PODCAST | Planet42’s push to dominate vehicle subscriptions

Planet42’s ongoing push to dominate vehicle subscriptions is the focus of this edition of Business Day Spotlight.

Host Mudiwa Gavaza is joined by Eerik Oja, CEO and co-founder of car subscription service Planet42. Oja outlines his company’s funding and growth strategy. 

In early March, Planet42 received R300m in new funding from Standard Bank, consisting of R50m in equity and a R250m credit facility, which the Naspers-backed company says will allow it to buy more cars and build on the more than 20,000 vehicles it has provided to customers in recent years.

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Founded in 2017, Planet42 aims to address transport inequality by offering an inclusive car subscription service to customers who typically cannot access traditional bank credit. 

Oja says the company has raised close to R4bn since its founding, highlighting the interest that the business model has been able garner from investors. 

Through a network of more than 1,000 local car dealerships, Planet42 buys the car and rents it out to the customer on a subscription basis, with customers being able to either buy or return the car at any time.

Oja says the entry of established vehicle rental players such as Avis in car subscriptions is more proof how viable their subscription model is. He also details how traditional rentals and leasing are now merging with the subscription model.

The company launched its first car marketplace at Menlyn Park Shopping Centre in Pretoria

Topics of discussion include the following: Planet42’s funding efforts; the evolution of vehicle subscriptions in SA; opening a physical car shop; competition; and the company’s investment technology.

• Business Day Spotlight is a MultimediaLIVE Production.