Daimler invests in Carwow
Author: Marcus Schilling
Car purchase website acts as a broker for dealers
Daimler has invested a large sum in the car purchase website Carwow. With 28 million euros, Daimler led the latest financing of the start-up. Carwow intends to use the financial support to expand its business especially in the UK, Germany and Spain.
In addition to Daimler, other German car manufacturers also participated in the financing round. Users of the platform can select a vehicle online and are then forwarded to dealers in their neighborhood. Dealers indicate in advance on the platform which discounts they are willing to grant. These are then displayed to the users during the selection process.
Currently, the automotive industry is characterized by the fact that inhabitants of metropolises buy less cars and brand loyalty is constantly declining. Furthermore, conventional vehicles could be replaced in the future by self-propelled Robotaxis, which would reduce car sales and car manufacturers would earn money primarily by operating driving services.
Carwow Germany boss Philipp Sayler von Amende says: “We can see which competitive vehicles the customer has configured, which vehicles he has actually requested from the dealer, and what he has bought at which price in the end. On average, a user prefers four models from three brands.
Daimler manager and head of sales at Mercedes-Benz Cars Axel Harries joins Carwow’s board of directors. According to Sayler von Amende, the start-up wants to include new car manufacturers in further financing rounds. Carwow started in the UK in 2012, entered the German market in 2016 and the Spanish market in 2018.