Motorway: The British Tech Company Revolutionizing the Car Resale Market
The Rise of Motorway: How a British Tech Company is Revolutionizing the Car Resale Market
In the midst of the chaos brought on by the Covid-19 pandemic, one industry unexpectedly thrived – the car resale market. With a shortage of new vehicles driving up the value of used cars, companies like British tech company Motorway saw a rapid rise in success.
Founded in 2016, Motorway has quickly grown to a team of about 500 people and sells around 1,000 cars a day. Unlike traditional car resale companies, Motorway operates as a marketplace, connecting buyers and sellers through an online platform. This unique business model has allowed them to scale rapidly and efficiently, handling about five per cent of all used car sales in the UK.
The success of Motorway comes at a time when other companies in the industry, like Cazoo, have faced challenges. While Cazoo amassed an $8 billion valuation in just three years, it ultimately collapsed into administration in May. Motorway’s co-founder and CEO, Tom Leathes, attributes his company’s success to a fundamentally different approach to the business.
Motorway aims to become the best place to sell a car in the UK, focusing on growing their market share and servicing as many consumers and dealers as possible. Despite a current slowdown in the used car market, the industry remains huge, with the UK market alone worth £100 billion and 8 million cars sold every year.
Motorway’s efficient market matching process ensures that sellers get the best value for their vehicles, typically netting them over £1,000 more than they would through part exchanges or trade-ins. By running instant online auctions for vehicles, Motorway connects sellers with the car dealer willing to pay the most for their specific car.
Looking towards the future, Leathes envisions Motorway becoming a global success, but emphasizes the importance of getting the fundamentals right before expanding internationally. As the company continues to scale, attracting top talent remains a priority, with Leathes advocating for better employee incentives and a more open country for talent to thrive.
In a market where innovation and efficiency are key, Motorway is leading the way in revolutionizing the car resale industry. With a strong foundation and a focus on customer satisfaction, this British tech company is poised for even greater success in the years to come.