A start-up that wants luxury cars to earn their keep

CarShareNova was launched with a simple proposition – to enable everyday car owners to earn income from vehicles they already own, without the company itself holding any cars on its balance sheet.

Founded by engineer Themba Mgimeti, the platform positions itself as a peer-to-peer alternative to traditional car rental companies, by applying what he describes as a “two-sided” marketplace model familiar to South Africans through services such as e-hailing and short-term accommodation platforms like Airbnb.

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Unlike conventional car rental companies that operate from depots or airports, CarShareNova does not “store the cars” in any single location, says Mgimeti.

In practice, this means cars are available in residential neighbourhoods across Johannesburg, Cape Town, and KwaZulu-Natal, with a limited presence in smaller centres such as Polokwane.

“For example, we had one rental last week where the client said he knew the renter personally – he lived only two houses away from the client,” he adds.

‘Uber Black’-style wheels

The platform focuses on premium vehicles rather than economy rentals. Mgimeti says this was a deliberate choice after analysing how legacy rental companies operate.

“When you look at economy rentals, that’s where the big players are very strong … We looked at that and said, this is not the place to enter the market,” he says.

“But when you look at premium rentals, the big car rental companies’ model changes because they can’t buy those cars in bulk – and it costs more to store them.”

CarShareNova defines “premium” as the more luxurious vehicles typically found when ordering an “Uber Black” from e-hailer Uber. This is an area where Mgimeti believes traditional players lack volume. The premium vehicles include models, such as Mercedes Benz, BMW, Audi, Volvo and Lexus.

Cracking the cover conundrum 

Insurance emerged as one of the biggest early obstacles. When the business started, rentals were limited to Mgimeti’s own vehicles and those of friends, with no formal cover in place.

“We launched with just our cars,” he says. Attempts to secure blanket insurance proved very expensive, with one quote coming in at R18 000 a month for a single vehicle previously insured for R3 000.

A breakthrough came through a partnership with Old Mutual, enabled by CarShareNova’s technology platform and the background of co-founder Lebogang Mabala, who was Naked Insurance’s first software developer.

Together, they built a digital handover and return process that documents vehicle condition and verifies renters through licence scans, facial verification, and photographic records.

Read: Five myths about car insurance busted

“Through that, Old Mutual agreed to give us daily commercial insurance,” Mgimeti says, describing cover that activates only for the duration of a rental and switches off when the car is returned.

This structure also allows CarShareNova to avoid large refundable deposits, an old sticking point in the car rental market.

More recently, the company introduced deposit-waiver options through a fintech partnership with Eunifin – “a financial services provider focusing on the gig economy”, Mgimeti says.

Under this model, renters pay 15% of the deposit upfront, which is non-refundable. “If something happens, only then will the liability kick in.”

An ‘Airbnb’ for cars

Mgimeti’s path to founding CarShareNova is informed by experience across e-hailing and hosting short-term accommodation.

Read: Airbnb revamps app with luxury services, curated tours in push beyond stays

Raised in Tzaneen, he studied civil engineering and later completed a master’s degree focused on supply and demand before joining the e-hailing company Bolt.

“When I was working at Bolt, I was also hosting an Airbnb,” he says.

“It became clear to me that the way Airbnb functions for property … there should be something similar for cars.”

The platform currently lists close to 300 vehicles. The next phase involves raising funding to expand into more regions and build brand recognition. “We’re looking to raise money so we could enter more markets, get a billboard, and become a household name,” he adds.

‘Sweat your asset’ 

CarShareNova operates via a mobile app on iOS and Android, as well as a web platform, which Mgimeti says plays an important role in helping users discover rental options online. The name itself is intentional. “It’s a play on the word Casanova – and ‘carshare’, which is what we do.”

Listen: Bolt vs Uber: Zoning in on e-hailing car standards

Mgimeti says a big challenge is convincing people that cars are not assets that should be “hogged”. “There are better things to commit to. Car ownership should be about sweating your asset.”

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