Type of business Private Area served UK Current status Active | Headquarters London, United Kingdom Industry Internet Founded 2013 | |
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Founders Alexandra Margolis, David Santoro, James Hind Profiles | ||
Carwow, stylised as carwow, is a platform for buying new cars from franchise dealers. It uses the reverse marketplace model to remove the need for buyers to negotiate with car sellers - users choose the car they would like to buy, along with the various specifications and features, then receive offers direct from dealers. It also provides information to prospective purchasers and gives feedback on rogue dealers.
Contents
The site is free to use and reportedly provides an average saving of £3,600 for the consumer. Dealers pay carwow to sell cars via the platform. The company claims to be completely unique in Europe and plans to expand into the continent into commercial vehicles, used cars and vans. The company has partnered with the RAC as part of RAC Cars' ‘search, buy, sell’ website.
carwow was founded by James Hind and launched in May 2013. The company's investors include venture firms Balderton Capital, Episode 1 Ventures, Samos Investments and Accel Partners. The company had sold over 20,000 cars valued at £550m by January 2016.
How it works
Users choose the car they would like to buy, specifying the make and model/features, then receive offers directly from dealers. They can then compare offers by price, location of dealer, reviews of the dealer and what's actually in stock. It's then up to the buyer to decide whether to contact the dealer based on their offer. They can make contact either anonymously via the carwow platform or by giving them a call.
History
The company originally launched in 2010 as car research site carbuzz. It offered aggregated expert reviews, user reviews, statistics, videos and images to help consumers looking to purchase a new car find the best vehicle for their taste, budget and requirements.
The team realised that consumers were missing a quick and easy way to compare dealers' prices on new cars, instead having to spend hours travelling round and negotiating with multiple dealers. In May 2013 it re-launched as a car buying platform. The company then raised £1.3m venture capital finance from Balderton Capital, Episode 1 Ventures and Samos Investments, as well as a number of angel investors including Alex Chesterman and Simon Murdoch, in February 2014 to fund growth.
Its investors provided a further £4.6m of capital in so the company could 'expand the team further, roll out above-the-line advertising campaigns and start exploring new markets'.
In January 2016, carwow raised a further £12.5m in a Series B funding round led by Accel Partners, backers of Dropbox and Spotify.
A £6m TV advertising campaign for carwow was launched in December 2015, voiced by actor Michael Gambon.
As of January 2016, carwow has one million users.