France-based car rental startup Drivy has secured a new €6 million ($8.3 million) round of funding that should help the service grow beyond French borders.
Unlike other peer-based car startups (Uber, Lyft, etc.), Drivy isn’t a taxi replacement service. Instead, the startup invites people to rent out vehicles they aren’t currently using to people who would otherwise go to a chain car-rental service. I would say Drivy is more like an Airbnb for cars, but the startup says it wants to actually replace the act of purchasing a car for people who don’t really need one all the time.
The company said it has 250,000 active users, and the average car owner on Drivy earns about €1,000 ($1,388) annually from the service. Drivy also said it’s seeing 20 percent growth every month, which contributes to it being one of the largest car rental services in Europe.
Drivy said it plans to use the new funding to expand into other parts of Europe, specifically Germany, Spain, Italy, the Netherlands, Belguim, and the UK. It’ll also use the funding to hire more employees, and grow product development.
The startup’s first institutional round was led by Index Ventures and Alven Capital. Founded in 2010, the Paris-based startup has raised $11.1 million in funding to date.