OfferUp says nearly 10 percent of all U.S. used car sales happen on its platform, so the company has created a new section to make it easier for buyers, sellers and dealers to do business through the mobile commerce app.
OfferUp Autos is meant to make the car buying process easier, with more information for buyers, access to millions of buyers for people selling their cars and a new subscription program for dealerships. OfferUp says its “Cars & Trucks” section has been among the top categories for the company dating back to its founding in 2011.
“Today, we estimate that nearly 10 percent of used car sales in the country flow through OfferUp, so launching OfferUp Autos to give people an even better car buying and selling experience made sense,” Nick Huzar, CEO and co-founder of OfferUp, said in a statement. “OfferUp Autos leverages the organic traction and growth we’ve experienced over the past few years, and builds simplicity into a process that is still largely fragmented and slow. As consumers continue to embrace mobile commerce, we know there’s a huge opportunity for independent sellers and dealers to start meeting them where they already are.”
OfferUp is one of several tech-powered marketplaces that have jumped into the used car market in recent years. Last year Facebook debuted a dedicated automobile section within Facebook Marketplace with partners like Kelley Blue Book, Edmunds and Cars.com. Amazon in 2016 introduced a new section of its website that includes specifications, prices, images, videos, and customer reviews for thousands of new and classic cars, but does not offer direct sales.
The tech industry’s dive into auto sales could some day make it easier to buy a brand new car online. But dealer franchise laws prevent online sales of new cars by marketplaces like OfferUp, and it doesn’t look like those are going away anytime soon.
OfferUp Autos aims to bring a big chunk of the sales process online for dealers. The program lets dealers get verified to inspire more trust from buyers, offer a variety of simple communication tools to talk to customers and schedule posts at the busiest times. OfferUp says its platform also integrates with dealers’ inventory.