Carro Group CMO Manisha Seewal (L) and Tribecar Co-founder Adrian Lee
Singapore-based car-sharing platform Tribecar announced today it has partnered with local insurance firm NTUC Income and wholesale automotive marketplace Carro to provide usage-based insurance (UBI) coverage for its fleet of rental cars.
Unlike conventional fixed costs auto insurance premiums, UBI charges are tied to the vehicle’s data, such as mileage, location and timing consumption.
Developed through a joint initiative between NTUC Income and Carro’s leasing arm Carro Leap, the UBI platform combines telematics, insurance and data analytics.
As per a press release, Tribecar has adopted this insurance programme, allowing it to provide car-sharing rentals from S$0.50 (US$0.38) per hour for its “Super Economy” Category.
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“It is very encouraging to see the growing interest in new insurance models like UBI within the motoring community, which is testimony to the value it brings to drivers — customisation and convenience,” said Max Tiong, Head of Digital Transformation at Income.
“With a usage-based model that allows them to pay insurance based only how much they drive, Tribecar’s customers can now enjoy a new level of flexibility with rental cars,” said Aaron Tan, Founder and CEO of Carro.
Existing commercial fleet insurance typically require motor fleet owners to pay a fixed lump sum premium even when their cars are left idle.
In contrast, UBI charges the value of insurance incurred, starting from the first kilometre. With UBI, motor fleet owners can have greater autonomy over their car insurance and have enabled car rental firms to save costs by adopting a ‘drive less, pay less’ business model.
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Since launching in 2016, Tribecar has invested over S$4 million (US$ 3.03 million) in research and technology initiatives from its profits to accelerate product development.
The startup claims its cars see a strong uptake of about 18 hours of road use every day, an indication that car-sharing vehicles can be used more effectively than privately-owned vehicles. It further remarked its effort in promoting car-sharing is in line with the push by local regulators to reduce car usage in Singapore.
“We’re also experimenting with new ways to deliver greater value for our members. Currently, we’re in talks with authorised car distributors in Singapore to roll out ‘drive before you buy’ schemes for members that may be keen to buy a new car,” said Adrian Lee, Co-founder of Tribecar.
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Image Credit: Tribecar
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