Why We Invested in Caroo

A convenient, cost-effective, and sustainable alternative to car ownership

Since founding Loggerhead Ventures, our mission has remained clear: to collaborate with climate-smart founders who create game-changing solutions and challenge traditional norms to address the environmental crisis — a challenge that is as complex as it is urgent.

From the moment we were introduced to Caroo, we were drawn to its multifaceted approach to urban mobility. Caroo does more than solve a transportation problem; it provides a powerful response to environmental and societal challenges — combining sustainability, cost-effectiveness, and smart urban planning in one seamless service.

But our decision wasn’t based on the business idea alone. What stood out was the Caroo team: adaptive, technically skilled, and deeply attuned to user behavior and market shifts. As our CEO, Dr. Evangelos Kosmidis, notes:

Our decision to invest in Caroo was driven primarily by the strength of its founding team — individuals with deep understanding of the evolving business landscape and the expertise to execute effectively. Just as importantly, their business model aligns perfectly with our fund’s mission to support ventures that prioritize ESG goals and deliver measurable environmental and social impact.

The Problem

Caroo addresses three urgent challenges in Greek urban mobility:

In Athens, daily commuting remains a struggle for thousands of residents, with limited flexible and affordable transportation options.
Private car ownership continues to rise, becoming a major contributor to greenhouse gas emissions.
Car rental companies face low asset utilization and profitability gaps due to seasonal fluctuations, with fleet usage dropping to as low as 20% during off-peak periods.

The Solution

Caroo offers a free-floating car-sharing solution that enables residents of Athens to access vehicles on-demand for minutes or hours via the Caroo App. Users locate the nearest available vehicle, unlock it via the app, drive, and then park it within designated public spaces across the city. With no need to visit a rental station, the experience is as seamless as it is flexible.

The app features carbon footprint tracking, trip history, and vehicle filtering by distance or fuel type. Crucially, it also allows split billing among passengers — reinforcing the collaborative, community-driven nature of the service.

Behind the scenes, Caroo forms strategic partnerships with car rental companies, utilizing their idle fleet during off-peak seasons. This B2B component not only offers rental agencies a new revenue stream but also reduces vehicle underutilization — a model that enhances operational sustainability and addresses one of the industry’s key inefficiencies.

The Impact

Caroo sets a new benchmark for sustainable, smart mobility in Europe by:

Reducing pollutant emissions, already achieving a 36% reduction in its first year compared to traditional car usage.
Promoting shared mobility that eases urban congestion and improves parking availability.
Aligning with ESG goals, supporting greener cities and more sustainable urban living.
Lowering mobility costs for users by removing the burden of ownership-related expenses (insurance, maintenance, taxes).
Improving air quality and health outcomes, through the use of newer, electric or hybrid vehicles.
Enhancing road safety, with regular fleet inspections and maintenance.
Empowering user choice, offering real-time data and insights into CO₂ savings and usage behavior.

As Mr. Grigoris Chatzikostas, General Partner at Loggerhead Ventures, puts it:

We have identified an adaptable and qualified team that values the feedback it receives and constantly improves its product, focusing on environmental and social benefits. At the same time, the team combines two crucial characteristics for the successful development of a startup: a strong technical background and a solid business culture.

Why Car Sharing Matters

Car sharing is a key pillar of the sharing economy, a global trend transforming how people access and use services. In Europe’s urban centers, this model is increasingly popular — especially among younger generations who are environmentally conscious and favor flexibility over ownership.

This shift isn’t just cultural — it’s aligned with the EU’s Green Deal goals for smart, sustainable mobility. Services like Caroo enable:

Broader access to transportation where public transit may fall short,
Significant emission reductions by replacing old private vehicles with cleaner, shared alternatives,
More livable urban spaces, with less congestion and pollution.

Looking Ahead

Caroo currently serves over 9,000 registered users and partners with four car rental companies, with expansion plans underway across and beyond Athens.

As Mr. Vassilis Andreou, General Partner at Loggerhead Ventures, concludes:

Caroo has the potential to gain significant market share. The founders’ team focuses on the environment but does not overlook financial viability, which will ensure the responsible development of its business idea for the benefit of society.