How RideLender funded its scale-up to catch a wave of digital disruption

In 2019, the business took off quickly, purchasing vehicles to meet driver demand and expanding interstate from Sydney to Perth and, more recently, into Singapore. It has now helped over 3,000 drivers rent vehicles for ride-share platforms, delivery services, and private rentals.

Shane says the business was “constantly adding to its diversified vehicle fleet” and previously relied on dealer or vendor loans with higher fees to secure new vehicles. Shane explains that over time, “a lot of those financiers moved out of the market we were in,” leaving the business searching for reliable financial support as it sought to rapidly expand.

This expansion included not only a growing fleet but a larger operational footprint and cost base. At that time, Shane also sought to purchase new business premises and consolidate the company’s debts. Shane says the challenge was to find a single partner to satisfy RideLender’s diverse lending needs and back his long-term growth ambitions.

As Shane was assessing his options, he met with a CommBank Relationship Manager to map out his business model and growth plans. RideLender had previously secured smaller loans with CommBank, with Shane turning his focus to how RideLender could establish a larger, holistic funding relationship.

Considering the business’s growth profile, Shane prioritised flexibility, commitment, and competitive pricing, which were crucial factors in his decision to partner with CommBank. Shane could now more confidently plan for the next phase in RideLender’s future success.

Streamlined support fuels RideLender’s vision

Working with a CommBank Relationship Manager to match RideLender’s business and lending needs, Shane secured a CommBank vehicle and equipment facility to provide a rolling line of funding to acquire its ever-growing fleet and a CommBank BetterBusiness Loan to meet operational costs and refinance debt on more attractive terms. Shane says that since then, facility limits have increased incrementally every six months as RideLender’s business grew.

Using CommBank’s vehicle finance, RideLender has acquired multiple vehicles to service existing and new drivers and business customers. Shane notes that RideLender also uses CommBank’s business transaction accounts and Smart EFTPOS terminals, enabling drivers to accept payments and access takings on the same day.

“We’re now one of the top three Uber-endorsed rental vehicle operators with the infrastructure to offer a high-quality experience to drivers and passengers,” Shane says. “We’re also proud to be supporting many high-earning drivers.”

According to Shane, “The business is still on a steep growth trajectory, and it’s important to have partners in it for the long haul”. He adds that “having one reliable provider for multiple banking needs drives efficiencies and could see early on that our banker supported the business model and understood what we were trying to achieve.”

“There is also a strong alignment in the way we work. I try to be really responsive to customers, and I could see CommBank was like that as well. We probably have the best banker I’ve ever had. He knows us, and I get any questions answered within minutes so I can get back to focusing on the business,” Shane says.

Resilience and determination win out

RideLender has successfully navigated many waves of change. After receiving support from Uber and gaining early market traction, regulatory reform enabled larger rental companies to set up lower-priced offerings.

However, RideLender remained resilient while other players exited. “The model has stood the test of time, and I am excited to grow it uninterrupted.” Shane says.

Shane says he looks forward to working with CommBank and broadening the relationship to fund the continued expansion of RideLender’s operations, including increasing limits where possible to do so. He says it provides confidence to have an aligned banking partner that “sees the bigger picture”.

For Shane, growing RideLender’s footprint in Australia with CommBank’s backing has helped establish a formidable presence. That growth journey continues with the expansion into Singapore. Shane says it presents the potential to “have a few hundred cars there easily, and a thriving business if we can get the economics of the opportunity right.”