 | |
| Formerly | Next Technologies (2015-2016) Drive Motors (2016-2019) |
|---|---|
| Type | Private |
| Industry | E-commerce, Automotive industry |
| Founded | 2015 |
| Headquarters | , |
| Website | modalup |
Modal, formerly known as Next Technology Inc., was an American-based company in San Francisco, that sold software for a dealership's website, allowing car shoppers to purchase new and used cars online.
In 2016, the company, then known as Next Technologies, entered the seed accelerator, Y Combinator.
Modal was founded in 2015 out of Khosla Ventures. [1] The idea came because there were very few solutions allowing users to buy new cars online but also allowing auto dealers to sell them. [2]
After spending a number of months looking for a car himself after he sold his first business to Yahoo! in 2013, the founder realized that the process was incredibly time-consuming and could be streamlined. [3] In an interview with TechCrunch he stated, "it became shockingly clear that ecommerce had not reached new cars." When speaking about the competition, they suggested that the vast majority of large car sales websites were effectively online magazines, listing cars that you could purchase in person. [4]
After the idea of the company was established, Next Technologies then entered seed accelerator Y Combinator in 2016. [1] This was following rapid growth in Modal's revenue. It was stated that it took only 10 months for their turnover to rise to $1 million in annual recurring revenue following their official launch. [5] They also attended the AutoVentures Conference in 2016, where Modal was listed as a contestant for the main award and pitched their product as the future of the auto industry. Drive Motors was announced the winner following Modal's presentation. [6] In June 2019, the company rebranded as Modal Commerce. [7]
Modal signed up their first enterprise client to date in 2016, with Asbury Automotive Group agreeing to test the software at a handful of their dealerships. [8] Later that year, Asbury announced they were extending the software to more of their dealerships. [9] Modal consequently added clients including Honda, Nissan, Porsche, Lithia, Group One, and others.
Dealers are able to implement the software and sell cars directly from the dealership website. [10]
Magna International Inc. is a Canadian parts manufacturer for automakers. It is one of the largest companies in Canada and was recognized on the 2020 Forbes Global 2000. The company is the largest automobile parts manufacturer in North America by sales of original equipment parts, it has ranked consistently in the Fortune Global 500 list for 20 years in a row since 2001. It produces automotive systems, assemblies, modules, and components, which are supplied to General Motors, Ford and Stellantis, as well as BMW, Mercedes, Volkswagen, Toyota, Tesla, and Tata Motors, among others.
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DriveTime Automotive Group Inc. is an American used car retailer and finance company. It is based in Tempe, Arizona, and sells and finances cars to customers around the nation. The company was formerly known as Ugly Duckling and was renamed DriveTime in 2002. It also spun off Carvana and GO Financial, SilverRock Group Inc, and Bridgecrest Acceptance Corporation. As of 2018, DriveTime had approximately 145 locations in the U.S. and 3,800 employees.
Mojo Motors, Inc. was an American automotive classified website for preowned automobiles.
Carmudi is an online car classifieds site that focuses on emerging markets. The portal was launched in 2013 and is owned by Rocket Internet.
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The electric car company Tesla, Inc. has faced dealership disputes in several U.S. states as a result of local laws. In the United States, direct manufacturer auto sales are prohibited in many states by franchise laws requiring that new cars be sold only by independent dealers. Tesla maintains that, to properly explain to their customers the advantages their cars have over "traditional" vehicles with an internal combustion engine, they cannot rely on third-party dealerships to handle their sales.
Vehicle subscription is a service where a customer pays a recurring fee for the right to use one or more automotive vehicles. Some vehicle subscriptions offer insurance and maintenance as part of the subscription fee; other subscriptions allow the subscriber to switch between different vehicles during their subscription period. Industry commentators consider vehicle subscription to be an alternative to owning or leasing a vehicle.
CarWoo was an online new car shopping pricing and information website that allowed consumers to buy cars by negotiating with car dealers in a semi-anonymous online reverse auction. CarWoo, whose logo also appears as CarWoo!, was a competitor to TrueCar, which was a similar but negotiation-free car buying platform.
Sony Honda Mobility Inc. is a Japanese joint venture automotive company established by Sony Group Corporation and Honda Motor Company in 2022 to produce battery electric vehicles. The company will market its vehicles under the Afeela brand.
