PODCAST | FlexClub’s plan to grow pay-as-you-go car subscriptions for SA

The emergence of pay-as-you-go vehicle access in SA is the focus of this edition of Business Day Spotlight. 

Host Mudiwa Gavaza is joined by the team from FlexClub: Tinashe Ruzane, co-founder and CEO; Idan Jaan, co-founder and COO; and Howard Sommerfeld, co-founder and CTO.

Founded in 2018, FlexClub is a technology-backed start-up that allows people to subscribe for a car, as opposed to renting, leasing or owning. 

The team details its new offering, in partnership with local Avis operator Zeda.

The company recently announced the launch of a pay-as-you-go subscription offering that enables customers to keep vehicles longer than a typical rental.

Join the discussion: 

In recent years, a number of companies have shifted their business models from one-time purchases or fixed-term contracts to subscription and annuity-based income to secure steady, continuous revenue.

The company hopes to take advantage of these trends, together with the consumer behaviour of millennials, who are more open to new concepts such as pay-as-you-go vehicle use.

Ruzane details the company’s evolution from simple subscriptions to a prepaid model, while Jaan highlights how the company has structured its financing model. Sommerfeld sets out the technology strategy to make the model a reality. 

Through the discussion, the team outlines FlexClub’s business model; the partnership with Zeda; evolution to prepaid or pay-as-you-go vehicle access; and the technology powering the platform. 

Pay-as-you-go moves vehicle operators such as Zeda closer to the prepaid voice-and-data model pioneered by SA’s mobile operators more than two decades ago. Unlike a fixed-term contract, rental or subscription, customers can “top up” their use of a vehicle when needed. 

Business Day Spotlight is a MultimediaLIVE Production. 

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