Swapp looking to drive MENA growth from new Dubai HQ

Founded by start-up executives, Swapp is disrupting the car ownership space, improving customer experience through technology and allowing for a more flexible, affordable way to use a car.

Co-founder, Danny Laczo, said: “Dubai is a natural place for us to launch our car subscription platform. With our regional experience in the mobility industry and the growing trend amongst consumers to subscribe to products and services over purchasing them, Swapp is meeting this demand in the car ownership space.”

Using Swapp, customers can opt to swap out or cancel their subscription after an initial one month period. Car models currently available on Swapp range from low budget options like the Kia Sportage or Toyota Yaris, through to GMC Yukons and SUVs like the Chevrolet Tahoe.

Globally, studies show consumers are opting for mobility usership over ownership. A study among Baby Boomers and Gen Z consumers showed that while about 75 percent of Baby Boomers consider owning a car a necessity, only 45 percent of Gen Z respondents think so.

Laczo added: “Consumers expect products and services to be digital, hassle free and competitive in price – and Swapp is doing just that in a market that until now has remained untapped. As a fast moving city with a heavily expatriate and young population, Dubai offers us a great environment to kickstart our MENA operations.”

Since 2015, more than $700 million in venture capital has poured into car subscription start-ups. Fair, launched in the US in 2016, topped the list in attracting equity funding (at $600m to date), although eight of the ten start-ups with at least $1m in equity funding are based in Europe.

Russell Hensley, co-leader of McKinsey’s Center for Future Mobility, has said that subscriptions can fill “the huge gap” between on-demand ride-hailing and multiyear leases. He projects that in the next five years car subscriptions in the US alone will move from the tens of thousands to 6m-11m units.