Modal, formerly known as Next Technology Inc., was an American-based company in San Francisco, that sold software for a dealership's website, allowing car shoppers to purchase new and used cars online.
 | |
| Formerly | Next Technologies (2015-2016) Drive Motors (2016-2019) |
|---|---|
| Company type | Private |
| Industry | E-commerce, Automotive industry |
| Founded | 2015 |
| Headquarters | , |
| Website | modalup |
In 2016, the company, then known as Next Technologies, entered the seed accelerator, Y Combinator.
History
editModal was founded in 2015 out of Khosla Ventures.[1] The idea came because there were very few solutions allowing users to buy new cars online but also allowing auto dealers to sell them.[2]
After spending a number of months looking for a car himself after he sold his first business to Yahoo! in 2013, the founder realized that the process was incredibly time-consuming and could be streamlined.[3] In an interview with TechCrunch he stated, "it became shockingly clear that ecommerce had not reached new cars." When speaking about the competition, they suggested that the vast majority of large car sales websites were effectively online magazines, listing cars that you could purchase in person.[4]
After the idea of the company was established, Next Technologies then entered seed accelerator Y Combinator in 2016.[1] This was following rapid growth in Modal's revenue. It was stated that it took only 10 months for their turnover to rise to $1 million in annual recurring revenue following their official launch.[5] They also attended the AutoVentures Conference in 2016, where Modal was listed as a contestant for the main award and pitched their product as the future of the auto industry. Drive Motors was announced the winner following Modal's presentation.[6] In June 2019, the company rebranded as Modal Commerce.[7]
Modal signed up their first enterprise client to date in 2016, with Asbury Automotive Group agreeing to test the software at a handful of their dealerships.[8] Later that year, Asbury announced they were extending the software to more of their dealerships.[9] Modal consequently added clients including Honda, Nissan, Porsche, Lithia, Group One, and others.
Mechanics
editDealers are able to implement the software and sell cars directly from the dealership website.[10]
References
edit- ^ a b "Drive Motors Lets You Buy a New Car Completely Online". Y Combinator. March 9, 2016.
- ^ "Meet another 29 Bay Area startups from Y Combinator's second Demo Day". Biz Journals. March 26, 2016.
- ^ Cutler, Kim-Mai (October 1, 2013). "Yahoo To Acquire Sports-Centric Mobile Developer Hitpost". TechCrunch.
- ^ Constine, Josh (February 11, 2016). "Drive Motors Lets You Actually Buy A Car Online. How Did This Not Exist?". TechCrunch.
- ^ "Fraser McCombs Capital Bridges the Gap to AutoTech". DrivingSales. November 29, 2016.
- ^ Geraldi, Ryan. "Recap of 2016 DrivingSales Executive Summit and AutoVentures". Dealer Refresh.
- ^ "Drive Motors Is Now Modal, Announces $5 Million From New Investors To Expand Its Automotive Digital Commerce Technology" (Press release). June 14, 2019. Retrieved June 14, 2019.
- ^ "Asbury expands online sales experiment". Automotive News. August 15, 2016.
- ^ Overby, Joe (August 10, 2016). "Asbury offers 100% online car-buying via Drive Motors". Auto Remarketing.
- ^ Gandarilla, Eric (December 2016). "Drive Motors Aims to Break Silicon Valley Mold". F&I and Showroom magazine.
