Carasti’s subscription service poised to upend traditional car ownership model
Dubai car subscription startup Carasti unveiled a service that allows customers to rent new cars for 12 months and 24 months, without the financial commitment of owning a vehicle.
“There are no hidden costs, no extra fees and no financial surprises,” Claudio Aiardo, chief executive and co-founder of Carasti, told The National.
“We simply do not believe that you should be weighing yourself down with debt, bank loans and payments just to drive a car.”
UAE customers can subscribe through the Carasti app, where they can select a car, upload their driver’s licence and Emirates ID.
The car will be delivered to their doorstep after their details are verified.
Customers only pay a monthly fee with no down payment, upfront costs or insurance charges.
Carasti handles the registration of the vehicle, as well as maintenance and service, roadside assistance, insurance and delivery.
The start-up raised $3 million last month in a pre-Series A funding round led by Net Ventures, with the participation of the Rua Growth Fund.
With the proliferation of ride-hailing companies such as Uber and Lyft, people have greater mobility choice, particularly in urban areas.
Half of car owners know today that they will no longer want to own a personal vehicle by 2025, according to KPMG’s Global Automotive Executive Survey 2019.
McKinsey predicts that about 30 per cent of the automotive industry’s revenue will come from subscriptions and other recurring shared-mobility revenue models by 2030.
Carasti aims to attract more customers to its platform as it prepares to enter Saudi Arabia – the Arab world’s biggest economy – in the second half and other GCC markets next year, said Mr Aiardo.
“Our subscription model aims to make car ownership as flexible and affordable as possible ... providing our customers with an easy alternative to car ownership,” he said.
Founded in December 2019, Carasti works with various fleet partners in the UAE who have registered on its platform. Its minimum subscription is for a month.
Mr Aiardo said there has been a sharp increase in customers over the past few months.
“Currently, more than 2,000 cars are in use by our customers and we have another fleet of 1,000 reserved cars to meet any upsurge in demand,” he said.
Co-founder and chief financial officer Michael Menary said Carasti aims to “provide vehicle plans that suit any lifestyle or budget without the worry”.
“We are confident that our new mini lease subscription service can help reshape the common conceptions of car ownership in the UAE and the wider region,” he said.
The company is offering customers who sign up during Ramadan free fuel worth Dh100 every month for a year through a partnership with fuel-booking app Cafu.
We simply do not believe that you should weigh yourself down with debt, bank loans and payments just to drive a car
CLAUDIO AIARDO
Chief executive of Carasti