Malaysia’s Mayflower buys majority of on-demand car rental startup GoCar

Malaysia’s leading travel service provider Mayflower Acme Tours has bought a majority stake in on-demand car rental startup GoCar.

The company acquired 55 percent of GoCar for about US$109,000, its publicly listed parent firm, Warisan TC Holdings, told Bursa Malaysia.

Mayflower is a travel service specialist that has been operating in Malaysia since 1969. It offers a wide range of services – from car rental to hotel reservations and tours.

The company has a staff of more than 500, over 3,000 vehicles, and a network of 19 offices and branches, including four airport counters, throughout Malaysia.

“[The deal] is expected to strengthen Mayflower’s position in the retail car rental market and will provide Mayflower with immediate access to a self-service, automated, and web-based platform for car rental,” says Warisan, which is part of the Tan Chong group, the sole distributor of Nissan cars in Malaysia. Tan Chong is controlled by the family of Tan Heng Chew, one of Malaysia’s richest.

The deal means GoCar will now become a subsidiary of Mayflower, but it will keep its name and brand. GoCar’s founder and executive director TJ Tan will also continue to set the company’s overall direction and run the day-to-day operations.

GoCar allows its members to rent cars by the hour or day – self-service style.

Founded in March 2015, GoCar allows its members to rent cars by the hour or day – self-service style. After booking a car on GoCar, members go straight to the vehicle and unlock its doors using the app, then use a pin code to unlock a box inside the glovebox where the key is stored. The whole process upends traditional car rental, which involves negotiating with sales staff and paying in cash at the counter.

The company has so far registered over 5,000 hours – equivalent to 208 days – of bookings for cars located in Cyberjaya, Mont Kiara, Mid Valley, and Bangsar. It doesn’t own the cars, but only taps idle fleets of car rental companies. Moving forward, TJ says GoCar will use Mayflower’s fleet exclusively.

“By joining the Tan Chong family, we will significantly scale our fleet, allowing us to expand to other regions in Malaysia seamlessly, as well as leverage existing Mayflower’s airport and retail counters,” he says.

So in essence, GoCar’s supply is now sorted, while Mayflower will be able to operate leaner using GoCar’s technology – its outlets can cater to 24/7 rentals and users can self check out instead of relying on staff.

Apart from selling a stake to Mayflower, GoCar obtained a US$121,000 grant from the Malaysian government’s Cradle Fund. GoCar will use the grant’s proceeds to expand into new markets, scale the team, and boost its marketing reach.

Converted from Malaysian Ringgit. Rate US$1 = RM 4.13.