Episode 4 – From Zero to Launch: Montreal Carsharing

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Vulog is launching a brand-new carsharing service in Montreal! We are teaming up with a local dealership group to bring Montrealers a smarter, more convenient way to get around. We want to bring you along for the ride with an exclusive, first-of-its-kind series that takes you behind the scenes to show what it really takes to build a successful carsharing service from the ground up.

Last week, we introduced you to our new, lean, Montreal team and gave some background on our local search efforts and the transatlantic training that gave them firsthand experience with carsharing operations. Now, we are turning to an equally important topic that ensures our carsharing dream stays safe and secure – literally! That’s right, insurance may sound like a mundane topic to your average person, but for us (and carsharing operators everywhere!) it is the support that keeps the whole operation standing upright. 

Getting the Green Light on Insurance Coverage

Insuring hundreds of cars that can be used by countless people on any given day is, unsurprisingly, not going to be easy.  But that is the reality that carsharing operators face. The process of decreasing risk and vehicle damage all while obtaining a favorable rate is a balancing act to reach that sweet spot which is satisfactory for both insurance companies and the carsharing operator. 

Carsharing vehicles need insurance protection not only on the go, but also when parked and awaiting new users.

So how do we achieve that balance? Luckily for us, we could confidently propose details that would appease insurance providers and satisfy customers thanks to our years of experience operating Leo & Go in Lyon.

Responsibility and Risk Management

At the same time, it is crucial to display to potential insurance providers that we have the technical knowledge, tools and experience to guarantee a low-risk environment for the vehicles they will be covering. It all starts with customer registration – the critical first step needed in order to keep risk under control. We were able to accomplish it by setting up a complete registration process including strict security measures such as fraud prevention prior to the vehicle rental.

The registration process is the critical first step of preventing fraud.

During the rental, risk behavior alerts and the ability to secure the car via lock and immobilization further guarantees the safety of the fleet. Finally, a mandatory post-damage report and AI damage management system lets the team know immediately about any damages incurred. All users must be at least 21 years of age in order to register, and the process requires biometric identification in addition to standard ID, driver’s license, and proof of address. In addition, damage checks are mandatory at the beginning of each new rental, ensuring that drivers exercise caution while driving and report any potential damages as soon as possible.

Sealing the Deal

The process took a lot of long-term deliberation for both parties, as for us it was very important that we not only find a competitive insurance provider, but a true partner who can work with us by using their expertise and recommendations to further reduce risk and damages. In the end, we were lucky enough to garner interest from several insurers and managed to successfully conduct negotiations with potential partners thanks to our proven risk management experience. 

Insuring an entire fleet of vehicles is a very expensive (yet essential) step for shared mobility companies, and it’s no surprise that negotiations took months to come to an agreement that satisfied all parties. But after four months of work, we celebrated signing our contract just last week! 

Next Time on From Zero to Launch: Montreal Carsharing 

Join us again in two weeks for the BIG REVEAL, when we will unveil our carsharing company name and logo! Stay tuned for more information, you will not want to miss it! 

Be sure to subscribe to our limited-time newsletter to stay up to date with all of the inside information as we get closer to the launch! 

Past episodes of From Zero to Launch: Montreal Carsharing: 

Episode 1: The one where they figure out how to launch a carsharing service in just 8 months

Episode 2: The one where they put the “car” in “carsharing”

Episode 3: The one where they build their dream team