Startup Companies Blog

Car Maintenance Startups: Worthy of Investment?

No matter how much car technology improves, they will always require maintenance. Therefore, it is safe to say that startups working in the vehicle maintenance sphere can expect a reliable demand. But what is it that car maintenance enterprises are doing to change the world, and how are they performing?

car maintenance startups

What is Car Maintenance 2.0?

A term shared by Gena Olson at Medium, Car Maintenance 2.0, is what we can refer to the changing world of vehicular repair. Referring to several movers and shakers in the sphere, Olson confirms that technology is changing how we drive and hitch rides in a big way. Why should maintenance and repair be any different?

However, car maintenance is yet to 'catch up' with emerging trends in driverless vehicles and EV's resurgence for whatever reasons.

Tracxn regularly updates its car maintenance startups checker to keep tabs on emerging names. At the time of writing, they calculate that around 470 enterprises are specializing in repair. Specifically, these are companies that are keen to take car repair to the next level.

However, this is a drop in the ocean compared to an existing maintenance company population of around 162,000. Therefore, they will be looking for any given chance to break through the competition.

The overall theme for many of these innovators is, of course, convenience. Some services specialize in bringing maintenance support to you via apps. Others may connect you directly to a mechanic or advisor so that you can receive the specific maintenance support you demand.

As car maintenance demands increase, it stands to reason that companies offering these services need to evolve with new technology.

The Big Startup in Mobile Car Maintenance Right Now?

Many of the more prominent names and successes in Car Maintenance 2.0 offer clearer links between drivers and their service centers. One brand worth watching, for example, is Wrench.

Wrench is an app service that launched in 2016 and continues to offer US motorists on-demand car care. Developing from a home base in Seattle, the app allows users to pick and choose specific maintenance requirements.

For example, in a similar way to shopping online through eCommerce, Wrench users can pick a general service or even an engine audit from a list of services. They can then arrange repairs ad hoc. The company is already worth more than $37 million, with interest being shown from Tenaya Capital, Alumni Ventures, and more.

The Future of Simple Car Maintenance

Statistics show that the market for automotive repair is growing annually. It's thought that it will reach highs of $810 billion, plus, by 2026. Therefore, now appears to be the time for innovators to get an edge.

Investors and third-parties, too, will find automotive startups through services such as Fundz. It's getting easier for VCs and angels to find disruptive enterprises in spheres such as auto repair. Therefore, it will not be surprising to see at-home car repair services rise to dominance by mid-decade.

 

SOURCES

https://www.globenewswire.com/news-release/2019/03/27/1774167/0/en/Automotive-Repair-Maintenance-Service-Market-Is-Estimated-To-Reach-USD-810-30-Billion-By-2026-Reports-And-Data.html

https://www.geekwire.com/2020/mobile-auto-repair-startup-wrench-thriving-amid-pandemic-especially-work-fleet-vehicles/

https://www.arkansasonline.com/news/2020/oct/18/lr-entrepreneur-in-high-gear-with-car-maintenance/

https://tracxn.com/d/trending-themes/Startups-in-Automobile-Repair

https://medium.com/swiss-startup-capital/car-maintenance-2-0-revolutionizing-the-auto-repair-experience-eb4c27abd3bc