A community car-sharing app has secured £3 million in new funding to help it launch in Birmingham, Leeds and Edinburgh.
Karshare enables people to rent their car to others within their community which can be booked via the app, with claims some users are earning up to £550 per month.
Since launching earlier this year, the tech has been rolled out in Coventry, Bristol, Manchester and London and created 32 jobs.
The tech firm has now secured the new finance from a group of existing and new investors which it is using to begin trading in the new locations.
Want more business news straight to your inbox?
BusinessLive is your home for business news from around the country – and you can stay in touch with all the latest news through our email alerts.
You can sign up to receive daily morning news bulletins from every region we cover and to weekly email bulletins covering key economic sectors from manufacturing to technology and enterprise. And we’ll send out breaking news alerts for any stories we think you can’t miss.
Visit our email preference centre to sign up to all the latest news from BusinessLive.
Founder Andy Hibbert said: “The opportunity to share cars is vast. There are 33 million privately owned cars and 1.5 million registered vans in the UK.
“On average, these vehicles sit idle 96 percent of the time….they could be hired out to vetted drivers in the local area, put to good use and generate income for the owners.
“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.”
This new funding round was backed by existing investors Fullbrook Thorpe, Adjuvo Syndicate, angel investors and welcomed Nigel Wray, the owner of Saracens rugby club, as a new partner.
Fullbrook Thorpe’s chief executive Andrew Borkowski added: “It’s a sector which is ripe for innovation, sustainability initiatives and new technology – all of which are vital aspects of the peer-to-peer model.
“This latest round of funding will enable Karshare to grow its team, further develop the service and expand its footprint across the UK.”