Updated: May 12, 2020
Carzaam Automotive News Episode 4: Drive Motors - DiDi - Tencent
3 year old auto commerce startup Drive Motors has a new name and $5M in fresh capital from investors including Peter Thiel, Japanese dealer conglomerate IDOM and Ally Ventures.
The startup has simple proposition, providing the “buy button” for dealership websites in a native transaction layer within their existing online platform.
Along with the funding round, the company also changed its name to Modal, which founder Aaron Krane says better reflects its broader vision and business plan.
Starting off small and first landing local dealerships in California, Modal now services some of the largest dealer groups in the country with an increased feature set that includes real-time financing, digital documents and in-store point of sale.
China used car demand falls again
And finally today, we see that China’s vehicle demand is expected to decline for the second straight year this year, extending a historic slump as customers delay purchases amid trade tensions with the U.S.
Sales have fallen in the first five months of the year as dealers grapple with swollen inventories in provinces that have implemented strict emissions standards.
The rising popularity and availability of ride-sharing services has also reduced the need for individuals to buy vehicles. This was highlighted by Guangzhou Automotive who recently rolled out its car-hailing service, jointly developed with Tencent and Didi.
The only bright spot in the Chinese market to data has been electric vehicles. Total sales climbed 42% in the first five months to 464,000 units. This was on the back of a 62% gain last year.
Read more about the Coolest Automotive tech, trends and takeaways from CES2020 and 7 BIG Reasons Why You Should Buy a Used Car Instead of a New One...
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