Drive smart! With Carguru!

Luminor has provided 950k EUR financing to Carguru.

“Luminor” has provided financial leasing of 950k EUR to “Carguru”, the provider of carsharing services, to increase their car fleet. Additional vehicles will allow making the service more accessible and will give users new mobility solutions and sustainable cars.

The cooperation of Luminor and Carguru has started in 2017. This year “Carguru” car fleet will be increased by 46 hybrid engine cars. This will facilitate more sustainable and affordable mobility within the city and outside of it.

“The funding that was provided, has enabled “Carguru” to offer citizens the opportunity to take advantage of sustainable car rental opportunities – hybrid cars and electric cars that help decrease harmful effects on the environment and allow citizens to save money and time, when moving around the city, without having to own a private car” – Ilze Zoltnere, Head of the Corporate Department in “Luminor” said.

“Long-term cooperation with “Luminor” has allowed the residents of Riga and their closest neighbours to drive “greener” and cheaper, but for us - to continue to grow and encourage customers to use modern solutions for the urban environment” – Vladimir Reskais, the CEO of Carguru said.

Four million kilometres

According to Labs of Latvia, “Carguru” users had driven almost four million kilometres in 2020. That year users have made 250 thousand trips with Carguru. These trips were longer in time and in the distance compared to previous years. Vladimir Reskais thinks that this is related to the development of domestic tourism and the unwillingness to use public transport. In 2020 the average trip was 16 km long and lasted for 85 minutes. Three years ago, it was 9 km and 56 minutes.

“Carguru” began to integrate electric vehicles into its car fleet. “Technologically, we are fully prepared for the electric car introduction to our car fleet, but we try not to exaggerate the number of such cars. Sooner or later, the European Commission will force Latvia to step towards the development of electric vehicle support, and our government will have to stimulate the purchase of electric cars. Business logic states that it would not be right to pressure a larger electric car fleet on Latvia before that happens. While we are waiting, we will continue to work with hybrid vehicles and will slowly increase the number of electric cars in our car fleet,” – Vladimir Reskais stated before.

Beginning – 12 cars

“Carguru” (SIA “Slyfox”) was founded by Vladimir Reskais in 2016 with just 12 cars.

“We managed to convince citizens that it is normal to take a car on the street with the help of the app. There are no hidden risks, and they should not be afraid of receiving a receipt for some mysterious damages. It was really a big challenge” – he says.

The entrepreneur is proud that the company managed to introduce people to the market of carsharing during this time. Four years ago, only a few people knew about it, primarily those who tried this service overseas. Vladimir Reskais assumes that now at least 85% of Riga’s citizens have heard about it, and they can even name the companies that offer this service. The entrepreneur doesn’t want to stop at carsharing and plans to introduce new services from Carguru on the existing platform.

“In Riga, there is space for two to three thousand carsharing vehicles. Our goal is to become the number one player in Latvia in terms of service quality, car fleet size, and to also develop in foreign markets,” – he says.

The industry is developing.

In the world, this industry is developing. There is growth within the number of users, as well as the number of cars. Vladimir Reskajs says that according to various predictions, this year, the number of carsharing cars worldwide will reach 610 thousand.

Moreover, new players enter the market, for example, new carsharing companies and big car manufacturers, who view this business model as a new channel to market their products. At the same time, peoples’ desire to buy their own cars is decreasing, if there is a possibility to use a car only when it is needed without having to commit.

“In carsharing, there are many small and niche companies that work with specific products and offer slightly different services. After some time, when self-driving cars become a reality, carsharing and taxi services will merge into one. I think this is not very far in the future,” – Vladimir says.


author: Anda Asere , June 2, 2021