We had the opportunity to interview Rodrigo de Guzman, the founder and CEO of Borrow, the first and only all-BEV car subscription company in the world.

Q: Can you tell us a bit about yourself and Borrow?

A: My name is Rodrigo de Guzman, I am the Founder and CEO of Borrow, the first and still the only all Battery Electric Vehicle (BEV) subscription car company in the world.  We launched the Borrow subscription service here in our home market of Los Angeles in July 2017.

Q: How did you get the idea for Borrow?

A: My co-founder Jon and I have always been committed to disrupting the automotive industry. Our original idea centered on traditional leasing and quickly morphed into subscriptions. Once we added EVs to the equation, Borrow caught fire.   

Q: At what point did you realize you had a viable business model?

A: Pretty much right away. We launched our website and immediately had customers as well as our first institutional investment from Mucker Capital.  The immediate demand caught us by surprise and I took that demand straight to the car dealership which is how we purchased the first 8 cars in our fleet.  

Q: Did you hit any roadblocks that almost caused you to throw in the towel?

A: We are a team of Doers.  Instead of putting our resources into R&D, we launched our service and dove into all things related to marketing and operations.  Once we started to seriously fundraise we ran into the challenge of fundraising all over the country while also tending to an active business with real customers and revenue. Simultaneously growing the business while seeking institutional investors has been challenging, but I never considered throwing in the towel.

Q: Have you had any traction and/or achieved any milestones?

A: We have raised over $150,000 on Republic from 900+ investors, added the Kia Soul EV and Hyundai Ioniq EV to the fleet, and saw a 4X increase in monthly reservations.

Q: Where do you see the company in 5 years and how do you plan to get there?

A: In 5 years, there will be well over 1,500,000 EVs sold globally on a path to 3,000,000 in 2028.  We intend to be right there providing EVs on a subscription basis to anyone worldwide.

Q: Is there any advice you'd give to other aspiring entrepreneurs?

A: I encourage aspiring entrepreneurs to nurture their ideas by iterating over and over until you get the magic combination of Product Market Fit and Traction.  This may sound harsh, but ideas are the easy part.   Turning those ideas into a viable business with demand and a path to substantial revenue is by far the greatest measuring stick. 

Q: With many car rental companies struggling with COVID-19, how has that affected your short term/long term plan?

A: COVID-19 has been a game changer and forced us to adapt and react quickly.  We had a slight downturn in business in March and then signs of a rebound in May.  We quickly identified essential workers as not only a strong customer segment but also a beneficiary of social good efforts. With Goodyear (GT) and Cedars Sinai, we provided free (sponsored) and discounted cars to frontline healthcare workers and will continue to do so even as the country rebounds from the pandemic. 

Q: What makes your company different from others in your space? What are your competitive advantages?

A: There have been many entrants into the subscription car space.  We have seen competition from auto manufacturers, rental car companies and other startups.  And, we have seen failed attempts in all those sectors.  What sets us apart is our commitment to both an all-EV fleet and commitment to our customers.  We hold the bar high when it comes to providing our customers with the easiest automotive experience they’ve ever had and with the best EVs available to them.  Gone are the days of dealing with extensive paperwork and dealership visits.  We have made personal mobility convenient (service) and technologically advanced (the EVs).  

Q: What is the main benefit that your company provides to the electric car world?

A: Borrow makes EVs available to everyone. From our Campus category starting at $199 per month all the way up to our Platinum category (Tesla Model S), the service is perfect for the first time EV driver as well as the veteran EV owners.  With as short as a 3-month commitment, the Borrow service makes it easy for drivers to test out the EV lifestyle. For many users, after spending a few months in an EV, they are hooked, often buying their own at the end of their term or renewing their Borrow subscription.

Q: How has creating Borrow changed your life?

A: I am appreciative every day that I get to run a business working with what I love: cars.  I’ve turned a passion project into a meaningful business and I’m proud of the team we have assembled - and especially proud that we’re delivering value to our customers while helping save the environment at the same time. 

Q: Is there anything else you want to share with our audience?

A: Borrow is growing and you can be a part of it.  We launched our fund raise on Republic and you can invest with as little as $50.  Our momentum is strong - we hit our milestones earlier than expected.