RepairSmith offers online scheduling for automotive repair and service at the home or office.
RepairSmith
Since 1999 over a billion dollars has been invested in the automotive sales industry, but the after-sales market received less than $100 million, Joel Milne, CEO of RepairSmith tells me in a phone call. And yet anyone in the automotive industry will tell you that service and repair is where all the money is.
Daimler is stepping into this void. The parent company of Mercedes-Benz also has an investment arm and runs an incubator that explores new technologies. One of the manufacturer’s executives came up with the idea of mobile mechanics on wheels, and nurtured this start-up in its “Shark Tank.”
RepairSmith operated in beta mode in Los Angeles for several months before officially launching in July. It currently operates a fleet of 10 Mercedes-Benz minivans and Sprinters equipped with automotive diagnostics tools, common parts, and a mechanic that it employs to service vehicles at the owners house or business. And yes, although it’s funded by Daimler the company’s technicians will work on any make and model of vehicle, save antiques.
It’s also a platform for independent repair shops the company partnered with to work on the complex jobs that its mobile repair vehicles can’t. Frequently request services include brake pad replacements, oil changes, new battery and alternator installation, and the mobile units are also equipped with diagnostics tools to help owners of late model vehicles figure out what those error codes mean.
The advantage of providing service at the location of the driver’s convenience is an obvious draw for its consumers, which are currently only in San Francisco and Los Angeles at the moment. But they also appreciate knowing ahead of time what the work will cost them, says Milne. Pricing differs based on location, and although they aren’t the cheapest, they’re not a premium service either–they’re aiming to be priced competitive to the local market.
By the numbers, the aftersales market is a $200 billion industry with 50% gross profit margin, according to Milne. Certain vans in their markets are operating in the green, but on the whole the start-up isn’t yet profitable. But that’s not a concern right now–with financial backing by Daimler, the company can afford to play the long game.
“Our goal is to be a national player,” he says in a phone interview with Forbes.
Five new cities in the southwestern states are planned for 2019, and the career page for the start-up shows job openings for automotive technicians in Irvine, Mountain View, San Diego, San Jose, and Sacramento. More states are planned for 2020, but Milne couldn’t share details on which locations they’ll be targeting.
The company is growing as fast as it can add vans and hire technicians, and they’re running a very full calendar. Booking online may not be revolutionary, and it’s not exactly on-demand, but having a technician come to you is still a lot better than burning a morning bringing the car into the shop.
