Welcome back to the latest episode of The Future of Automotive on CBT News, where we put recent automotive and mobility news into the context of the broader themes impacting the industry.
I’m Steve Greenfield from Automotive Ventures, and I’m glad that you could join us.
I’m excited to share Automotive Ventures’ latest investment.
We just made an investment into Chaiz, the first price comparison site to research, compare and purchase vehicle protection products 100% online.
We were honored to participate in an oversubscribed $3.7M seed round.
Chaiz aggregates the offerings of the best third-party service contract (breakdown protection) providers in the industry and delivers transparency in pricing and coverage. Consumers can compare products online and save.
The Chaiz technology is also fully embeddable/integratable into any 3rd party site/app.
The company is on a mission to change not just the way people buy protection for their cars, but to change an industry. For too long, people who rely on their car and simply want peace of mind driving it were pushed into overpriced and ill-fitting protection products by aggressive call centers.
Chaiz enables everyone to find vehicle protection products that fits their needs and budget, at their own pace. Chaiz will stay independent and will ensure that providers are vetted and claim processes are handled professionally. The company believes its role has to be more than just a marketplace, but to enable all parties involved to evolve into a digital-first experience from A-to-Z with the customer truly at the heart of the experience.
The company is dedicated to bringing transparency and choice to the extended car warranty market, ensuring that consumers are protected from unexpected repair bills without the intrusive practices common in the industry.
Consumers can compare plans in seconds from multiple providers, get protection for their vehicle with just a few clicks, and save on average $1700 versus buying from a call center.
Customers also get: a 30-day money-back guarantee if they change their mind, the ability to cancel their plan at any time, and a dedicated team ready to assist consumers with their purchase or answer any questions.
With the average age of vehicles on U.S. roads reaching a record 12.6 years, and the most common check engine light repair costing over $1,300, the need for high-quality, affordable, and reliable extended car warranties has never been greater. Chaiz empowers consumers to make informed decisions, potentially saving them significant amounts on repair costs.
There are 70 million vehicle breakdowns each year and ~80% of cars on the road today have no breakdown protection. A transmission repair could cost you up to $5,000. All plans on Chaiz come with deductibles of only $100.
At the same time, car repair costs have skyrocketed, with some estimates citing 30-50% higher bills than just two years ago. And, 60% of Americans are unable to afford a $1k car repair bill.
Chaiz is poised to revolutionize the $40 billion vehicle service contract industry, which has been long plagued by large call center players that have poor reputations and provide challenging customer experiences.
Unlike traditional providers, Chaiz allows users to get quotes in minutes without submitting a phone number or email address, ensuring privacy and a hassle-free experience. This user-centric approach addresses a critical pain point in the industry, offering transparency and choice to consumers.
By leveraging an online approach, Chaiz eliminates the middlemen typically involved in purchasing warranties through call centers, saving customers 40%.
We’re thrilled to be part of Chaiz’s journey and are confident that our investment and contribution to the company will not only yield significant returns but also contribute to the company’s emergence as the leader in the broader mobility industry. We look forward to collaborating closely with the Chaiz team and playing a proactive role along their path to success.
If you’d like to learn more about Chaiz, you can check them out at www.Chaiz.com.
So, with that, let’s transition to Our Companies to Watch.
Every week we highlight interesting companies in the automotive technology space to keep an eye on. If you read my weekly Intel Report, we showcase a company to watch, and take the opportunity here on this segment each week to share that company with you.
Today, our new company to watch is Zappr.AI.
Zappr allows dealers to provide their customers with conversational AI tools on their websites.
Dealers can engage, support, and convert consumers with Zappr.AI’s intelligent chatbots — with no coding required.
Zappr.AI’s advanced chatbots integrate effortlessly with your existing platforms, driving conversions and streamlining support while cutting down on human resource costs.
Zappr.AI’s chatbots understand and process a variety of documents, from PDFs to images, ensuring your customers get accurate information instantly.
Empower your business with a chatbot that not only understands various document formats but also excels in booking appointments and nurturing leads.
If you’d like to learn more about Zappr.AI you can check them out at www.Zappr.AI
So that’s it for this week’s Future of Automotive segment.
If you’re an AutoTech entrepreneur working on a solution that helps car dealerships, we want to hear from you. We are actively investing out of our DealerFund.
If you’re interested in joining our Investment Club to make direct investments into AutoTech and Mobility startups, please join. There is no obligation to start seeing our deal flow, and we continue to have attractive investment deals available to our members.
Don’t forget to check out my book, The Future of Automotive Retail, which is available on Amazon.com. And keep an eye out for my new book, “The Future of Mobility”, which is almost done, and will be out soon.
Thanks (as always) for your ongoing support and for tuning into CBT News for this week’s Future of Automotive segment. We’ll see you next week!
