Cape Town based venture capital firm Silvertree Capital, the company behind pricecheck.co.za and cybercellar.co.za, has thrown its weight behind a new tech venture Carzar.co.za, aimed at driving second hand vehicle deals online.
Carzar.co.za will primarily focus on the pre-owned vehicle market and those behind the new venture, co-managing director Michael Muller and Brazilian engineer, Fernando Pinheiro, are hoping to capitalise on changing trends in the vehicle transport market.
The intention is to leverage the change in industry brought about by the internet, specifically in terms of the ease of doing business and improving access to second hand vehicles.
The startup factors in "stats-based pricing with national data and clever algorithms (to) offer consumers a fair, safe and convenient way to offload their vehicles to CarZar with same-day" payment, according to Muller and Pinheiro.
Carzar.co.za offers an online-only model, a 30 minute sales service and data-based pricing. Its value proposition is structured around reduced costs and pricing, supported by low running costs and a lean setup, with no middlemen.
"In South Africa, the taxi, hospitality, media, property and electronics industry have all been turned upside down by online entrants. Now it is the turn of cars," said Muller.
He added that "the way we use cars is changing, fundamentally and rapidly" and points to Uber, the ride sharing application that is taking root in South Africa.
"The price is decided on a data-based algorithm and if the quote is satisfactory acceptable, you book a physical assessment slot, online. A valuator visits you and, if the offer is suitable, the deal is done – paperwork and all – in less than 30 minutes," Muller continued.
Evaluation of the vehicle is done online and within 30 minutes while payment is also undertaken on the same day, says the company.
Niether the value of the new company nor the amount invested into it has been disclosed.
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