Car subscription provider Wagonex has become the recipient of Admiral Group’s first investment from its new venture building business Admiral Pioneer.
Launched back in 2016, Wagonex has already partnered with Cupra and promises to offer car retailers a plug-and-play subscription platform providing a potentially lucrative new income stream from mobility services.
It claims to offer a seamless end-to-end customer journey, with an automated credit decision engine creating flexible contracts inclusive of road tax, insurance, breakdown cover, and servicing.
Admiral, which already provides short-term motor insurance, said that investing in the business would provide it with insight into the specific insurance needs of vehicles provided to customers on a subscription basis.
Research suggests that by 2025, vehicle subscriptions will account for around 10% of all car and van registrations.
Emma Huntington, the chief executive of Admiral Pioneer, said: “Our aim is to support long-term diversification by identifying new markets and ventures where our existing strengths and knowledge give us a competitive advantage.
“We believe that Wagonex’s best-in-class technology and strong position in the rapidly expanding car subscription market makes it a perfect fit for our first strategic investment.
“We look forward to working closely with Toby and the team as they continue to expand Wagonex in the UK and beyond.”
Wagonex founder and chief executive Toby Kernon said: “We’re delighted that Admiral Pioneer has chosen Wagonex as its first strategic investment. This not only demonstrates the strength of our business and technology but also the exciting market opportunity with the car subscription market predicted to be valued at up to $30 billion globally by 2030.
“This will allow us to build on our strong UK position and continue to play a leading role in this rapidly growing market, which is changing how the world drives and owns vehicles.”
Admiral Group said that Wagonex has delivered more than 120% of year-on-year growth as its consumer facing subscription offer gains popularity.
In May AM reported on the vehicle subscription business’s claim that interest in car subscriptions had ‘grown dramatically’ in the last year, with consumer searches exceeding 11,000 a month – 10 times more than the same period last year.
Like the recently re-launched subscription platform Karzoom, Wagonex aims to make it easier for car dealers to unlock the potential of vehicle subscriptions.
It offers everything a retailer needs to get up-and-running, from its own fully-branded online portal, through to insurance brokerage, customer checks, online contract exchange, digital marketing and payment management.