Carwow

Carwow

Carwow

UK based online car retail company

Carwow is an online marketplace for buying and selling cars. It uses the reverse marketplace model to remove the need for customers to negotiate with dealers when buying or selling their cars. When buying a new car, users choose the car they want, along with the various specifications and features, and then receive offers directly from dealers.[2] When selling a car, users upload some basic details about their car (such as the registration number, mileage and some photos), after which different car dealers are invited to bid to buy the car directly from them.[3] It also provides information to prospective purchasers and gives feedback on rogue dealers. The company has a YouTube page, run by motor journalist and Carwow's Chief Content Officer Mat Watson, where different cars are reviewed.[4] [5]

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The company has partnered with the RAC as part of RAC Cars' ‘search, buy, sell’ website.[6]

Carwow was co-founded by James Hind, Alexandra Margolis, and David Santoro and launched in May 2013.[7][8] When operating Carbuzz, James Hind came across the concept from a company that used the reverse tendering concept called My Best Deal. My Best Deal was the concept of David Paterson, formerly in the motor industry. David Paterson operated at a management level within the motor industry, providing finance and insurance services to clients. Carwow’s investors include Balderton Capital, Episode 1 Ventures, Samos Investments and Accel Partners.[9] The company had sold over 20,000 cars valued at £550m by January 2016.[10]

History

The company was originally launched in 2010 as a 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.[11]

In May 2013, it was re-launched as a car-buying platform. The company then raised £1.3m in venture capital finance from Balderton Capital, Episode 1 Ventures and Samos Investments, and several angel investors, including Alex Chesterman and Simon Murdoch, in February 2014 to fund growth.[12]

In 2014, its investors provided a further £4.6m of capital so the company could 'expand the team further, roll out above-the-line advertising campaigns and start exploring new markets'.[13]

In August 2015, following a complaint from a competitor, the Advertising Standards Authority found that the competitor "had been providing the same service since 2003", and therefore, the ASA "told Carwow not to claim that they were the first or only company to offer the advertised service."[14]

In January 2016, Carwow raised a further £12.5m in a Series B funding round led by Accel Partners.[15]

A £6m TV advertising campaign for Carwow was launched in December 2015, voiced by actor Michael Gambon.[16]

In August 2019, Carwow announced a £25 million strategic funding round led by German car manufacturer Daimler, the parent company of the Mercedes-Benz brand. Daimler executive Axel Harries will also sit on the Carwow board of directors.[17]

In June 2021, Carwow acquired Wizzle, a consumer-to-business car-buying platform founded by entrepreneur Sebastien Duval. Wizzle was rebranded Sell Your Car, allowing Carwow to grow the business significantly by entering the used car market.

In 2022, Volvo Cars acquired a minority stake in the company.[18]

In November 2022, Carwow cut nearly a fifth of its total staff due to economic concerns. Around 70 staff members were released across the UK, Spain and Germany.[19]

As of July 12, 2023, Carwow has multiple YouTube channels in various languages, presented by Mat Watson (or Daniel Hohmeyer for the German channel), with a combined total of 8.29 million subscribers and over 3.28 billion views on the English main channel.[20]

In 2022, ITV invested in a partnership with Carwow in return for advertising inventory across ITV’s channels and the ITV Hub. ITV acquired a minority stake in Carwow, valued at £2.5 million in return for advertising inventory, as part of a media-for-equity scheme, with an option to invest a further £2.5 million.[21][22][23]

In 2024, Carwow acquired Autovia, the publisher of Evo and Auto Express.[24]

References

  1. [1]
    "About Carwow". YouTube.
  2. [2]
    "Can you save money buying a new car online through carwow?". BT.com. Retrieved 2016-02-18.
  3. [3]
    "Carwow raises $55m to invest in Sell Your Car service". 6 December 2021.
  4. [4]
    "Zoopla for cars: property site bosses back start-up carwow". Telegraph.co.uk. Retrieved 2016-02-18.
  5. [5]
    "Carwow YouTube subscribers leap to 2.7million". AMOnline. Retrieved 2019-04-25.
  6. [6]
    "Carwow and RAC partner to offer innovative new car-buying experience - Car Dealer Magazine". Car Dealer Magazine. 3 June 2015. Retrieved 2016-02-18.
  7. [7]
    Beauhurst (2022-03-10). "50 Female Entrepreneurs To Watch | 2022". Beauhurst. Retrieved 2023-07-10.
  8. [8]
    Team, WATC Content (2016-12-13). "Inspirational Woman: Alex Margolis | Founder, www.carwow.co.uk". WeAreTheCity - Supporting Women in Business. Retrieved 2023-07-10.
  9. [9]
    O'Hear, Steve. "Car Buying Platform Carwow Raises £12.5M Series B Led by Accel". TechCrunch. Retrieved 2016-02-18.
  10. [10]
    "carwow celebrates one million users and £550m worth of cars sold - Startups 100 by Startups.co.uk: Start up a successful business". startups.co.uk. 26 January 2016. Retrieved 2016-02-18.
  11. [11]
    Love, Martin (2010-11-27). "Car review: Porsche Cayenne S Hybrid". The Guardian. ISSN 0261-3077. Retrieved 2016-02-18.
  12. [12]
    O'Hear, Steve. "Balderton Capital Leads £1.3M Seed In UK Car Buying Platform Carwow". TechCrunch. Retrieved 2016-02-18.
  13. [13]
    O'Hear, Steve. "Car Buying Platform Carwow Secures £4.6M Series A To Step On The Gas". TechCrunch. Retrieved 2016-02-18.
  14. [14]
    "ASA Ruling on Digital Blurb Ltd t/a Carwow". Advertising Standards Authority. 25 November 2015. Retrieved 29 November 2019.
  15. [15]
    "London startup Carwow has raised £12.5 million from the investors behind Dropbox and Spotify". Business Insider. Retrieved 2016-02-18.
  16. [16]
    "Michael Gambon to become the voice of Carwow". www.am-online.com. Retrieved 2016-02-18.
  17. [17]
    "Daimler leads £25 million strategic financing round for London-based car marketplace Carwow".
  18. [18]
    "Volvo takes stake in Carwow to help boost digital sales". Financial Times. 26 April 2022.
  19. [19]
    "Online car sales platform Carwow sheds a fifth of staff". Financial Times. 2022-11-25. Retrieved 2023-02-06.
  20. [20]
    "carwow's YouTube Stats". Socialblade. 19 May 2023. Retrieved 19 May 2023.
  21. [21]
    "ITV announces investment in Carwow". ITV Media. Retrieved 2023-07-10.
  22. [22]
    "ITV and Channel 4 drive £17.2m Carwow investment round". www.am-online.com. Retrieved 2023-07-10.
  23. [23]
    "ITV invests £2.5m stake in Carwow as part of media-for-equity scheme". www.campaignlive.co.uk. Retrieved 2023-07-10.
  24. [24]
    Kirwan, John (14 February 2024). "Carwow buys Autovia print and digital business for undisclosed sum". Motor Trader. Retrieved 8 June 2024.
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