Insurance Australia Group Limited (IAG) has acquired a majority stake in trading platform and digital car subscription service, Carbar.
Carbar was established in 2016 in Melbourne, expanded to Sydney in June 2019, and is Australia’s first car subscription platform. It caters to customers looking for alternative forms of vehicle ownership and now has plans to expand across Australia in 2020.
Carbar offers a car subscription starting at $109 per week which includes registration, insurance, roadside assistance and maintenance. IAG hopes to better understand the changing mobility trends while providing new sources of value to customers through Carbar.
Carbar plans to expand its vehicle subscription model while supporting the growth of its online car trading platform that removes the uncertainty often associated with buying a new or second-hand car.
“We are thrilled to partner with Carbar which will play a central role in our approach to the future of insurance and the changing mobility needs of our customers,” said James Orchard, IAG Executive General Manager of Innovation.
“Carbar has pioneered the car subscription model in Australia. We look forward to combining its world-class digital capabilities with IAG’s assets and scale to provide new mobility experiences for customers today and in the future.”
“IAG’s support will be instrumental in growing and developing our business,” said Desmond Hang, Carbar CEO and co-founder. “We look forward to working closely with its team to further expand Carbar and grow our car subscription capabilities.”