Today, so many products and services are available to consumers through subscriptions. Spotify and Netflix offer access to a multitude of music and movies, while other services like Blue Apron deliver meals right to the consumer’s home. Startup company GO recently secured new seed funding from investors for its car subscription business.
Locking Down Seed Funding
According to a press release from GO, the startup business successfully secured $42 million during its seed funding round. Funding for the car subscription company was led by New York-based venture capital firm Synterra Capital Management. Additional support for the startup company was bolstered by New Jersey-based Hudson Cove Capital.
“We created GO to transform and simplify the experience of getting a car,” said Michael Beauchamp, founder and CEO of the car subscription business. “Through technology, innovation and efficiency, GO brings customers a seamless experience and lower prices. This partnership with Synterra will accelerate our growth as we expand to meet customer demand in new markets.”
Prior to the latest funding round, the startup company received pre-seed support from GoAhead Ventures, an early-stage growth fund based out of Silicon Valley. The newest funding will help the car subscription business “grow its fleet substantially” as it looks to expand the reach of its services across the US.
Currently, the car subscription startup is available to users in Pennsylvania, Delaware, New Jersey, and Florida, though more states are expected to become available “soon.”
Subscribing to a New Vehicle
Beauchamp founded the car subscription business in 2020. By operating completely online, the startup company claims that its vehicles cost users roughly 20% less than a traditional lease or financing plan and require no “traditional” down payment.
The process of subscribing to a car is relatively simple. A user must first go online and browse the current selection of vehicles offered by the startup business in their area. Then, the user applies for approval. GO requires its customers to be at least 25 years of age and to have a “generally clean” driving record as well as a minimum credit score of 700.
Once users are approved, they are required to be insured under GO’s policy. Finally, users schedule a delivery date for their vehicle. The car subscription company claims that its customers can place an order for a vehicle in roughly four minutes. Users may swap out cars every three years for no extra charge.
Additionally, GO claims that it is able to pass on superior prices to its customers because its business model lacks physical showrooms and only offers the most popular trim configurations for each of its available models.
GO is attempting to disrupt a massive market, and it is not the first business to try. Startup company Carvana, founded in 2013, has already built its own ecommerce marketplace for cars, complete with automated car vending machines. The startup company has since launched a successful initial public offering (IPO) and boasts a market cap of $50.23 billion.
James White is a Michigan State University graduate with a B.S. in Environmental Biology. He is interested in reporting emerging trends in technology, especially with regard to alternative energy and environmental conservation.