AutoWeb Inc. (NASDAQ: AUTO) has purchased san Antonio, Texas-based CarZeus’ assets. CarZeus is a used car acquisition platform that buys cars from customers and resells them via wholesale channels.
AutoWeb acquires CaZeus
Following the acquisition, Autoweb plans to extend the used car acquisition platform beyond CarZeus’ san Antonia market by leveraging its extensive traffic acquisition capacity and the in-depth experience of the management team.
Autoweb CEO Jared Rowe said, “As a matchmaker, AutoWeb helps guide consumers through the large, complex, and multi-choice transaction of purchasing a vehicle. Providing our in-market audience with this alternative to dispose of their current vehicles is a natural product line extension. CarZeus offers an alternative disposal experience for consumers seeking to sell their cars. We believe that AutoWeb’s unique ability to efficiently identify in-market car buyers is a key differentiator that will allow us to match more of those consumers to the vehicle disposal experience they prefer.”
The company will be better positioned to compete in the highly fragmented and huge consumer used vehicles disposal industry due to this acquisition. According to industry forecasts, the market will grow to around 25 million vehicles per year, with a total value of around $230 billion. The acquisition also supports its continued investment strategy, including UsedCars.com and Car.com, to create a significantly meaningful customer experience.
Acquisition to help Autoweb enhance used cars
The capability of the company forms a platform suited to enhance the acquisition of used vehicles. The company anticipates that its efficient acquisition, automotive brands portfolio, and data sets will create a proprietary market position benefiting customers.
Rowe added, “Our audience is already cross-shopping new and used vehicles online, most often with vehicle disposal as a component of their ultimate transaction or set of transactions. We plan to adopt an omni-channel engagement model that incorporates retail-ready functionality and services, like vehicle disposal, to deliver improved value to both clients and consumers.”
