Carguru’s Strategic Acquisition of OX Drive: Redefining Car Sharing in Latvia I’m excited to announce that at the end of August, Carguru completed the acquisition of OX Drive. As the founder of Carguru, I believe this move is a game-changer, not just for us, but for the entire car-sharing market in Latvia. Since launching as the first car-sharing service in Latvia, Carguru has been focused on building a sustainable industry and investing in its growth. But the market has become increasingly challenging—unhealthy competition and price dumping have reduced the potential for growth and lowered service quality. Rising interest rates and the imbalance between new and used car prices have only added to these difficulties. This acquisition represents an essential step forward. Partnering with Eleving Group gives us access to new synergies, allowing us to consolidate the market and expand our fleet. This means more vehicles and better service for our users while also stabilizing the market. One month in, and we’re already seeing results: - Daily trips have increased by 57%. - Average daily revenue per vehicle is up by 23%. - Demand and interest in Carguru’s service have significantly risen. However, scaling up brings its own set of challenges. Managing a larger fleet, especially with many electric vehicles, has increased operational pressures. Users remain hesitant to charge electric cars, which means our team takes on much of this task. For instance, Teslas now account for 3 out of every 4 field tasks, despite making up less than half our fleet. We’re also monitoring potential Tesla depreciation risks, though our updated financial model accounts for these concerns. One lesson we’ve learned is that a 100% electric car-sharing model isn’t profitable. The key is balance—a mix of vehicle models that play different roles. Some vehicles are operationally efficient, others attract users, and some cater to price-sensitive customers. It’s this diversity that ensures profitability and sustainable growth. Looking ahead, we’ll focus on completing the integration of OX Drive into Carguru’s system. We expect the next 2-3 months will confirm whether our assumptions about the new business model are correct. But our overall vision remains unchanged: continue developing our IT platform, invest in innovative vehicles, and strive to become one of the top two car-sharing providers in the Baltics within the next three years. We’re excited about the future and look forward to sharing our progress! #CarSharing #Carguru #BusinessGrowth #Sustainability
Good luck! 🤘🏻
Vitaly Petrovs
6mo
Vladimirs Reskājs congratulations on a such bold move! Love your service! Now twice much 😄
Eveline Gibele
6mo
Congratulations on your growth! Loved using Carguru's service
David Rapoport
6mo
Keep growing!
Klavs Vasks
6mo
Good luck Vladimir, you will make it! ⭐️
Good luck Vladimirs Reskājs , long road ahead