Ángel Sánchez, partner and director of Linkerdrive, explains the conditions of this Madrid company that have led it to be a finalist in the CEPYME 2022 Awards, in the SME Entrepreneurial Project category.
How did you decide to apply for the CEPYME Awards? What conditions does your company meet to attend them?
We thought it was an excellent opportunity to publicize our business model and our main objectives: to provide flexibility to traditional leasing and thus promote the renewal of the car fleet, which has an average age of 13.5 years, and, therefore, encourage the sustainable mobility.
Regarding the conditions, we are an entrepreneurial project and also a pioneer in our field. Currently, no other company offers advice and support to transfer the rental contract of a vehicle.
Do you think that the CEPYME 2022 award could improve your company’s image with customers, suppliers and future investors?
For sure. Having an award from an organization like CEPYME, which has a proven track record in defending and representing the interests of small and medium-sized companies, would give Linkerdrive a seal of guarantee, quality and solvency. We were born only a year and a half ago and this recognition would help us to continue consolidating our brand among clients, suppliers and, of course, to attract investors in future rounds of financing.
How has your company dealt with the increase in costs and the consequences of the pandemic?
In our case, we cannot make a comparison with pre-pandemic times because Linkerdrive did not yet exist. But what we have noticed is that, at a general level, society has realized that it is more important to enjoy things than to own them. This change in mentality has also erupted in the automotive sector and has added to other challenges it faces: the global economic crisis, the increase in the price of cars and what will be the predominant energy in the medium/long term. . All this is making rental formulas gain more and more weight when it comes to wanting to enjoy a car.
For this reason, for companies like Linkerdrive, which aims to provide flexibility to a rental model such as leasing, this whole scenario represents a moment to consolidate and increase its activity.
What measures have you adopted to face this new crisis caused by inflation and the lack of some supplies?
In our case, we continue to focus our efforts on making ourselves known; in reaching that person who wants or needs to cancel their leasing contract in advance and, on the other hand, to those interested in being able to access the leasing of a state-of-the-art vehicle. And precisely, this lack of supplies makes many people consider other options, such as renting, something that might not have aroused their interest before. Linkerdrive wants to play a leading role as a strategic agent to respond to these great challenges that affect the automotive sector and sustainable mobility.
Objectives and main challenges of your company for the coming years
Linkerdrive is a startup very recent, so we are in the take-off and consolidation phase, although we have noticed a growing interest in this type of service. We are already close to 30 monthly transfers on average and we hope to exceed 100 before the end of the year. Our goal is to reach 500 monthly transfers on average within 5 years, only in Spain. Also, among our future plans are the internationalization or the subrogation of other types of contracts such as the so-called multi-option offered by the car brands themselves.
How did you decide to start a business? How did the idea come about?
As I mentioned, the change in market mentality is a reality. More and more people are betting on models such as renting, paying a fixed fee per month to have an “all inclusive”. But to obtain minimally attractive leasing installments, you have to go for contracts of 48 months on average which, together with the high costs of early cancellation (normally 50% of the outstanding installments), represent a great handicap. On the one hand, current customers feel trapped and, on the other, potential customers are afraid to try leasing.
If, on the one hand, there are trapped users and, on the other, a growing demand for pre-owned car leasing due to the advantages of “all-inclusive”, why not help to match this supply and demand? This is how Linkerdrive was born.
What have been the main obstacles?
We have encountered the usual obstacles of a company that is a pioneer in its field. It is worth noting the great lack of knowledge on the part of users regarding the possibility of transferring a leasing contract. Therefore, our first efforts were focused on achieving a platform that would provide an agile, personalized and quality service. And, immediately afterwards, we focused on making ourselves known among people who want to get out of their contract early, among those who are looking for renting a pre-owned car and among the leasing companies themselves, since they are the fundamental part for carry out subrogations. In fact, many of them already consider us a partner strategic, because we help them to strengthen and consolidate the relationship with their clients, to increase the volume and rotation of their fleet and to extend the useful life of their vehicles.
Have you received any kind of support?
Linkerdrive started its activity in June 2021. In October of that same year, it closed a financing round to strengthen the business model and to digitize the surrogacy process through a simple, attractive and transactional website.
This year we would like to close a new round of financing with the aim of launching an ambitious development plan at a national level and starting the international expansion of Linkerdrive throughout Europe.
How do you assess the entrepreneurial system in Spain?
The entrepreneurial ecosystem in Spain has a lot of potential and is becoming more and more mature. According to data from the 2022 Entrepreneurship Map from South Summit and IE University, startups Spanish women already reach 3 years of average life, although it is still below other countries, such as the United States or the European average.
In addition to aid and support from the Public Administration, it is essential to promote an entrepreneurial culture in profiles of any age, because I firmly believe that entrepreneurship does not understand those things. Each person, no matter how old they are, can contribute great value based on their aptitudes, their concerns, their character, their experience or their area of expertise.