Welcome to this episode of The Friday 5 with Steve Greenfield, Founder and CEO of Automotive Ventures, an auto technology advisory firm that helps entrepreneurs raise money and maximize the value of their companies.
Big news this week, as AutoNation announced that they are acquiring RepairSmith for $190 million dollars.
RepairSmith is a full-service mobile solution for automotive repair and maintenance. The company provides car repair and maintenance services intended to offer a convenient option for car owners. The company’s services help to get repaired cars delivered to the driveway or drop off with an upfront price, online booking, after-hours support, and a full warranty delivery, enabling car owners to maintain their cars conveniently.
Mike Manley, AutoNation’s Chief Executive Officer has noted on recent earnings calls AutoNation’s aim to redefine themselves as a “mobility services” provider, and not simply being perceived as a dealer group that sells and services vehicles.
The acquisition of RepairSmith expands AutoNation’s ability to penetrate the extensive After-Sales service market and conveniently respond to their Customers’ needs by broadening the reach of their existing After-Sales network.
The acquisition of RepairSmith will provide AutoNation’s After-Sales business with an additional channel to provide service to their existing Customer base AND introduce additional vehicle owners who have purchased vehicles outside the AutoNation dealer network.
There are other competitors to RepairSmith that could prove to be acquisition targets for other dealer groups that want to follow AutoNation’s lead.
Yoshi is a provider of on-demand vehicle re-fueling services that delivers gas to consumers for their vehicles. Earlier this year, Yoshi raised an undisclosed amount of money from Bridgestone. GM Ventures and ExxonMobil are also investors in Yoshi.
Wrench is a company that provides on-demand vehicle maintenance and repairs. In 2021, Wrench raised $34 million from Bridgestone.
Spiffy, a provider of on-demand car services intended to maintain fleet vehicle throughout their lifecycle, has raised $32 million dollars from companies like Shell Ventures and Goodyear Ventures.
And Automotive Ventures made an investment last year into NuBrakes, which offers mobile brake repair services, oil changes and other vehicle services to consumers and to fleets.
As dealerships look to diversify their business models and offer consumers more convenience around servicing their vehicles, we’ll watch to see if other dealer groups follow AutoNation’s lead and look to pick off one or more of these on-demand remote service providers.
Companies to watch
Every week we highlight interesting companies in the automotive technology space to keep an eye on. If you read my monthly Industry Intel Report, I showcase a few companies each month, and we take the opportunity here on the Friday 5 to share some of those companies each week with you.
MyAutoIQ allows you to increase dealership revenues with the right follow-ups to your customers.
MyAutoIQ allows you to revive lost leads without involving any additional dealership staff and increase monthly sales by 5%.
The reason that I love MyAutoIQ is that they use the combination of your data and their AI to craft follow-ups that are unique to every lead.
These follow-ups provide decision-aiding information relevant to the buyer, so they become engaged and return to your dealership when they are ready to buy.
MyAutoIQ works straight out of your CRM without involving any dealership staff.
You can check out MyAutoIQ at www.MyAutoIQ.com
Drōv’s Smart Trailer Powered by AirBoxOne offers patented wheel-end rotary union hardware with electronic technology.
Trailer tire pressure can be dynamically adjusted (increased or decreased) based on load weight.
Data feeds, alerts and reports are communicated directly from the vehicle to the fleet and the driver.
The reason that I love DROV Technologies is that with their AirBoxOne product, fleet owners realize a measurable return on their investment and gain significant operational, financial and safety benefits such as: Reduced cost-per-mile and lessened potential for roadside incidents; Reduced potential violations and costly downtime which could result in missing delivery requirements; and Extended life of your trailer assets.
Deploying DROV’s AirBoxOne on your fleet of trailers will provide you with real-time, actionable information.
You can check out DROV at www.DROVTechnologies.com
So that’s your weekly Friday 5, a quick wrap-up of the big deals in the automotive technology space over the past week.
If you’re an auto tech entrepreneur working on a solution that helps car dealerships, we want to hear from you. We are actively investing out of our new DealerFund.
If you’re a dealer who wants to invest in early-stage auto tech companies that benefit your business, let me know. We are still accepting new investors into the fund.
If you’re interested in joining our investment club to make direct investments into auto tech and mobility startups with small checks, let me know.
And don’t forget to check out my new book available on Amazon called “The Future of Automotive Retail.”
Thank you for tuning into CBT News for this week’s Friday 5, and we’ll see you next week!
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