When describing why his startup mobile vehicle repair company is growing, RepairSmith co-founder and CEO Joel Milne doesn’t mince words.
“I like to use the analogy you don’t bring your toilet to the plumber,” Milne said in an interview with Forbes.com.
It’s a testament to how fast demand home and on-site delivery of products and services have grown out of the Covid-19 pandemic as consumers avoided visiting places of business such as stores, restaurants and auto dealerships.
Already in 650 markets in seven states in the U.S. the two-year old company just landed $42 million in Series B funding from a group of investors that includes TI Capital, Mercedes-Benz, Porsche Ventures and Spring Mountain Capital.
Indeed, RepairSmith was the product of a Mercedes-Benz incubator session as it sought to find an innovative way to service its customers’ vehicles.
But Milne, who was hired to launch and run the new company, said Mercedes quickly saw opportunity in looking at a wider market.
Joel Milne, co-founder and CEO mobile vehicle repair company RepairSmith.
RepairSmith
“They realized this needed to be a multi-brand company not a Mercedes company to be successful,” said Milne. “The luxury OEMs are figuring out the right strategy how to implement competitive service offerings. That was the genesis. How do we evolve our service? Let’s invest as an industry solution rather than as Mercedes.”
The fresh cash infusion builds on an original Series A investment by Mercedes parent company Daimler as seed money to get the company started. It will be used to power a rapid RepairSmith expansion to all major U.S. metropolitan areas by the end of next year , according to Milne.
“The team at RepairSmith is taking a long-view of the changing customer expectations and technology requirements in the car repair industry and designing solutions to improve the customer experience,” said Andreas Joerg, Director of Service & Parts Business and Warranty & Goodwill Mercedes-Benz Cars in a statement.
Confidence in RepairSmith was echoed by Ziad Ghandour, founder of TI Capital who said in a statement, “We believe there is a team that is bringing mobile service and repair into the digital age, using a robust technology platform backed by world-renowned automotive partners. “RepairSmith is ideally positioned to transform the marketplace.”
The company also announced Ghandour and John L. Steffens of Spring Mountain Capital were appointed to its board of directors. They are joining Joerg and Thomas Vogel of Mercedes-Benz AG.
Similar to other mobile vehicle repair services, motorists simply make their requests on the company’s website, submitting some basic information. Milne says RepairSmith’s differentiator is its technicians are employees, not contractors, most of whom have at least 10 years of experience and hold ASE certification through the National Institute for Automotive Service Excellence. The company provides technicians with a specially-equipped van and tools. It’s all about quality control, he said.
RepairSmith technician outside one of the company’s specially-equipped vehicle service vans.
RepairSmith
The company doesn’t currently offer subscriptions but that’s part of software development included in its expansion plan, according to Milne.
Also part of its long-range goal is servicing electric vehicles. Since much of its business is related to used vehicles, there hasn’t been much demand or opportunity to handle battery-powered cars or trucks. But Milne says the company is already working on jumping into that segment.
“We are working with a number of EV manufacturers releasing cars that don’t have dealerships who will need a service partner from day one,” said Milne. “So we will certainly be at the top of the EV curve with this new generation coming up and will work with traditional OEMs as well.”
With its rapid expansion plans and business model focused on quality and premium image, Milne says RepairSmith’s mission is simple.
“We’re trying to disrupt the auto industry through e-commerce and last mile logistics.”
TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.
The S&P/TSX composite index was up 171.41 points at 23,298.39.
In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.
The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.
The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.
This report by The Canadian Press was first published Aug. 29, 2024.
The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.
The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.
Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.
The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.
Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.
Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.
Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.
Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.
The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.
