Yahoo! Autos Partners With Detroit Trading Co. and AOL With CarWoo
Yahoo! Autos and AOL Autos are no longer working with TrueCar Inc. Last week Yahoo! Autos named Detroit Trading Co. as the technology partner to work with them on the car-buying service. AOL Autos is working with CarWoo.
CarWoo will provide shoppers at AOL Autos with a tool to seek dealer price quotes on vehicles. AOL Autos receives about 9 million unique visitors per month and CarWoo has 10,000 participating dealers that can compete for shoppers.
TrueCar has around 3,500 dealers. CarWoo allows a shopper to seek quotes anonymous from several dealers at once and then communicates with them when they have narrowed down their choice. CarWoo CEO Tommy McClung co-founded the California company in 2007. Shoppers are required to enter their contact information to get price quotes from dealers.
Detroit Trading Co. is a Southfield, Michigan based company where the leads are bought when shoppers provide contact information on the website. Detroit Trading resells the leads through a bidding process to the car-makers and third-party lead aggregates like Dealix and Autobytel.
Detroit Trading has a large number of franchised dealers and 25 carmakers that do business with them, which means that dealers will get a shot to quote their vehicle prices to shoppers at Yahoo! Autos. Yahoo! Autos receives about 12 million unique visitors per month.
TrueCar worked with Yahoo! Autos exclusively for 12 months until the companies agreed this month to end a 3-year contract that paid Yahoo! Autos $50 million per year for the leads that TrueCar was getting. TrueCar will continue to have a presence on Yahoo! Autos, but Detroit Trading will be running the primary price-quote service on the website.
[AutoNews]This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry