Warren Henry-Affiliated Car Subscription Startup in Negotiations to Expand to New Markets
A startup founded by executives at one of South Florida’s largest private companies is in talks to expand its subscription service beyond South Florida.
Since it launched in October in Broward and Miami-Dade counties, Davie-based FlexWheels has more than 80 subscribers who pay $1,200 to $2,800 a month to choose from an inventory of coupes, sedans, trucks and SUVs that can be switched out and delivered daily. The service can be paused and the price includes insurance and maintenance.
“The premise behind this is is provide consumers with all of the benefits of ownership, but none of the headaches or obligations,” said Erik Day, who co-founded the startup with Warren Zinn, CEO of Miami-based Warren Henry Automotive Group.
With more 3,000 downloads of the app since its launch, FlexWheels will launch a seed funding round in the next four months, seeking capital to target cities such as Los Angeles, San Francisco and New York for its expansion.
“Right now, we’re in discussions with stakeholders and firms that would help us take this business model to the next phase,” said Day, who is also CFO of Warren Henry Automotive Group. “Ideally, we plan to target strategic areas throughout the country and head toward the mainstream consumer, as they understand more about the subscription and what it entails.”
New FlexWheels members pay a $700 activation fee, plus a monthly payment. They can change vehicles three times a month or more, depending on their level of subscription, with each vehicle being driven up to 5,000 miles. Users pay for tolls and gas.
The service has notable customers including Miami Dolphins wide receiver DeVante Parker and Miami Heat forward James Patrick Johnson. Day said FlexWheels is popular with car enthusiasts, dual residents and foreign nationals.
Future additions to the service include partnering with businesses that provide vehicle allowances and mileage reimbursements, assisting potential customers with exiting their lease agreements and rolling out lower-priced options with pre-owned inventories within its dealer network.
“This business model creates a mobility services platform that’s turnkey and a solution for dealers in this competitive era as we begin to an evolution take shape with ride-hailing services and autonomous vehicles,” Day said.
FlexWheels has 21 employees and is a partner of Atlanta-based Clutch Technologies.
Warren Henry Auto Group is the No. 15 largest private company in South Florida with $541.31 million in revenues in 2016.