Motobyo is an ecommerce marketplace connecting private party used car sellers to buyers.

Motobyo is an ecommerce marketplace connecting private party used car sellers to buyers. Utilizing our patent-pending valuation technology (patent number - 17886094), we aim to provide sellers with a cash offer, redeemable immediately, and an upside private party value that can be realized through our Online or Auction Listing solutions.

The core tenet of the Motobyo value proposition is providing the used car seller the opportunity to make more money than is currently available through a wholesaler or a dealer, while enabling the buyer to save money on their purchase. We aim to do that by eliminating middlemen, thus removing the inefficiencies within an antiquated industry, and passing that value back to our consumers.

And through our partnerships with major brands such as Firestone, Midas, Meineke, Credible, The Zebra, Acertus, uShip and others, we provide used car buyers with access to typical “dealer-only” services such as financing, extended mechanical protection, insurance and more enabling the buyer with capabilities instrumental in completing a transaction, thus potentially ensuring a successful outcome for the seller.

The American automobile is iconic. For some it’s an aspiration. It’s an identity. It’s a dream. For others it’s utilitarian, a means to an end. Regardless of your view there is a general commonality to ownership, the challenge of buying and selling a car. Why? Well, for one thing it’s good for business. The auto industry is antiquated and purposefully opaque. And it is highly inefficient. There is an embedded middleman labyrinth consisting of a wholesale auction process along with supporting wholesalers. They serve as a waystation for a vehicle in transit from one retail location to another. As vehicles move through this process, which is invisible to the consumer, profits are shared among the various parties (storage, transport, reconditioning, etc.) as costs pile up along the way.

At 30,000 feet this is the wholesale auction process:

As these costs are incurred and profits are created for the various parties, the consumer is the ultimate loser. When a vehicle seller goes to a dealership to sell or trade-in their vehicle, they fail to realize on average $2,000 or more of value. The dealer must cover the costs associated with the wholesaler and the auction process, so the vehicle seller generally subsidizes these costs. And the ultimate vehicle buyer may spend $2,000 or more for the vehicle because each step in the process adds incremental costs which are passed on to them.

In 2021, there were 43.1M used cars and trucks sold in the country. Each transaction costs buyers and sellers on average $4,000 in collective inefficiencies. That is $172B of total lost value the consumers subsidize due to this inefficient system.

And while lost value is clearly the most significant issue impacting vehicle buyers and sellers, there are other hurdles and issues as well. Completing a sale or purchase is a daunting process full of haggling, hassles, wasted time and anxiety.

In addition, most consumers do not understand a vehicle’s market value, the necessary paperwork or how to gain access to the services required to complete a transaction. Consumers contend with scams, fraud and have general concerns regarding safety, both financially and personally.

The reality is there is no benefit for the incumbent participants to address these issues. This is the reason why the industry takes the position of obfuscation. It’s in no one’s interest to discontinue the status quo. But it is the reason that Motobyo exists, and why we believe we have no competition. Everyone else is in the system - Motobyo is not, so we have created our own ecosystem.

Motobyo’s solution is elegant in its simplicity.

We employ an asset-free business model, never owning a vehicle or taking possession of the title. This is designed to enable Motobyo to be uniquely positioned as the advocate for the consumer, focused solely on their success. We have developed patent-pending vehicle valuation technology (patent application number - 17886094) that is designed to provide consumers with pricing values ranging from a cash offer similar to today’s wholesale prices, as well as upside retail value guidance to highlight the seller’s opportunity to get more money for their vehicle.

Motobyo has created a consumer marketplace connecting private party sellers and buyers.

This platform empowers sellers to maximize their value (on average $2,000+) while enabling buyers to purchase compelling inventory at prices generally $2,000 lower than the market’s storefront retail value. The combination of these capabilities effectively eliminates the middleman process monetizing the lost value of these inefficiencies and passing that value back to the consumer.

The impact is shown here:

The Motobyo platform not only creates efficiency where it once did not exist, but it also has designed a platform aimed at solving the roadblocks, obstacles and concerns a consumer has when attempting to buy and sell their vehicle. The Motobyo marketplace has pricing guidance, product solutions and best practices guidance addressing each of the issues shown here.

This is the essence of disruption and the definition of a win, win, win solution. The seller may maximize their value by receiving more for their vehicle, the buyer can save money since they avoid the market’s retail value and our partners benefit by providing ancillary services thereby profiting from a transaction that otherwise would not exist for them.

What's it like to ride with Motobyo?

• The company created an operational patent-pending used car valuation solution providing a guaranteed cash offer as well as an upside retail value giving consumers the opportunity to get more money.
• The company developed and launched an operational marketplace platform consisting of our valuation technology, a proprietary used car auction platform, the database infrastructure to support these capabilities and the necessary API links with each of our partners to exchange consumer and transaction information to enable our suite of services.
• The company established partner relationships with major auto-related brands in support of its value proposition. Those companies include Firestone, Midas, Meineke, Your Mechanic, Credible, The Zebra, Acertus, North American Auto Care, Carfax, Autocheck, Ekata and uShip.
• The company completed a $2.5M late seed round of capital to support its market beta launch in the Philadelphia DMA.

Since our beta launch in August 2022 we have:

• Averaged roughly 14,000 monthly web visitors to our site.
• Created a total of 5,000 leads and have had 850 consumers create accounts as either a seller or buyer.
• Completed a total upgrade of our website process flows including a complete rebranding of the site.
• Launched two new solutions into the marketplace. The first, an Online Listing which is a freemium classified fixed price listing service, as well as Motobyo Products, a retail marketplace providing a wide array of auto-related services.
• And, we have recently initiated a national ad test to determine market receptivity and develop market expansion insights. The response has been very positive to date with dozens of new account sign-ups across the country within the first few weeks.

Motobyo has an asset-free business model. We do not own vehicles or ever take possession of a title. As a result, we avoid costs associated with a dealership model such as the capital required to acquire vehicle inventory, the pricing risks associated with vehicle depreciation, inherent interest rate risks and the incremental costs required to support inventory management such as reconditioning, maintenance, storage, etc. This positioning along with our partner network for select auto services provides Motobyo with a significant amount of operating leverage regarding its own infrastructure and staffing requirements.

Motobyo’s revenue is derived from our three participating parties; the seller, the buyer and our partners. Roughly 60 – 70% of our revenue comes from the collective buying side of the transaction. We have three sales solutions – the Cash Offer, an Online Listing, and the Auction Listing. The Cash Offer and Online Listing are free to the vehicle seller, although they can choose to upgrade listing features with services such as Carfax ($29.95) and a vehicle inspection ($79.95) to enhance the desirability of their listing.

The Auction Listing has a $99 fee but again has the upsell potential to a White-Glove inspection service ($199) where a Motobyo partner completes an on-site independent vehicle inspection at the seller’s home or office. The Cash Offer can be fulfilled by one of our dealer partners (buying centers) and they reimburse Motobyo with an acquisition fee for each vehicle acquired. The buyer of either Listing solution would pay a $99 success fee. Partners either pay a pass-through, commission or lead generation fee based on the service provided. Examples of those fees would be financing through Credible, extended protection through NAAC, insurance from The Zebra, DMV services with Acertus and transport fees through uShip. An overview of the sources of revenue are:

The used car auto industry represents a huge opportunity.

The used car market is significant in terms of its size and its consistency over time. In 2021, the used car market totaled $1.66T and 43.1M used cars were bought and sold in the US. As the industry graphic below highlights over the last dozen years the average number of vehicles sold per year is roughly 39M units and over the last six years a little more than 41M vehicles per year.

And, it's a highly fragmented market. The top 100 used car dealers in the country only represent 10.5% of the overall market share of the industry. There is a substantial opportunity for market penetration and growth given the total size of the industry and the lack of dominant market leaders.

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