Auto Repair Industry Embraces Modern Tech as Vehicle Lifespan Increases The average age of passenger cars on the road has increased to over 13 years, prompting car owners to invest more in repairs. However, 90% of auto repair shops still rely on outdated technology like spreadsheets and cumbersome invoicing tools. AutoLeap co-CEOs Steve Lau and Rameez Ansari attribute this resistance to change as the main reason shops have not upgraded their systems.
AutoLeap aims to modernize the auto repair industry by offering an enterprise SaaS solution that digitizes workflow processes such as customer quotes, invoices, and job estimates. Additionally, it includes a sales and marketing component for customer relationship management. Auto repair shops using AutoLeap’s software have reportedly experienced a 30% increase in revenue and a 50% reduction in administrative tasks within the first year.
As older shop owners pass their businesses on to younger, tech-savvy successors, auto repair technology is transitioning from a “nice to have” to a “must-have.” This shift in the industry has led to more startups addressing the problem, attracting investor interest. CarmaCare and Mecanizou are two such startups, having raised $4.5 million and $14.5 million in funding, respectively.
AutoLeap itself secured $30 million in Series B funding in March, led by Advance Venture Partners (AVP), with participation from existing investors Bain Capital Ventures, Threshold Ventures, and Maple VC. Since its $18 million Series A in late 2021, AutoLeap has grown its customer base nearly tenfold. The new capital will be used to continue hiring across all functions, invest in product development, and improve customer experience.
As AutoLeap moves beyond its startup phase, the company plans to take on a more significant role in thought leadership within the auto repair industry. Co-CEO Rameez Ansari aims to host more events like the recent virtual auto repair conference, Amplify, to drive the industry’s technological shift.