RepairSmith Raises $42M Series B for Mobile Auto Repair

RepairSmith: Mobile Auto Repair and Expansion Plans

Experiencing car trouble can be a frustrating ordeal, akin to dealing with a painful toothache. It’s an issue that demands attention and often involves unfamiliar work being done on your vehicle. RepairSmith, established in 2019, aims to alleviate this stress by providing a convenient mobile auto repair service, dispatching mechanics directly to customers’ locations.

Growth and Funding

Currently operating in seven states, the company has secured $42 million in new funding. This investment will be utilized to broaden its reach, with the goal of serving every major metropolitan area within the United States by the close of 2022.

According to CEO Joel Milne, RepairSmith’s core business model combines e-commerce principles with logistical expertise. The company intends to revolutionize what is arguably the largest retail sector that remains largely untouched by technological advancements.

Disrupting the Auto Repair Industry

RepairSmith differentiates itself by enabling customers to schedule appointments online and receive vehicle inspections or repairs at their homes. This approach represents a significant departure from the traditional auto repair experience.

The company originated within Mercedes-Benz’ incubator program, and its initial funding rounds were provided exclusively by the automaker. Having established a strong presence in several metropolitan areas and demonstrating a viable business model, RepairSmith has broadened its investor base to include TI Capital, Porsche Ventures, and Spring Mountain Capital, alongside Mercedes-Benz.

A Multibrand Industry Solution

“From the outset, our intention was to create a solution applicable across the entire industry, not solely for Mercedes-Benz,” Milne explained in an interview with TechCrunch. “While Mercedes provided initial support, the vision always extended beyond a single brand.”

Service Availability and Completion Rates

Depending on the location, customers can typically expect a repair technician to arrive within one to two days. Milne stated that approximately 90% of appointments are successfully completed on-site.

For the remaining 10% of cases, customers have the option of transporting their vehicle to, or arranging for a tow to, a network of auto body shops that collaborate with RepairSmith.

Inspection and Quote Process

Customers may either know the specific issue with their vehicle beforehand or opt for an inspection visit. Following an inspection, RepairSmith provides a detailed quote for the necessary services.

Expanding Beyond the Consumer Market

Initially focused on individual consumers, RepairSmith has expanded its services to include fleet management, rental car agencies, and dealerships. Currently, over a quarter of the company’s revenue is generated from business-to-business (B2B) clients.

“Both the consumer and B2B markets present substantial and appealing opportunities,” Milne noted. “Our initial focus was on consumers, but this recent funding round will enable us to aggressively expand our B2B service offerings.”

Employee-Based Technician Model

RepairSmith employs all of its technicians as full-time employees, rather than utilizing independent contractors. This decision was driven by a desire to attract and retain highly skilled professionals.

“We determined that offering standard employment terms was essential to compete effectively for the caliber of technicians we sought,” Milne said. “The labor market for auto repair technicians consists primarily of employees, and we needed to align with that standard.” He also highlighted the avoidance of potential legal complexities associated with contractor versus employee classifications.

Future Goals and Potential Funding

The company has ambitious goals, including entering all major metropolitan markets by the end of the following year. Achieving this will require not only expanding the technician workforce but also continuously refining the company’s software and logistics platform, which was developed internally.

Milne refrained from definitively stating whether additional capital might be required to reach these objectives. “Should market conditions prove favorable, we will consider further investment to accelerate growth, potentially including international expansion or broadening our service portfolio. However, this current funding round provides a substantial foundation for progress, contingent upon our desired pace of expansion.”