European car-sharing platform Karshare raises £3M for expansion

Karshare, a peer-to-peer car-sharing app operating in the United Kingdom, has raised £3 million. The funding comes from existing investors Fullbrook Thorpe, Adjuvo and angel investors as well as Saracens Football Rugby Club owner Nigel Wray.

Karshare says rental revenue through its platform has increased 45% month-to-month across Bristol, Manchester, Coventry and London since the start of this year. Now the company plans to expand those locations and launch in other cities across the U.K. including Birmingham and Leeds. 

Through its mobile app, Karshare uses facial recognition technology to authenticate users and unlock the car. The app also serves as a virtual key and records mileage and fuel levels. The company provides insurance to cover damage and break downs.

“The opportunity to share cars is vast. There are 33 million privately owned cars and 1.5 million registered vans in the U.K. On average, these vehicles sit idle 96% of the time. For the many hours they are sat outside people’s homes on streets and driveways, they could be hired out to vetted drivers in the local area, put to good use and generate income for the owners,” says Andy Hibbert, Karshare founder and CEO.

“Our vision for the future is one where there are far less vehicles on our roads, and the vehicles we do have are being shared to give multiple users access for the trips they need. Essentially moving away from ownership toward usership. The sustainability benefits are huge. For each car shared, up to 24 can be taken off the road. Car sharing will play a key role in the move to net zero, which will require 50% less cars to be on U.K. roads and as we transition more to EVs [electric vehicles] these benefits will continue to grow.”  

Hibbert is also the founder and CEO of Car & Away, an airport-based car sharing service that enables people to rent put their cars up for rent when they leave on vacation.