Unlike renting an apartment or booking a taxi, buying a car online isn’t always easy to do.
While almost 94% of individuals globally research their car online, only 33% of these individuals are willing to buy their car on the internet. And it’s no wonder — there are quite a few things that can go wrong.
From acts of fraud and buying a stolen or bunk vehicle to vehicle transportation, the hassle of buying a car online just doesn’t seem worth it to many consumers.
But now, Shift Technologies, the online used car marketplace, is trying to change that.
The San Francisco-based company recently raised $50 million hopes of making buying and selling used cars as easy and accessible as ordering takeout.
According to Forbes, Shift Technologies’ premise is simple: using data and algorithms, Shift provides potential buyers with the lowest price possible. The site keeps the cars available online for 60 days maximum (most cars take 30 days to sell).
If the car isn’t sold in that period of time, Shift Technologies will cut their losses and seek alternatives such as auctions in order to properly service the customer.
Like other competitors such as Vroom and Beepi, Shift repossess the car before sale, and stores them in a warehouse to be shipped after sale. However, Shift sets itself apart from the competition by offering test drives, and it allows potential customers to do these test drives “on-demand.”
With the money raised, Shift also plans to open more locations across the country, making the transactions more widespread and convenient, as well as getting a leg up on their competitors.
“We’re trying to disrupt the Craigslist experience,” said George Arison, cofounder and CEO in an interview with Forbes.
“These purchases already happen, but we want to bring in trust and give you confidence when you’re buying.”
Will Shift Technologies shift the current consumer perception of online used car buying and selling? Only time will tell.
