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Fruidel turns to fleet rental to aid growth

Start-up faced a familiar challenge for many SMEs; how to grow the business without making long-term financial commitments and avoiding tying up cash flow necessary for the day to day running.
Fruidel

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14 February 2019

MOBILISING a fleet without having to make a long-term commitment to vehicle acquisition and maintenance has helped fruit delivery company, Fruidel to grow.

The key ingredient has been Europcar UK which is the transport partner underpinning the company’s service, delivering fruit baskets to over 3,000 offices across the UK.

Founded in January 2016, as a start-up Fruidel encountered a familiar challenge for many SMEs; how to grow the business without making long-term financial commitments and avoiding tying up cash flow necessary for the day to day running.

Europcar’s long-term van rental proposition – Advantage for Vans – is the perfect fit, supporting the company’s ambitious growth strategy without the capital restrictions of outright vehicle ownership.

Following a successful 2018, Fruidel is aiming to double its turnover in the next year and has signed an agreement for Europcar to supply more than 40 Mercedes Sprinters, all liveried with the Fruidel brand.

Stephen Bohen, Founder and CEO, Fruidel, said: “We needed a flexible option that didn’t involve tying up capital on outright vehicle acquisition. As our business expands so do our transport needs. We’ve grown at an unprecedented rate and the flexibility of Europcar’s long-term rental service has enabled us to double the size of our fleet in line with this demand.

“We’re due to take on 20 more Vans in 2019 without the significant outlay that would’ve come with acquisition.

“Leasing was more flexible than acquisition but it didn’t give us any of the maintenance benefits that we get from Europcar. All of our costs fall under one bill with Europcar Advantage for Vans.

“The young age of the Mercedes vans means reliability is high. But if there is an issue our bill includes things like servicing, maintenance and even replacement tyres. And for any vehicle issues, Europcar come to us meaning our vehicle downtime is kept to an absolute minimum.

“Long-term rental provides Fruidel with all of the advantages of an ‘owned’ fleet but with these additional benefits bundled into one price. The clarity that this gives us means that we’re in a great position to make informed financial decisions to plan for the future growth of the business.”

An extensive commercial fleet also played a part in Fruidel’s decision. Bohen added: “Europcar gives us access to exactly the sort of vehicles we need for our day-to-day operations.

“We regularly deliver to big corporate businesses in areas like Canary Wharf where image is vital. The Mercedes Vans that are all liveried with our branding are perfect for this.”

Stuart Russell, Director Commercial Vehicles, Europcar UK Group said: “As a young, growing business with an ambitious strategy for growth Fruidel needed a transport partner that could effectively underpin its service without significant financial outlay.   They needed a partner that could be flexible as well as cost-effective which we can clearly deliver.”

 

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Chris Wright

Chris Wright

Chris Wright has been covering the automotive industry nationally and internationally for 30 years. Following spells with consumer titles he became News Editor of Automotive Management (AM), Editor of Automotive International, International Editor for Detroit-based Automotive News, and Editor of Dealer Update. He has also co-authored several FT Management Reports and contributes regularly to Justauto.com

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