Disrupting the auto industry
The auto industry is 15% of the global retail economy. It is massive, fragmented and rife with problems. Data shows that 81% of people do not enjoy the car buying process, and only 8% considered car salespeople as trustworthy. However, the digital economy is transforming the car buying process. Already, 97% of the total customers purchasing research online beforehand, and 72% of these would buy online if they could.
The auto industry has changed dramatically in terms of manufacturing process improvements, huge investment in R&D and now rapid growth in onboard technology, from safety features and driving aids to full autonomy. The speed of these innovations has only been limited by the speed of regulation to ensure that the developments provide the improvements that are promised. Supply chains have developed beyond boundaries of geography and political, with the outsourcing of production so sophisticated that companies are able to run ‘Just in Time‘ production models, with parts traveling through up to four different countries. To keep up with the increased production levels, there have been whole new financial models created to support the increased output. This has to lead to huge stoke levels flooding the used car retail market. This, in turn, has commoditized the car market, making it a low-profit-margin, high turnover business. The actual sales cycle, however, has not changed. There are still costly and inefficient middlemen involved, charging fees, commission, and other costs, while providing little in the way of adding value. This again reduces the profitability of the dealer and reduces customer satisfaction, with a sell fast, sell cheap model.
Now, autoXchange completely disrupts this model. It removes the need for middlemen, enabling buyer and seller to interact with each other directly on the blockchain, without the additional costs and inefficiencies that currently exist.
Blockchain solutions are all focused on removing trust from a process. By using a distributed ledger based solution, autoXchange are able to introduce smart contracts and other functionality with do not require banks, lawyers or other third parties to hold info, check financial access or secure contracts. All of the information needed to support a successful transaction, car ownership, insurance, finance, accident history, are added to the specific chain for the car. This enables transparency and security, without the need to ‘trust’ anyone.
The system works towards providing the end customer with the very best experience. The interface is designed so that all information is available to the buyer in a clear and effective layout. The solution has been created to ensure that the user has the very best experience, and the system is fast, secure and effective. Buyers will be able to access a huge amount of choice without the fear of fraud, inaccuracy, duplication, and illegal practices. The autoXchange marketplace will allow people to manage offers, make payment (in fiat or crypto), and source finance in a convenient and efficient manner.
Richard Brown, Founder, and CEO of autoXchange, says that “At autoXchange we believe in building an open blockchain framework which can be used as a shared industry resource where the data and tools are made accessible to any third party without cost.”
Cars and blockchain have gained a reputation for being male-focused. Richard believes in building an inclusive and diverse workforce. Prior to setting up autoXchange, Richard worked for a startup in Berlin and witnessed first-hand how a lack of diversity within the workforce led to a stale work environment lacking inspiration and creativity.
At autoXchange, the belief is that diversity leads to better decision making. The company is actively doing outreach by contacting cultural organizations, local communities, and providing mentoring programs for school and graduating university students. The job advertisements are specifically designed to be gender neutral to avoid the male bias that often creeps in unconsciously. The company is encouraging flexible working and job-sharing specifically to support parents who require flexibility from their work environment and are actively developing strategies to encourage mothers to work for them, with a firm belief that women, particularly after motherhood, are a hugely undervalued resource. The company is also addressing the gender pay gap by ensuring that salary ranges are narrow and based on role.
By having a set of very clear core values at the center of their business, disruptors such as autoXchange are ensuring that they stay true to their vision and mission as a company.