Virtuo, the 100% contactless car rental service, is teaming up with the South Korean car manufacturer Hyundai to reinvent car distribution. Virtuo will be integrating the Hyundai Kona Electric into its fleet as part of a new revenue sharing business model.
Virtuo’s seamless mobile app allows users to book a car on-demand that has been washed, cleaned, and maintained. At the end of the month, approximately 20% of the revenue is shared with the manufacturer, with a minimum guarantee.
“Through this new business model, we are trying to imagine what the future of automotive distribution in large cities might look like," Karim Kaddoura, co-founder of Virtuo, said in a statement. “We are convinced that owning a car makes less and less sense nowadays, nevertheless cars remain the best option for longer journeys outside the city. This is exactly what we are tackling at Virtuo, allowing our users to access a pristine car, instantly, 24/7 using their smartphone, without the burden of owning it. Our strength relies on our fleet-management know-how and our 100% digital experience. This revenue sharing model not only allows us to introduce a whole range of new vehicles to hundreds of thousands of users but also to co-create with our manufacturer partners the best mobility offer for tomorrow.”
Virtuo chose the Hyundai Kona model as the first electric vehicle in its fleet because of its range of 484km (64k Wh battery). This model is efficient, responsible and embodies the values of Virtuo. The integration of the Hyundai Kona electric represents the first step in achieving the start-up's goal: to reach 50% of EV fleet by 2025.
Hyundai Kona Electric will be available for rental on the Virtuo app from Feb. On this date, 40 vehicles from the South Korean manufacturer will be available in Parisian stations. The six-month objective is to double this fleet, and then expand into other French cities.