Driving a car is important for people in society because it gives them social status and freedom, and independence.
People over 65 have trouble walking or riding their bikes to get to bus stops. So, driving is often the only way for people to stay mobile on their own.
South Africa has a big problem with the number of private vehicles and how often people use them, especially in cities. But not much has been done to get people to switch to public transportation.
People think that public transportation is not safe and doesn’t live up to the standards set by private vehicles.
But Planet42, a mobility start-up with a rent-to-own plan, has changed the way people think about owning a car.
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Car ownership
In many developing countries, buying an automobile is challenging, especially for low-income people. When seeking vehicle finance, those with bad credit histories often confront lender disinterest or high interest rates.
Planet 42 has simplified car ownership, however. As one of the few African mobility startups, the company offers a car subscription service to solve this inequity. The company’s scoring systems go beyond credit ratings to assess consumer risk.
This method permits those without bank accounts to qualify for auto loans. It has also decreased the requirement for considerable finances to buy an automobile. Planet42 allows car-less people to buy a car without saving money.
Planet42 car dealerships
Planet42 gets used cars from a network of car sellers and uses technology to reduce risk and make it easier for people to get money. Then, these cars are rented out to customers without physical checks or face-to-face meetings.
In some parts of the world, having a car isn’t a luxury but rather a requirement. Having a car gives people new options and frees them from having to rely on public transport, which is slow and not always effective.
Public transport services in well-established places like the US and Europe make personal mobility less important. Because of this, people don’t need their own cars as much. But in many other parts of the world, being able to move quickly, safely, and comfortably is still a big and difficult problem.
Planet 42 wants to make it easier for everyone to get around. This means that more people in South Africa and other places will be able to enjoy the benefits of having a car. So, the goal of the start-up is to make it easier for more people in the country to buy their own car.
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Track record so far
Planet 42 has made a lot of progress in the South African market. They have over 700 stores, which is a huge number. The new business has been able to give buyers access to a large number of cars. The company has listed more than 7,000 cars, so South African buyers have a lot to choose from.
According to Cars.co.za, Planet42 dealerships have expanded from 700 to 1,000, indicating substantial growth in their network. Since partnering, the company says, the new sellers in South Africa have seen their average sales go up by 26%.
Planet42 says that so far, 89% of their customers don’t have any other way to get a personal car. This number shows how much of an effect and value a start-up has on its customers. Planet 42 meets a very important market need.
It also shows that there is a lot of interest in their services and that they could grow and be successful in the future. The company says that the start-up’s move into Mexico is a strategic move to address travel inequality around the world.
