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As for outages, there probably isn’t any company more sensitive to adjustments because of a pandemic than car rental. And with the electric vehicle revolution already underway, the confluence sets the bar for the two founders to invest in credit stocks.
The two boys, Jon Alain Guzik and Rodrigo de Guzman, founded the electric car rental company of choice with the question: “Why own when you can borrow? It is a subscription service that provides used and all-electric vehicles.
The loan of shares in this building is called SAFE, an undeniable modified agreement for long-term stocks, in which an investor invests in money in a company and obtains borrowing shares at a later date, in relation to an express event. Regulators consider Crowd SAFE to be more suitable for crowdfunding. The agreement reached in partnership with Wharton Impact Venture Associates.
If you think Tesla stocks (NASDAQ: TSLA) or Nio (NYSE: NIO) were expensive, what about the possibility of getting one of your EV models?
Borrow’s investment thesis is based on the confidence that electric cars are expensive and confusing customers. At the same time, drivers’ desires and dreams are changing. In particular, Generation Y drivers do not need long-term commitments and are comfortable with flexible subscriptions. As a test, take a look at the demographic’s love story with Spotify (NYSE: SPOT) and Netflix (NASDAQ: NFLX).
Borrow’s style to simplify electric car rental offers a unique turnkey subscription solution. Originally operating in Los Angeles, consumers borrow to purchase an all-electric used car for periods ranging from 3 to nine months. At the end of this subscription period, consumers can renew, update, or cancel their subscription. There is no down payment.
But what cars can you rent? And how much does it cost? They’re very questions asked.
Borrow’s fleet comes with Tesla Model S, BMW i3, Fiat 500e and Smart ForTwo Electric Drive. The loan grants those cars through 4 subscription points. At the low end is the Campus point from 3 months to $299 consistent with the month for a Smart ForTwo Electric Drive. At the other end is the Platinum point, which puts the visitor behind the wheel of a Tesla Model S for $1499 per month for 3 months. Payments come with the constant consistent with Borrow’s monthly rate and insurance.
There are also some extra payments. It turns out that Airbnb has encouraged loans: it charges consumers a $50 cleaning payment once they have paid attention. Borrow estimates a margin of 39.1% in 24-month subscriptions.
Borrow has been competitive enough by adding key partnerships to grow your business and keep your prices under control. One of them is with Goodyear Tire (NASDAQ: GT). The home tire call collaborates with your tire maintenance solution waiting for automatically connected fleets to wait for and plan for mandatory tire maintenance and replacement. The goal of this partnership is to maximize the availability of the Borrow fleet.
Earlier this year, Borrow named Built in LA one of the 50 startups to follow in 2020.
As with any investment decision, the higher the due diligence, the smarter it will be. With Borrow’s personal investment campaign, I discovered that the company’s discussion on the Republic platform is very revealing… and refreshing in the preference of discoverers for percentage ideas, answering questions and immersing themselves in the weeds of their market and supposed operations.
In this type of round trip, a prospective investor would possibly have a genuine concept of equipment lending. As any successful venture capitalist will tell you, seeing the founding team in action and under the harsh friendliness of the crowd gives you a vision you can make or undo an investment decision.
Robert Lakin is an experienced and monetary editor, after fintech, agtech and real estate startups. He was editor-in-chief of emerging markets for Bloomberg News in Tel Aviv. Collaborate on the blog Powered through Battery. At the time of writing, Robert does not own any of the above titles.
Investing through equity and crowdfunding of real estate or asset tokenization requires a high degree of threat tolerance. Despite what individual corporations may promise, there is a chance to waste some or all of their investment. These threats include:
1) Increased failures 2) Risk of fraudulent activity 3) Lack of liquidity 4) Economic slowdown 5) Lack of education for investors
Read more: Risks of private investment
Investing in stock loans for electric vehicle subscriptions first gave the impression on InvestorPlace.