While disruptive business models have succeeded in other industries, like online giants Amazon and Netflix, state-by-state franchise laws now complicate matters as they continue to impact innovation in sales of new car brands like Tesla.
In the last three years, evolving used car sales models in the U.S. grew rapidly and received increased attention and funding, accruing more than $2 billion for Beepi (merged into Fair), Carvana (backed by DriveTime), and Vroom. U.S. online new car sales are expected to cross over to at least 10% of yearly sales by as early as late 2019.
Additional online car sale disruptors include Carlypso, Car Saver (with an upcoming pilot in select Walmart stores), MakeMyDeal (a Cox Automotive company), Roadster, and TRUECar. Well-known market players include AutoNation (America's largest auto retailer), Costco, and Edmunds.
"Emerging digital business models, some that have yet to be designed or deployed, will disrupt the entire auto industry," concludes Beardslee. "Profits, personnel, and control within and outside the traditional automotive industry will permanently change. However, significant data that dealerships already possess could be mined for additional profit pools, as well as the generation of new preferences and experiences, such as virtual showroom experiences."
These findings are from ABI Research's The Future of Dealerships in the Digital Automotive Era (https://www.abiresearch.com/market-research/product/1026409-the-future-of-dealerships-in-the-digital-a/) report.
About ABI Research
ABI Research stands at the forefront of technology market research, providing business leaders with comprehensive research and consulting services to help them implement informed, transformative technology decisions. Founded more than 25 years ago, the company's global team of senior and long-tenured analysts delivers deep market data forecasts, analyses, and teardown services. ABI Research is an industry pioneer, proactively uncovering ground-breaking business cycles and publishing research 18 to 36 months in advance of other organizations. For more information, visit www.abiresearch.com.
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SOURCE ABI Research