erad, has enabled Udrive, the first car-sharing provider in the Middle East, to achieve rapid growth in the competitive car rental market. This case study delves into how erad's tailored financing solutions have supported Udrive's unique business model.
The Challenge
Udrive, as an innovative car-sharing service, faced a distinctive set of challenges. Key issues included:
- Speed of Decision: Udrive's business model relies on swift decision-making to cater to customers' on-demand needs. Traditional financing sources were often slow to respond, hindering Udrive's ability to seize certain opportunities faster.
- Inventory Purchasing: Competitive pricing for vehicles is critical in the car rental industry. Udrive needed to secure inventory swiftly to maintain cost-effectiveness and meet customer demand, which wasn't feasible with traditional banks.
- Buying Planning: Udrive requires flexibility in planning vehicle purchases to align with changing market dynamics.
"Udrive needed these funds to expand our fleet and timing was very critical else we would have lost a good deal. Adding new fleet at the right time allows us to cater to the growing needs of the customers" - Jarna Gaglaani, Chief Financial Officer at Udrive.
The Solution
erad stepped in with a tailored financing approach to address Udrive's challenges. erad's streamlined process allowed Udrive to receive financing quickly. This empowered Udrive to respond swiftly to market opportunities and scale their fleet as needed. Moreover, erad offered Udrive access to competitive financing terms, enabling them to secure inventory at more attractive prices. This enhanced efficiency provided Udrive the flexibility to make rapid and well-informed decisions and streamline their day-to-day operations.
The Result
The quick access to working capital allowed Udrive to quickly expand its fleet, ensuring they could meet the growing demands of their customer base. The entire process, from assessing needs to obtaining funds, was streamlined with erad's flexible onboarding and assessment process, enabling Udrive to adjust buying plans in real-time. With support from two financing facilities, Udrive now enjoys better financial stability and growth prospects.
"When we did a top-up we got much better terms than the first one and it seems like a win – win scenario for both the teams." - Jarna Gaglaani, Chief Financial Officer at Udrive.
By offering speed, flexibility, and competitive pricing, erad has empowered Udrive to maintain its market presence, in a highly competitive industry.
