Mobile Macs was founded in 2015 when the entrepreneurs who started the businesses identified a need in the quick service restaurant (“QSR”) franchise industry for a reliable, cost effective, hassle-free solution to meet the growing demand by consumers for a delivery service. In order to capitalize on this need, Mobile Macs developed a unique business model that enables it to leverage the economies of scale that makes it feasible to offer QSR franchise owners a full maintenance rental plan for their delivery fleets. The unique proposition from Mobile Macs over the conventional full-maintenance rental offerings, is that their model includes regular onsite servicing, a fully serviced workshop, branding and delivery boxes and a dedicated spray booth.
Given Mobile Macs unique offering, the company grew substantially in its first year with a fleet of over 800 scooters. The continued growth that Mobile Macs was experiencing prior to the investment required the founding shareholders to seek a capital investment to enable the business to grow to the next level. As a relatively new business, Mobile Macs needed a new, reliable, partner to assist in its growth aspirations.
Westbrooke Alternative Rental Income Assets Limited’s (“Westbrooke Aria”) as a Section 12J company has a strategy and mandate to partner with reputable operators/entrepreneurs in providing their rental businesses with growth capital. From a Westbrooke Aria perspective, the investment opportunity met its mandate and provided an exciting investment for capital to be provided to grow the Mobile Macs scooter fleet and enhance Mobile Macs ability to further leverage its operational efficiencies.
Westbrooke was also attracted by the fact that the invested capital will increase scooters on the road and assist QSR franchisees in growing their businesses whilst providing new jobs for scooter delivery drivers. With the injection of the Westbrooke Aria capital, Mobile Macs has been able to increase its fleet size to 1,500 scooters as well as increasing its service and product offering. In the 24 months since Westbrooke Aria’s involvement in Mobile Macs, the company’s growth has resulted in a nearly 50% increase in direct employment with its staff complement rising to 55. This includes staff in the sales team, mechanical team and back office team (including a new Financial Director). Given the specialized nature of the mechanical business, Mobile Macs has been able to train and develop staff in the servicing, maintaining and repair of delivery scooters. At the same time, no fewer than 400 new jobs have been created for scooter drivers, who can take comfort in the fact that they are driving well maintained and safe scooters. Going forward, it is believed the ability of franchisee owners to quickly and affordably put and keep delivery scooters on the road will translate into the creation of even more jobs.
With the additional capital, Mobile Macs has been able to expand its customer base to ensure the business has a wider range of clients whom operate under different franchise brands. This will ensure the sustainability of the business and reduce reliance on a single client.
Mobile Macs group has managed to increase its top line income by 62% since investment with an increase in EBITDA of 51%. The performance of the business and rental fleet has been in line with the Westbrooke Aria’s projections and is expected to meet the required return on investment.
“The involvement of Westbrooke in our business has been an absolute pleasure, it has made a huge difference to our growth ambitions,” Hesselberg said. “When we sign a deal with a franchisee for however many bikes are required, we know we have the equity to fulfill the capital required to provide the rental. It’s a smooth, hassle-free process that both we, and our customers, appreciate.”