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PRESS RELEASE

‘Drive Now, Buy Later’ with Avis and FlexClub

Johannesburg, 7 December 2020 - Nearly 2 years after the launch of commercial car subscriptions on its marketplace, FlexClub is now expanding its focus to include the more than 700,000 South African consumers in the market for a personal car each year. In 2019, the marketplace announced a partnership with Uber, offering commercial car subscriptions to the Uber community of drivers in South Africa and Mexico.

FlexClub will now be piloting car subscriptions for a limited number of private members across Johannesburg. These private members will be able to find their next personal car on the marketplace and enjoy access to the unique “Drive Now, Buy Later” benefits already available to commercial members.

Through the FlexClub marketplace, members pay a monthly subscription for a car, while the purchase price of the car continues to decrease over time. Members earn points that discount the purchase price of the car, based on their driving behaviour while subscribed. This represents the foundation of what FlexClub refers to as its “Drive Now, Buy Later” model. 

With 2020 marked by increased uncertainty and a preference for less social contact, the car buying behaviour of consumers around the world has begun to shift noticeably. Despite the challenges faced by the broader automotive industry, leading US and European digital auto retailers such as Carvana, Shift, Vroom and Cazoo have all seen continued growth during the year. This accelerated adoption of e-commerce is forecasted to continue across the globe, with more car shoppers eager to escape the unpleasant, long-held car buying norms. 

Car subscriptions on the FlexClub marketplace offer members unparalleled freedom, delivering an alternative to traditional car loans which can lock customers into precarious long-term commitments over several years. With car subscriptions, members are afforded the flexibility to swap the car, buy the car or cancel their subscription with no additional termination payments, as it suits them. Subscriptions on the marketplace are offered through an all-inclusive monthly fee, eliminating the need for separate insurance or maintenance expenses - with cars delivered to the members’ door.

The FlexClub experience is fully digital, covering member registration, payments and vehicle delivery, offering all the convenience tech-savvy consumers have come to expect when shopping online. While service will only be available to Johannesburg residents during this pilot, the company is planning for nationwide coverage in the near future. 
Subscriptions on the marketplace are offered by Vehicle Partners; which include existing car rental brands and fleet providers. As of today, Avis becomes the first major car rental brand to launch their car subscriptions to South African consumers on the FlexClub marketplace. 

“FlexClub is pioneering the most flexible way to get a car”, says Tinashe Ruzane, CEO and co-founder of FlexClub. “We’re creating a superior digital experience for customers that value their freedom. Imagine if getting your next car delivered to your door could be as simple as shopping on Amazon, with the flexibility to upgrade, downgrade, buy or return the car anytime at the tap of a button”.

According to the company, a pilot launch in Mexico is also imminent, in partnership with several more global car rental brands. This approach to car subscriptions serves as an innovative bridge between car rental and auto retail, creating a new digital distribution channel for car rental companies and fleet providers. 

“We’re thrilled to partner with a global car rental leader like Avis and support their venture into the car subscription space. We celebrate their appetite for innovation in these challenging times and are excited to welcome them onboard as one of our Vehicle Partners. It’s a great milestone to have them become the first international car rental brand to leverage our marketplace technology, launching car subscriptions for those seeking the flexibility to Drive Now, Buy Later”, says Ruzane. 

Avis South Africa CEO, Ramasela Ganda, said "The Drive Now, Buy Later model is an innovative offering that comes at a time where customers are in need of flexible mobility solutions that cater for their ever evolving needs. Avis South Africa is proud to be the first to partner with FlexClub on this subscription offering, as we Try Harder to continuously delight our customers”.

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About FlexClub

FlexClub (www.joinflexclub.com) is a car subscription marketplace offering members the most flexible way to get a car and access the benefits of its proprietary "Drive Now. Buy Later” model. Vehicle Partners such as car rental companies and fleet providers, leverage the FlexClub marketplace as a new digital channel to easily offer car subscriptions to commercial or private members. FlexClub is ushering in a new model for how people buy cars in markets like Mexico and South Africa.

What do I need to become a Member?

We offer car subscriptions to individuals over 18 years old.

You will need:
  • Valid driving licence
  • Valid ID/ Passport
  • Recent proof of address
  • Pay a joining fee

How do I get started?

Just follow these easy steps:
  1. Visit www.flexclub.co.za
  2. Select your car
  3. Create your profile
  4. Pay the joining fee and sign your contract
  5. Collect your car

What is the Drive-to-Buy Rewards Program?

FlexClub gives you the power to buy a car when it suits you. The more points you earn, the cheaper the car becomes to buy. During your subscription, you can earn points based on your spending habits and driving and payment behaviour. Members can accumulate points through safe driving, filling up with our fuel partner, referring friends or even purchasing points.

Is there a mileage limit?

The mileage limits will vary depending on the offer you choose. Please see information on the offer page or in your subscription agreement signed with the Vehicle partner.

Is maintenance and insurance covered by my car subscription?

Your car subscription includes maintenance related to Fair Wear & Tear and comprehensive auto insurance.

Can I switch between the vehicles?

You can switch between vehicles at any time. Beware that by switching you would lose your MyCar points balance that is associated with the duration of your vehicle subscription. Your Club points would be transferred upon taking up a new car subscription within 30 days.

What is a joining fee?

A once-off joining fee covering admin and registration costs will be applicable at the start of your subscription. The joining fee is non-refundable and will be automatically transferred to a subsequent subscription should you choose to switch vehicles and are in good standing with your account. The joining fee will be converted into rewards points.

What happens if I have a fine or some other traffic violation to pay?

Should you incur a traffic fine, we will notify you and either redirect the fine to you or bill you seperately.

How can I end my subscription?

In order to end your subscription, you need to provide 30 days prior notice that you wish to cancel your subscription.

How do Rewards work?

As a FlexClub member, you get access to our innovative FlexClub Rewards program, giving you the opportunity to accelerate your path to vehicle ownership. Earn MyCar points and Club points throughout your subscription.

MyCar Points
You earn MyCar points for completing monthly actions like paying on time or submitting your virtual inspections. In addition, your joining fee goes towards your MyCar points balance when you start your subscription.

Club Points
Club Points are associated with your member profile and award you for using and/or purchasing products or services with our Club Reward Partners.

How do I earn reward points?

You can earn rewards by:
  • Keeping your account in good standing
  • Referring friends or family to subscribe
  • Completing virtual inspection requests
  • Responding timeously to service/maintenance requests on your car
  • Driving well
  • Spending with our rewards partners
  • Purchasing points

How can I redeem my points?

Reward points can be redeemed against the purchase price of your vehicle. The more points you earn, the cheaper the car becomes to buy!

Where do I find my current reward points balance?

Your dashboard when logged in will detail your Club score, total points balance and points earned in your last payment cycle. Monthly statements will also be sent to your email which will show the same information.

How is my score calculated?

Your score is calculated weekly based on whether your payment history and your completion of maintenance requests such as virtual inspections or scheduled services is up to date.

How long will I stay on my score?

The score is recalculated weekly.

When does my qualification period start?

You begin earning rewards after your first completed rental week and after the connection of your bank account.

How long are my rewards valid for?

Rewards will expire once a subscription is cancelled.

Can I transfer my rewards?

No, no points may be transferred, they are attached to your profile and vehicle.

Can I donate my rewards?

No, you cannot donate rewards, they are attached to your profile.

Can I lose rewards?

Rewards will be lost at the cancellation of subscriptions, through the use against a purchase of your vehicle or if a subscription is transferred.

What happens to my rewards balance if I end the subscription?

If you end your subscription earlier than your rental period, your MyCar rewards related to the vehicle will be forgone. Within 30 days after ending your subscription, you can decide to renew your subscription and we will transfer your accrued Club rewards onto your new subscription.

Does my bank allow this?

Yes, you can currently connect your ABSA, Capitec, FNB, Nedbank and Standard Bank accounts using your online banking details.

Can FlexClub move money out of my account?

Absolutely not, FlexClub will only be able to read from your account, and not perform any kind of transactions.

Is it safe to connect my bank account?

Yes, we take your security seriously. We do not store any of your bank credentials with us. Access is obtained through your consent alone and can also be revoked by you at any time.

Our method of access relies on well-tested encryption and security protocols.

Do you store my banking data?

Your login credentials are never stored on our servers. Your transaction data, balance, and other data you share with FlexClub is protected with strong encryption.

Is my data safe?

Absolutely, we take security very seriously. All your data is stored in a secure database that is only accessible via multiple security layers and measures to prevent unauthorized access. We do not sell your data to third parties.

Can I disconnect my bank account connection?

Yes, you can disconnect your bank account at any time. Please note that disconnecting your primary bank account may affect your reward profile. Ensure that at least your primary account remains connected to keep earning rewards.

What do I need to become a Member?

We offer car subscription to existing Uber driver-partners who have at least 18-weeks driving history on Uber.

You will need:
  • A driving licence
  • ID/ Passport number
  • Your own Uber slot
  • Strong earnings record of past 4 months
  • Pay Joining Fee (2 weeks rental)

How do I get started?

Just follow these easy steps:
  • Visit the Commercial page on www.flexclub.co.za
  • Click "Join the Club"
  • Create your profile
  • Collect your car

How much will it cost me to rent a car?

We have options for all budgets, you can review the options on our marketplace section. Your weekly rental can be as little as R2,400.

How do I get paid?

As you are an Uber driver-partner, nothing changes for you. As you have registered with your Uber partner-driver profile, the weekly rent will get automatically deducted from your weekly earnings. Your weekly payment will be deposited directly into your bank account by Uber.

How quickly can I hit the road?

If you already have approval from Uber to add a vehicle to your profile, you can be on the road with your car in as little as 24-hours, depending on the operating license requirements of your city and if you are currently not driving for a fleet partner.
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