AI Voice Agents for Car Dealerships - Toma AI & a16z Funding

Toma's Unexpected Pivot to the Automotive Industry

Monik Pamecha, a co-founder of the AI voice technology company Toma, launched in early 2024, initially didn't foresee a summer dedicated to engaging with car dealerships across the country. While initially targeting banking and healthcare sectors, the company received compelling outreach from automotive retailers.

Initial Contact and Opportunity Recognition

“Dealerships contacted us directly, expressing they were overwhelmed by the sheer volume of incoming phone calls,” Pamecha recounted in a discussion with TechCrunch.

Recognizing a potential shift towards a less stringently regulated market compared to banking or healthcare, Pamecha and his co-founder, Anthony Krivonos, devised a test. They initiated calls to virtually every car dealership nationwide, conducting the outreach multiple times.

On-the-Ground Research and Immersion

The results revealed that only 45% of these calls were answered. This prompted the co-founders to embark on an immersive research journey. Similar to a contemporary adaptation of the film “Tommy Boy,” they traveled to a dozen dealerships in Oklahoma and Mississippi to gain firsthand insight into the operations of these businesses.

Their involvement extended beyond observation; they actively participated in the daily routines, with Pamecha noting his wife’s surprise at the grease stains on his clothing upon his return. This hands-on approach proved invaluable.

Building Relationships and Gaining Trust

This dedication fostered strong relationships with dealership personnel. The founders were welcomed into homes for meals – an occasionally amusing experience given Pamecha’s vegetarian dietary preferences – and even received invitations to tour the Corvette Museum. One dealership owner even extended an invitation to join a shooting range outing.

Investor Confidence and Validation

Seema Amble, a partner at a16z, who spearheaded the $17 million in funding secured by Toma, emphasized the founders’ dedication. She stated they were “essentially embedded within these dealerships, attending family events, and gaining a comprehensive understanding of their inner workings.”

“We prioritize investments in the next wave of vertical AI companies, and the most successful founders demonstrate a deep understanding of their customers’ needs through immersive experiences,” she explained to TechCrunch, adding with a playful tone, “No pun intended.”

Developing a Specialized AI Agent

The insights gleaned from this immersive experience enabled Pamecha and Krivonos to refine the Toma voice agent. This AI tool is now utilized by over 100 dealerships across the country, assisting with tasks such as scheduling service appointments, processing parts orders, and responding to sales inquiries.

Strategic Investment and Industry Support

In addition to a16z, Toma has attracted investment from Y Combinator (where the company originated in January 2024), the Scale Angels Fund, and Yossi Levi, a prominent figure in the automotive industry, also known as the Car Dealership Guy.

Addressing Dealership Challenges

Levi explained to TechCrunch that dealerships face challenges with call volume due to its unpredictable nature. “Demand fluctuates; sometimes it’s overwhelming, while other times it’s insufficient. Maintaining consistent staffing levels and providing thorough training for a uniform customer experience is a complex undertaking,” Levi stated. He believes AI “offers dealerships the opportunity to standardize processes and deliver a consistently enhanced customer experience.”

AI Training and Customization

Pamecha detailed that Toma’s onboarding process involves training the AI on a dealership’s existing customer call data for a period of one to two weeks, providing contextual understanding. While dealerships share common functions, variations exist in specific details. For instance, some dealerships may specialize in diesel engine service, and many implement unique sales and service promotions.

Continuous Improvement and Subscription Model

Following this initial training phase, the Toma AI begins handling calls, escalating to human employees when encountering unfamiliar situations. These escalated calls are analyzed to refine the AI model, improving its performance for that specific dealership. Toma operates on a subscription basis, with pricing tiered based on the breadth of dealership operations handled by the AI agents.

Growth and Future Outlook

Pamecha indicated that the Series A funding arrives at an opportune moment for Toma, as the startup recently hired its first dedicated sales representative. Prior to this, the company’s growth was largely driven by the direct efforts of Pamecha and Krivonos, mirroring their initial cross-country journey.

The Value of Immersive Understanding

Pamecha expressed that without this immersive experience, Toma might not have achieved its current success. “It was truly one of the most rewarding experiences of my life,” he said. “I believe we’ve forged genuine friendships, stemming from a shared understanding of their challenges. I think they recognize that we empathize with their struggles.”