How Independent Automotive Shops Compete with E-commerce Giants

by | Mar 12, 2024 | 0 comments

autologiQ provides a comprehensive digital platform for consumers. (l-r) autologiQ CFO, Ihor Dlugosz, CEO & Co-founder, Jeffrey Newhouse, President & CGO, Michael Smolders, CTO & Co-founder, John Brereton.

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At last year’s AIA Canada conference, the Google representative underscored a significant gap in the automotive service industry’s adoption of online service models. While other sectors like restaurants and groceries swiftly adapted to the new consumer behaviors catalyzed by the COVID-19 pandemic, automotive services lagged behind.

In the audience, Michael Smolders, President and Chief Growth Officer of autologiQ, couldn’t help but smile knowingly. He understood that more and more Canadians were discovering what autologiQ had to offer. Positioned as a leader in the digital transformation of the automotive service industry, autologiQ provides a comprehensive digital platform for consumers seeking various products and services for their vehicles.

From tires to maintenance, repairs, bodywork, and custom upgrades, autologiQ’s digital platform connects consumers with a team of virtual service advisors, enabling them to receive quotes conveniently from their mobile devices. One of autologiQ’s unique offerings is its proprietary financing program, Easy Monthly Payments (EMP), which makes services affordable, starting as low as $25 per month.

The cornerstone of autologiQ’s success lies in its robust partnerships with aftermarket retailers. Instead of viewing these retailers as competitors, autologiQ integrates them into its iQ Network, wherein partner shops perform the physical work on clients who have purchased through autologiQ. Partner shops retain full margins for labor and parts without the burden of initial quoting.

As an agnostic service provider, autologiQ has directed millions of dollars in new revenue to brands operating under systems like Midas, NAPA, OK Tire, Tirecraft, Trail Tire, and Speedy.

Sarnesh Narayan, who operates five Midas stores on Vancouver Island, acknowledges the strategic advantage autologiQ provides, stating, “It’s incredibly smart what autologiQ has been able to do. We see immense value in having a team of marketing professionals, service advisors, and technicians generating new business for us, allowing us to focus on client service and operations.”

However, autologiQ is more than just a lead generation platform. Their mission is to help consumers extend the useful life of their vehicles in an affordable way. Through a sophisticated platform and online sales process, autologiQ ensures client retention by facilitating necessary maintenance and repairs, ultimately enhancing vehicle longevity.

Graham Tanner, manager of Trail Tire in Edmonton, notes the recurring business generated by autologiQ: “We see a lot of the clients that autologiQ sent us coming back for another service in the next 6 months. The longer we remain a part of the iQ Network, the more we grow the number of clients that we service every month.”

Despite initial concerns about the impact of e-commerce giants like Amazon on the automotive service industry, autologiQ’s exponential growth, experiencing a 485% increase since October 2021, demonstrates the potential for independent shops to thrive in the digital economy.

Rob Labossiere, Director of Retail Brands at Groupe Touchette, emphasizes the value autologiQ adds to their banner program: “autologiQ is a big part of the value offering we provide with our Integra Tire, Tirecraft & Signature Tire banner programs.  Many of our stores are experiencing growth from the EMP and iQ Network program and we are happy to leverage the autologiQ team to service the digital market.”

Currently operating in every market in Ontario and the Western Provinces, autologiQ continues to expand its footprint. For more information, visit autologiQ.ca.

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