CarKlop allows French shoppers to share car rides for cross-border journeys to buy cheaper cigarettes and alcohol in other EU countries such as Italy.
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CarKlop, a new car-sharing service that allows users to organise cross-border journeys from France to buy cheaper goods such as cigarettes, has rattled the tobacco industry.
The platform was launched in France on 11 September, with people sharing car rides to France or Belgium to six destinations: Germany, Switzerland, Italy, Spain, Luxembourg and Andorra.
It facilitates cross-border return journeys for users who want to save money at a time when inflation has reduced the purchasing power of French citizens. The name of the platform is a play on the word clope, a slang term for cigarette in French.
"I created CarKlop out of a personal frustration," CarKlop's founder Philippe Poulard said in a recent statement. "Living close to the German border, I discovered that I was paying almost three times as much for cigarettes as my neighbours (in Germany)."
The creation of the platform has sparked a backlash from French tobacconists.
"It is completely absurd," Philippe Coy, president of the National Confederation of Tobacconists, said in an interview with Franceinfo.
"Taking people across the border means losing VAT and impoverishing local businesses."
Meanwhile, the French tobacconists' union said it is considering taking legal action against CarKlop because of the economic damage it could cause to the sector.
French shoppers face high prices
France has the most expensive cigarettes in Europe - costing 92% more than the EU average.
A packet of cigarettes costs an average of €12.50 in France, which is significantly higher than in neighbouring nations such as Italy (€6.20) and Spain (€5.90).
According to CarKlop, regular smokers can save up to €1,445 per year through cheaper cross-border shopping.
Food also costs more in France, at least 11% more than the European average, although the region's highest prices are in Switzerland and Luxembourg. In contrast, the cheapest market is Spain, where the French can save up to 15% on their spending.
The cheapest country to buy alcohol is Italy, with prices 15% lower than Europe's average. French citizens who travel to the peninsula to buy wine, beer and other drinks can save up to 16% on the final price.
"We live in Europe: we might as well take advantage of its benefits," said Poulard of CarKlop.
Most cross-border shopping trips tend to take place either individually, which is more expensive than car-sharing, or via Facebook groups that offer no guarantees over safety.
CarKlop's platform is not illegal, as long as users comply with legal purchase limits, such as four cartons of cigarettes and no more than ten litres of spirits, all for strictly personal use.
The company, which retains 15% in commission on trips, allows users to travel a maximum of two times a month.