SoftBank and Singapore's Carro Launch Used Car Subscription Service, Seek to Grow Non-Telco Business

The morning of Sept. 20 saw Japanese mobile operator SoftBank Corp. and Carro, a Singaporean startup backed by SoftBank Vision Fund, reportedly enter into a partnership to launch a service that will allow users to use used cars in Japan for a fixed fee.

The two companies have formed a joint venture called Carro Japan with a 51 percent:49 percent stake, with SoftBank in the majority. The service went live on Tuesday.

Carro's artificial intelligence program is able to quote subscription rates based on a vehicle's pricing history and other factors. Customers will pay about 20 percent less than they would for a new car subscription, according to SoftBank.

Carro Japan will start with a B2B service, but they will consider launching one for regular subscribers.

Wait times for new car deliveries in Japan have been extended to six months or more due to supply chain disruptions. These conditions have increased consumer demand for used cars. Data from USS, Japan's largest used-car auction platform, shows that the average price of a used car sold in August this year soared 29 percent compared with a year ago.

With SoftBank's mobile unit struggling after offering low-cost communications packages in response to government pressure, the company is now looking to grow its non-telecom business.

Founded in 2015, Carro operates in Singapore, Thailand and other Southeast Asian markets. The startup streamlines the sale of used cars on its platform by using artificial intelligence to assist with pricing and sales. The company closed a $360 million round of funding last year, led by none other than SoftBank Group's Vision Fund.