YourMechanic Announces $24 Million in Funding to Accelerate Expansion of OnDemand Car Repair and Maintenance Services
With 400% annual revenue growth in 2015 and operations in 700 U.S. cities, YourMechanic will expand its services to the rest of the country and beyond
Mar 01, 2016, 07:30 ET
MOUNTAIN VIEW, Calif., March 1, 2016 /PRNewswire/ -- YourMechanic, the leading ondemand auto mechanic service that is changing the way consumers schedule and perform car maintenance, announced today that it has raised $24 million, which brings its total financing to $32 million. The funding was provided by SoftBank Capital, Lerer Hippeau Ventures, Data Point Capital, Andreessen Horowitz, SAIC, Verizon Ventures, American Family Insurance, PG Ventures, Promus Ventures, and Silicon Valley Bank. YourMechanic will use the capital infusion to make their highly rated service available nationwide and in Canada.
YourMechanic connects car owners with certified mechanics who make house calls. The company offers over 500 onsite services, including oil changes, brakes, belts, heating and A/C, manufacturer scheduled maintenance, diagnostics, and more. Consumers get an upfront price for services and book an appointment through the YourMechanic mobile app or website. The customers and mechanics rate each other after the service is done, and mechanics must maintain a 4star rating or higher to continue their work on the platform. YourMechanic provides consumers with access to mechanics at the top of their field, the convenience of having services completed at their home or office, and transparent pricing that is on average 30 percent less expensive than traditional shops and dealerships.
"I founded YourMechanic in 2012 to bring transparency and convenience to car owners at a fair price. Since then we have serviced tens of thousands of happy customers and equally happy cars, resulting in tripledigit annual growth," said cofounder and CEO Art Agrawal. "This commitment from leading investors is a reflection of our tremendous success to date and validation of our unique ondemand auto services brand that is redefining the way in which maintenance and repair services are delivered, discovered, and booked."
YourMechanic manages the entire car service process online, from service selection and quotes to booking and payments. They maintain service records and send maintenance reminders to customers through the mobile app. All YourMechanic technicians are certified, fully insured, and background checked, and each service is backed by YourMechanic's 12month, 12,000mile warranty and $1 million liability policy.
The company also delivers a unique value proposition to mechanics: two to three times the compensation of traditional brickandmortar repair shops, flexible schedules, and the opportunity to build direct relationships with the drivers whose cars they're entrusted to maintain. "We often hear from our customers, 'I've finally found my mechanic,'" says Art. "Just like finding a great doctor, having access to an expert mechanic gives you peace of mind. We're about delivering that peace of mind at a lower cost and without the hassle of spending the day at a shop or dealership."
With the financing, Joe Medved from Lerer Hippeau Ventures and Scott Savitz from Data Point Capital will be joining the Board. "By efficiently shifting the pointofservice to a client's home or office and using technology, YourMechanic captures substantial economic value historically tied up in infrastructure and human capital costs," said Medved. "This value is shared among marketplace participants and creates a model that can drive substantially higher profit margins than the status quo."
"Consumers want ondemand services and the ability to schedule and monitor auto repairs will play a key role in enhancing customer service and transforming the transportation sector," said Jeffrey Black, Director at Verizon Ventures. "YourMechanic's modern approach to auto service has been embraced by customers across the country who expect value, convenience, and transparency. We are thrilled to work with the YourMechanic team as they expand services to new markets."
About YourMechanic
YourMechanic was founded in 2012 with the goal to make car repair and maintenance affordable, convenient, and transparent. Dealing with car problems has historically been a timeconsuming and frustrating experience, and very expensive. Car owners often lack visibility into the price and quality of care services. At the same time, the mechanics who put in the hard work of fixing cars make very little money at repair shops (less than 20% of what consumers pay). By connecting car owners with certified mobile mechanics, YourMechanic puts both parties in the driver's seat. For more information on YourMechanic, visit www.yourmechanic.com.
SOURCE YourMechanic