Instacar is here to "disrupt" the way we choose a car

The car rental service, Ιnstacar, is here to change the landscape of leasing. And it has managed to become a rapidly growing company with a 220% increase in turnover from 2020 to 2021, as well as impressive performances in 2022.?

The company is running the development plan it has formed. A key step in this direction is that it became an Anonymous Company in 2021 and, as it is in a stage of continuous growth, it is making significant investments in fixed assets such as its fleet of vehicles, as well as in human resources and technology. For the record, regarding the financial performance of Instacar, in 2021 it generated a turnover of 3.68 million euros, up from just 1.04 million euros, as shown by its latest financial results. Its performance and prospects were so promising that it attracted the interest of both the Germanos Group and the Vasilakis Group.?

Just last February, Instacar managed to "cash in" its performance, bringing in capital of €55 million through a funding round. These funds are being used to expand its activity into new markets and provide greater momentum for the company, which may be a startup, but whose growth does not go unnoticed by major business groups, investment funds, and private investors. The Autohellas group (Vasilakis Group) and the Greek fund, Ellikonos 2 SCA SICAR, which has investment positions in Greek companies such as Megas Gyros, Rodoula, Minerva, and several others, dominated the funding round. Olympia Group and Velocity. Partners, which had also invested in Instacar in the past, also participated in the round.

What has attracted the interest of both Instacar's customers and investors is the removal of bureaucratic barriers and the freedom offered by the platform. Specifically, the company has developed a flexible vehicle rental platform, which includes electric bikes, cars, and other vehicles that an individual or business can rent for a period of 1 to 24 months. The process takes place without the traditional leasing commitments and prepayment requirements. For their part, customers can use a modern vehicle by paying a monthly fee and acquire it with just a few clicks.

Instacar's goals?

Instacar and its leaders' goals are to enter European markets such as Portugal and Romania. In terms of its car fleet, it aims to surpass 5,000 units in 2023. Regarding its strategy and business model, the company purchases approximately 90% of the vehicles in its portfolio. Most of these vehicles are brand new. The remaining vehicles are leased from import and distribution companies in the country. The company also maintains insurance to ensure coverage in case the value of the vehicles decreases in the future, thus protecting the company's resale value.?

The founding of Instacar and the new automotive landscape

Instacar was founded in 2018 and officially launched its service in September 2019, providing an innovative solution to fill the gap between car rental and traditional leasing. Its founders are Antonis Samothrakis, Vasilis Damianos, and Antonis Zois. What is the goal for the next few years? To evolve into a provider of all kinds of services related to the use and operation of a car. This in practice means "verticalization" or "logic," as Mr. Samothrakis tells us. The founders aim to present a one-stop application that will provide answers for anything needed during the long-term rental of a vehicle. From finding the desired vehicle to booking appointments with repair shops, tire shops, and car washes. And all of these vertical services even if someone did not purchase their car from Instacar.

The landscape of car ownership is changing. Services provided by companies like Instacar are coming to prove it. They are also targeting the younger generation, where the concept of ownership doesn't have the same power and significance as it did for the Boomers. As shown by many surveys, Gen Z seems to be quite detached from the concept of ownership. Therefore, a bright field of opportunity seems to be open for all new providers of Greek and international car markets.