US investor helps rental-return firm into new market

AN AUCKLAND tech start-up offering travellers free car hire and a tank of fuel is revving up the United States car rental industry with backing from an angel investor.

Transfercar is a car relocation service, offering travellers free one-way car hire while helping rental companies get their vehicles back where they are wanted most.

The company was founded in 2007 by Norwegian Espen Grimstad, at that time a student at Auckland University Business School, and his lecturer, Brian Karlson.

The Transfercar website connects travellers with car rental companies wanting their vehicles returned after paying customers are done with them. The arrangement saves those businesses hundreds of dollars in truck or rail haulage costs each time.

The company works with 70 rental car operators in New Zealand, 44 in Australia and 8 in the US. In New Zealand it handles about 1000 vehicle relocations a month.

For each successful transfer Transfercar takes a fee of about $60 from rental operators, says chief marketing officer Pascal Languillon.

Earlier this year, Transfercar raised $450,000 in private investment from US entrepreneur Dennis Round to fund expansion into the US.

The company is planning to consolidate the US market and then look at other opportunities globally with Europe the next likely target market, Languillon said.

It took time for rental companies to understand that Transfercar was working as a partner rather than a competitor, he said.

Not only was the service saving rental companies money, it was also increasing their brand exposure by attracting drivers who could potentially become repeat customers, he said.

Transfercar also gave rental companies the opportunity to increase the rental by a few days, if the driver wanted the vehicle for slightly longer, he said.

Rentals were offered from all big cities and airports in New Zealand and some smaller centres, Languillon said.

Espen Grimstad