In a push to expand its subscription offerings into Michigan, app-based Mobiliti has acquired subscription service Condor Detroit.
The deal will bring approximately four people from Condor to Mobiliti, CEO Chance Richie told Automotive News, including Condor CEO Tarun Kajeepeta and Aaron Bedell, head of operations.
Richie declined to disclose transaction details, but said the deal was a "significant investment."
Mobiliti, launched last year by entrepreneur couple Chance and Amanda Richie, brings dealers into the subscription service business and provides fleet service financing through its partnership with Ally Financial.
Mobiliti's monthly subscription fees range from $550 to $1,200 and cover insurance, maintenance and roadside assistance.
"Our model is totally different in that we have multiple manufacturers, any number of makes and multiple dealers in our network, which gives our customers a lot of choice, flexibility and selection that you're not going to find in the OEM programs," Richie said.
Last week, Mobiliti completed agreements with two suburban Detroit dealership groups, Tamaroff Auto Group and Bowman Auto Group, which will add six rooftops between the groups.
Mobiliti has 50 rooftops throughout the country, including Texas, Pennsylvania, New Jersey, New York, Michigan and a soon-to-be dealer partner in Florida, Richie said.
Under Mobiliti's agreement with Condor, Kajeepeta will be Mobiliti's COO and Bedell will be director of dealer services in the Midwest and will oversee all operations in the Detroit area, the company said in a statement.
Condor customers will see little change in the service, Richie said, and new subscribers will be able to manage their subscriptions through Mobiliti's mobile app and Condor's Web interface.
"They have a well-thought-out model that's a little bit different than Mobiliti in that it includes vehicle tiers and customer delivery, and we think that'll augment our model, which lets subscribers choose a very specific vehicle," Richie said. "We think there are a lot of elements of the Condor business plan that we're going to incorporate into what Mobiliti's already doing."
Richie met Kajeepeta during an interview with a weekly community affairs program in Michigan and said he was impressed by Kajeepeta's knowledge of the subscription service business.
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