Splend CEO on why the vehicle rental startup needs to diversify away from Uber

SPLEND, Australia's largest share economy vehicle network and an Uber preferred partner, has secured a strategic investment from Element Fleet Management (TSX: EFN) to support the next phase of its global expansion plans.

Element secured a 12.5 per cent stake in the fast-growing Splend, which aims to have $220 million in vehicles under management by 2019. The deal follows investment in Splend by Investec Australia Limited in December 2016.

Splend founder and CEO Chris King says Element's investment in the two-year-old business will propel the next phase of Splend's global growth plans, including immediate launches in Canada, Mexico and the United Kingdom.

As the premier supplier of rental vehicles for on-demand rideshare and delivery services including Uber, King says these markets offer a new, and growing, source of revenue.

The two companies have an existing business relationship with Element providing a host of fleet management services to Splend and its drivers in Canada, Mexico, Australia and New Zealand. Services include vehicle financing, maintenance, registration, telematics, accident management, and safety solutions.

Splend currently owns and manages more than 1,700 vehicles, operating in Australia's major cities of Sydney, Melbourne, Brisbane, Perth, and Canberra, with additional vehicles recently launched in Toronto, Mexico City, and London. The Element investment is expected to help Splend achieve its target of more than 15,000 vehicles under management worldwide by late 2019. Read more

Ben Hall - Business News Australia - 15 Jan 2018