cazoo raised an additional £240m in funding, taking the total investment in the firm to £450m.