Welcome!

News Feed Item

CommuterClub Reinvents How Commuters Purchase Season Tickets Through Peer-to-Peer Financing

LONDON, July 30, 2014 /PRNewswire/ --

  • Low cost financial plan for public transport season ticket, transforming them into cheaper, more convenient subscription service funded via peer-to-peer credit
  • Successful angel fund raise of close to $1mn, initially targeting London transport with plans to expand across the UK and in international market

CommuterClub reinvents how commuters access public transport; transforming the traditional season ticket into a subscription plan. Enabled by peer-to-peer lending, CommuterClub allows commuters to spread the large upfront cost of season tickets into monthly instalments, making them affordable and convenient for busy commuters. CommuterClub is available today to all Londoners after a successful beta.

The London start-up aims to tackle the growing burden of commuting for urban dwellers, through disruptive financial engineering. In London, commuters spend well over £1,500[1] on average on travel; yet of the capital's 2.5 million commuters who could save with a season ticket, less than 10% actually bought one[2]. This is despite annual savings of £200 versus the next cheapest ticket the Monthly[3].

Petko Plachkov, Founder and MD of CommuterClub: "Commuting costs are a big burden on urban workers, taking as much as 20%[4] of income. We want to help by delivering a cheaper, easier and more convenient version of the season ticket that all commuters can afford.

The season ticket market in the UK is worth almost £2bn[5] and has hardly changed in decades despite innovations such as smartcards. We use the digital ticket as a platform to transform the way consumer access public transport. Our inspiration was to make it as easy and convenient as Netflix."

CommuterClub designed a product to meet the needs of commuters

  • Big savings: 10% cheaper compared to next cheapest ticket, the Monthly. Further savings from partner offers such as Uber and Time Out
  • Convenient: Pay for public transport via safe and hassle-free Direct Debits
  • Low cost: All in interest of just 5.6% with no hidden fees
  • Flexible: Easy cancellation with no lock-up or penalties

CommuterClub works with smartcard tickets to reduce risk and lower interest cost, meaning commuters keep more of the savings of season tickets. This innovative approach has enabled CommuterClub to process close to $1mn in loans with acceptance rates of 90% and no credit losses. For financing, CommuterClub decided to bypass the traditional banking system and work with RateSetter, the UK's largest peer-to-peer lending platform by monthly volume, to fund all customers. CommuterClub works with one of the UK's biggest transport operators, Abellio, who issue all tickets. 

The company has raised close to $1mn in angel funding and is backed by leaders in the financial space including Kevin Reynolds, (BridgePoint, Pret-a-Manger, Tilney, 1st Credit) and Will Becker, founder of the UK's leading credit card comparison website Totally Money.

Notes to editors 

  1. Based on Freedom of Information requests submitted to TfL
  2. Based on TGI Survey 2014 Q2
  3. Season tickets are priced across the UK to a formula of 1 Annual = 10.4 Monthly = 40 Weekly
  4. Based on analysis of HMRC Income Statistics compared against cost of year's commuting
  5. Based on Office of Rail Regulator analysis

About CommuterClub 

CommuterClub wants to transform how commuters access public transport tickets, offering a low cost financial plan for the season ticket to make it more affordable, convenient and suited to modern consumers.

CommuterClub allows commuters to spread the large upfront price into affordable monthly payments, transforming access to public transport into a subscription model, 'a Netflix for commuters'. CommuterClub is enabled by the growth of smartcard tickets and peer-to-peer funding to offer the lowest possible cost directly to consumers.

CommuterClub was founded by two frustrated Londoners, Petko Plachkov and Imran Gulamhuseinwala looking for ways to lower their commuting costs. Since Jan 2014, CommuterClub has processed close to one million dollars in loans helping hundreds of Londoners save on their commute. 

CommuterClub is authorised and regulated by the Financial Conduct Authority and is based in London. CommuterClub works in partnership with Abellio Corporate Travel to source season tickets and RateSetter to fund loans.

For more information, please contact: Petko Plachkov, Founder and MD - CommuterClub, L: +44(0)203-735-5602, [email protected]

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
SYS-CON Events announced today that ContentMX, the marketing technology and services company with a singular mission to increase engagement and drive more conversations for enterprise, channel and SMB technology marketers, has been named “Sponsor & Exhibitor Lounge Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York City, New York. “CloudExpo is a great opportunity to start a conversation with new prospects, but what happens after the...
SYS-CON Events announced today that AppNeta, the leader in performance insight for business-critical web applications, will exhibit and present at SYS-CON's @DevOpsSummit at Cloud Expo New York, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. AppNeta is the only application performance monitoring (APM) company to provide solutions for all applications – applications you develop internally, business-critical SaaS applications you use and the networks that deli...
As organizations shift towards IT-as-a-service models, the need for managing and protecting data residing across physical, virtual, and now cloud environments grows with it. Commvault can ensure protection, access and E-Discovery of your data – whether in a private cloud, a Service Provider delivered public cloud, or a hybrid cloud environment – across the heterogeneous enterprise. In his general session at 18th Cloud Expo, Randy De Meno, Chief Technologist - Windows Products and Microsoft Part...
The cloud era has reached the stage where it is no longer a question of whether a company should migrate, but when. Enterprises have embraced the outsourcing of where their various applications are stored and who manages them, saving significant investment along the way. Plus, the cloud has become a defining competitive edge. Companies that fail to successfully adapt risk failure. The media, of course, continues to extol the virtues of the cloud, including how easy it is to get there. Migrating...
WebRTC is bringing significant change to the communications landscape that will bridge the worlds of web and telephony, making the Internet the new standard for communications. Cloud9 took the road less traveled and used WebRTC to create a downloadable enterprise-grade communications platform that is changing the communication dynamic in the financial sector. In his session at @ThingsExpo, Leo Papadopoulos, CTO of Cloud9, will discuss the importance of WebRTC and how it enables companies to fo...
As machines are increasingly connected to the internet, it’s becoming easier to discover the numerous ways Industrial IoT (IIoT) is helping to shape the business world. This is exactly why we have decided to take a closer look at this pervasive movement and to examine the desire to connect more things! Now if you need a refresher on IIoT and how it is changing the world, take a moment and listen to Greg Gorbach with ARC Advisory Group. Gorbach believes, "IIoT will significantly change the worl...
SYS-CON Events announced today the Docker Meets Kubernetes – Intro into the Kubernetes World, being held June 9, 2016, in conjunction with 18th Cloud Expo | @ThingsExpo, at the Javits Center in New York, NY. Register for 'Docker Meets Kubernetes Workshop' Here! This workshop led by Sebastian Scheele, co-founder of Loodse, introduces participants to Kubernetes (container orchestration). Through a combination of instructor-led presentations, demonstrations, and hands-on labs, participants learn ...
The IoT is changing the way enterprises conduct business. In his session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, discuss how businesses can gain an edge over competitors by empowering consumers to take control through IoT. We'll cite examples such as a Washington, D.C.-based sports club that leveraged IoT and the cloud to develop a comprehensive booking system. He'll also highlight how IoT can revitalize and restore outdated business models, making them profitable...
SYS-CON Events announced today that MangoApps will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. MangoApps provides modern company intranets and team collaboration software, allowing workers to stay connected and productive from anywhere in the world and from any device. For more information, please visit https://www.mangoapps.com/.
SYS-CON Events announced today that Super Micro Computer, Inc., a global leader in Embedded and IoT solutions, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Supermicro (NASDAQ: SMCI), the leading innovator in high-performance, high-efficiency server technology, is a premier provider of advanced server Building Block Solutions® for Data Center, Cloud Computing, Enterprise IT, Hadoop/Big Data, HPC and ...
In his session at 18th Cloud Expo, Andrew Cole, Director of Solutions Engineering at Peak 10, will discuss how the newest technology advances are reducing the cost and complexity of traditional business continuity and disaster recovery solutions. Attendees will: Learn why having a full disaster recovery strategy is more important now than ever before Explore the key drivers of a successful disaster recovery solution Achieve measurable operational and business value from a disaster recovery ...
SYS-CON Events announced today the How to Create Angular 2 Clients for the Cloud Workshop, being held June 7, 2016, in conjunction with 18th Cloud Expo | @ThingsExpo, at the Javits Center in New York, NY. Angular 2 is a complete re-write of the popular framework AngularJS. Programming in Angular 2 is greatly simplified. Now it’s a component-based well-performing framework. The immersive one-day workshop led by Yakov Fain, a Java Champion and a co-founder of the IT consultancy Farata Systems and...
How will your company move to the cloud while ensuring a solid security posture? Organizations from small to large are increasingly adopting cloud solutions to deliver essential business services at a much lower cost. According to cyber security experts, the frequency and severity of cyber-attacks are on the rise, causing alarm to businesses and customers across a variety of industries. To defend against exploits like these, a company must adopt a comprehensive security defense strategy that is ...
SYS-CON Events announced today that Hanu Software will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Leveraging best-in-class people, processes, and technologies, Hanu provides high-quality, high-value software development and business process outsourcing services to independent software vendors (ISVs) and enterprises.
What a difference a year makes. Organizations aren’t just talking about IoT possibilities, it is now baked into their core business strategy. With IoT, billions of devices generating data from different companies on different networks around the globe need to interact. From efficiency to better customer insights to completely new business models, IoT will turn traditional business models upside down. In the new customer-centric age, the key to success is delivering critical services and apps wit...