Kovi is a Brazilian start up that enters the market of urban mobility by offering car rentals on its application.
Compared to competitors, Kovi cooperates with automakers and small rental companies to lease transportation out to last-mile delivery drivers. Automakers rent cars to Kovi at economic prices and then the firm resells them to users.
“We are in the beginning stages of an urban mobility revolution, like what happened with e-commerce 10 years ago, said Adhemar Milani Neto, one of the founders.
Meanwhile, fellow mobility contenders like Localiza, Unidas and Movia purchase cars in scale with guaranteed rebates from automakers for valuable rebates. Typically, they monetize assets for 12 to 18 months via rentals, only to resell them for profit.
Only 20 percent of Brazil’s population reportedly owns a car, meaning there is ample room for disruption in the mobility industry. Traditional rental companies also serve between 20 and 30 percent of Brazil’s 1 million drivers on applications such as Uber, Cabify and 99.
With such gaps, Adehmar contends that the number of drivers will double in the next five years. Even more, the share of rented cars could reach more than 60 percent in major urban areas thanks to Kovi’s unique proprietary system. Specifically, it rewards drivers for good behavior while also providing accident protection.