When it comes to disruption, there's likely no business more susceptible to pandemic-fueled change than car leasing. And ...
Deal sourced in partnership with Wharton Impact Venture Associates (WIVA).
Electric vehicles are underexposed and inaccessible
Electric vehicles (EVs) are an exciting, environmentally friendly alternative to traditional gas cars, but they are underexposed, expensive, and confusing to customers. Recent studies have found less than half of respondents were able to name a single plug-in EV make/model, while over 50% listed charging/range anxiety as the primary reason they would not commit to an EV (additionally, only 18% of respondents were aware of charging stations on their regular routes). Another roughly 30% sited price as a major barrier to purchasing an EV as well.
Modern consumers are tired of long-term commitments. From TV to music, people are opting for flexible subscriptions. When it comes to cars, people are over 3 year leases and are searching for a seamless, low friction way to use a vehicle.
Borrow: EV leasing made easy
Borrow is a short-term EV leasing company that combines customer service, industry expertise, and utility to create an accessible EV experience. Borrow educates users with transparent and simple messages, extensive marketing, and personalized experience. We are experts on insurance, maintenance, and roadside, so our users always feel comfortable driving their vehicles. Finally, we offer our customers a way to access transportation without the long-term commitment and inflexibility of a traditional lease, and without the high costs of daily ride sharing.
A simple three step process
Our fleet is currently located in Los Angeles, and we provide an easy pick-up location in West Hollywood that's open 6 days a week. All of our vehicles are pre-owned and fully-electric. Customers simply reserve a vehicle online for 3, 6 or 9 months, stop by our office for pick-up, and then the car is theirs!
Once their term is complete, users can choose to either renew, upgrade, or end their subscription. We charge no downpayment and all subscriptions include EV education, insurance, maintenance, roadside, home charging cords, and free charging credits at public stations.
Safety is our top priority. Borrow now offers 100% touchless delivery of fully sanitized vehicles.
Our fleet includes: the Tesla Model S, BMW i3, Fiat 500e, and Smart ForTwo Electric Drive
Borrow surpassed our initial goals to create a model that brings EV adoption to scale. We currently have 5 different car models across 4 categories, allowing for a breadth of different subscriptions. We’ve also scaled to 100+ users with a 125% growth rate. As of 2020 we have a 2K+ person waitlist with 200 paid reservations and counting. Borrow has also secured partnerships with EvGo, ChargePoint, and Goodyear to guarantee an even greater user experience. It's no wonder we were featured in Built In LA's 50 startups to watch in 2020!
Easy leases for interested drivers
Our customers range from those who are curious about EVs but don’t want to front the cost of a new car to those who simply don’t want to own a car in general. We cater to each driver's preferences and offer diverse lease packages according to our customer's interests. Whether you're an EV enthusiast, transient individual (i.e students and employees on assignment), or low-commitment millennial, Borrow has leasing options that fit your lifestyle and needs.
What our customers are saying:
Four subscription tiers
We offer four different subscription tiers, along with a one-time reservation fee of $25. Tiers are separated by vehicle (from a Smart Car in "Campus", to a Tesla in "Platinum"), and users can select any term length from 3, 6, or 9 months regardless of tier.
During the subscription, payments include a flat monthly rate and insurance. There is also a $50 cleaning fee after returning the car. With this model we estimate a 39.06% margin by 24 months.
The future of automobiles
EVs are expected to be everywhere in the future. Experts predict that an EV will sell every 21 seconds by 2025, and that EV sales will be above 3M by 2028.
Borrow is already positioned in the center of the national EV market, California. Half of all EV sales in the US occur in the state and Borrow has short-term plans to have presence from San Diego to San Fransisco.
Outside of California, the EV market is primed to explode. By 2030, there will be as many EVs on the road as households in the US. Both OEM supply and consumer demand have been increasing for years, and with the EV revolution now a primary focus of our government and auto manufacturers, this growth has only just begun.
Low friction and short-term commitment model
Borrow provides a unique low friction and sustainable model that allows customers to lease vehicles at a competitive price for a shorter term. We are the only company in this bracket offering a comprehensive EV subscription offering.
Borrow is the only subscription service focusing exclusively on EVs and with no downpayment, making it both the best environmental and economical option available.
Expanding our fleet
The EV market is exploding and people are looking for an easy way to access this new technology. As demand for these vehicles increases, so will the need for Borrow. In the short term, that means capitalizing on early adopter markets like California where the EV revolution has already taken hold. In the long term, we want to be the first EV ownership option for new markets across the country where people are unfamiliar with EVs.
By reaching our investment goal, we plan to expand geographically to 7 target markets across the US. We also plan to begin a digital and IRL scaling of reservations by adding new models and more options for our subscribers, such as post-acquisition perks that make EV ownership even easier.
$1M+ investment to date
Borrow has raised $670,000 in equity, with investment from Mucker Capital in Los Angeles and Urban-X and Urban-Us in New York (Urban X/Us both funded by BMW MINI).
In addition to equity, Borrow has secured $1,025,000 in debt to purchase vehicles for our fleet. The primary debt providers have been a hedge fund in New York and real estate company in Houston.
Experience in the the tech and automotive industries
Rodrigo de Guzman - Internet technologies veteran, first at NetGravity (now Google), Accipiter, AdForce (both acquired by CMGI), InfoSpace and QuinStreet. Rodrigo is the founder of online marketplace Mariposa Media as well an attorney with specialized training in technology transactions and intellectual property. He has represented Electronic Arts, HP, McAfee, Sears Holdings, QuinStreet, and Google.
Jon Alain Guzik - Los Angeles-based serial entrepreneur, angel investor, consultant and technology executive with a long history in the automotive, mobility and media industries. Guzik is also a seasoned journalist and media personality who covers the automotive industry, the future of mobility as well as the luxury and timepiece industries.