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
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, wh...
So, you bought into the current machine learning craze and went on to collect millions/billions of records from this promising new data source. Now, what do you do with them? Too often, the abundance of data quickly turns into an abundance of problems. How do you extract that "magic essence" from your data without falling into the common pitfalls? In her session at @ThingsExpo, Natalia Ponomareva, Software Engineer at Google, provided tips on how to be successful in large scale machine learning...
In his general session at 18th Cloud Expo, Lee Atchison, Principal Cloud Architect and Advocate at New Relic, discussed cloud as a ‘better data center’ and how it adds new capacity (faster) and improves application availability (redundancy). The cloud is a ‘Dynamic Tool for Dynamic Apps’ and resource allocation is an integral part of your application architecture, so use only the resources you need and allocate /de-allocate resources on the fly.
Your business relies on your applications and your employees to stay in business. Whether you develop apps or manage business critical apps that help fuel your business, what happens when users experience sluggish performance? You and all technical teams across the organization – application, network, operations, among others, as well as, those outside the organization, like ISPs and third-party providers – are called in to solve the problem.
Information technology is an industry that has always experienced change, and the dramatic change sweeping across the industry today could not be truthfully described as the first time we've seen such widespread change impacting customer investments. However, the rate of the change, and the potential outcomes from today's digital transformation has the distinct potential to separate the industry into two camps: Organizations that see the change coming, embrace it, and successful leverage it; and...
SYS-CON Events announced today that Roundee / LinearHub will exhibit at the WebRTC Summit at @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. LinearHub provides Roundee Service, a smart platform for enterprise video conferencing with enhanced features such as automatic recording and transcription service. Slack users can integrate Roundee to their team via Slack’s App Directory, and '/roundee' command lets your video conference ...
Digital transformation is too big and important for our future success to not understand the rules that apply to it. The first three rules for winning in this age of hyper-digital transformation are: Advantages in speed, analytics and operational tempos must be captured by implementing an optimized information logistics system (OILS) Real-time operational tempos (IT, people and business processes) must be achieved Businesses that can "analyze data and act and with speed" will dominate those t...
The Jevons Paradox suggests that when technological advances increase efficiency of a resource, it results in an overall increase in consumption. Writing on the increased use of coal as a result of technological improvements, 19th-century economist William Stanley Jevons found that these improvements led to the development of new ways to utilize coal. In his session at 19th Cloud Expo, Mark Thiele, Chief Strategy Officer for Apcera, will compare the Jevons Paradox to modern-day enterprise IT, e...
There are several IoTs: the Industrial Internet, Consumer Wearables, Wearables and Healthcare, Supply Chains, and the movement toward Smart Grids, Cities, Regions, and Nations. There are competing communications standards every step of the way, a bewildering array of sensors and devices, and an entire world of competing data analytics platforms. To some this appears to be chaos. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, Bradley Holt, Developer Advocate a...
More and more companies are looking to microservices as an architectural pattern for breaking apart applications into more manageable pieces so that agile teams can deliver new features quicker and more effectively. What this pattern has done more than anything to date is spark organizational transformations, setting the foundation for future application development. In practice, however, there are a number of considerations to make that go beyond simply “build, ship, and run,” which changes ho...
SYS-CON Events announced today the Kubernetes and Google Container Engine Workshop, being held November 3, 2016, in conjunction with @DevOpsSummit at 19th Cloud Expo at the Santa Clara Convention Center in Santa Clara, CA. This workshop led by Sebastian Scheele introduces participants to Kubernetes and Google Container Engine (GKE). Through a combination of instructor-led presentations, demonstrations, and hands-on labs, students learn the key concepts and practices for deploying and maintainin...
Without a clear strategy for cost control and an architecture designed with cloud services in mind, costs and operational performance can quickly get out of control. To avoid multiple architectural redesigns requires extensive thought and planning. Boundary (now part of BMC) launched a new public-facing multi-tenant high resolution monitoring service on Amazon AWS two years ago, facing challenges and learning best practices in the early days of the new service. In his session at 19th Cloud Exp...
There is growing need for data-driven applications and the need for digital platforms to build these apps. In his session at 19th Cloud Expo, Muddu Sudhakar, VP and GM of Security & IoT at Splunk, will cover different PaaS solutions and Big Data platforms that are available to build applications. In addition, AI and machine learning are creating new requirements that developers need in the building of next-gen apps. The next-generation digital platforms have some of the past platform needs a...
SYS-CON Events announced today that Bsquare has been named “Silver Sponsor” of SYS-CON's @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. For more than two decades, Bsquare has helped its customers extract business value from a broad array of physical assets by making them intelligent, connecting them, and using the data they generate to optimize business processes.
SYS-CON Events announced today that ReadyTalk, a leading provider of online conferencing and webinar services, has been named Vendor Presentation Sponsor at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. ReadyTalk delivers audio and web conferencing services that inspire collaboration and enable the Future of Work for today’s increasingly digital and mobile workforce. By combining intuitive, innovative tec...