Singapore rental company expands - Car Rental News
Singapore rental company expands
Car Rental News - 16/03/2009
Eric Cheng attributes ECG Group success to the economy.
Cheng, the 34-year-old managing director of the ECG Group of Companies said that those who can’t afford to buy during the downturn are renting.
This idea of renting or “borrowing” is the principle behind his rental car operation, ECG Car Rental, and now his more recent endeavour, SG Yacht, which is a luxury yacht chartering business.
Cheng and his 36-year-old partner, Wilson Sho, launched the yacht rental business as the financial crisis took hold last September.
According to Cheng the company is showing an average net profit of $45,000 per month.
The yacht charter business is reporting a 75 per cent booking rate every month, he added. Last month, a venture capitalist consortium offered to buy the business from Cheng and his partner for an undisclosed amount, although he didn’t reveal the details of the offer.
Cheng noted: “Our business model is to let you try first, and if you find it's what you really want, then go ahead, purchase it.”
The first boat purchased by the chartering business was a $700,000 40-foot yacht. Since then, a second boat has been acquired – a $1.2 million, 50-footer; and a third will be added during the third quarter of 2009 - a $1.5 million 60-foot yacht.