Driving change in the UK's used car market with Harry Jones from Motorway

Introduction and overview of Motorway (0s)

• Motorway is a UK-based online marketplace for used cars that connects private sellers with a network of over 5,000 verified car dealers. (1m48s)
• The platform features an app that allows sellers to create detailed vehicle profiles, including images and information relevant to potential buyers. (2m4s)
• Motorway facilitates daily online auctions where professional car buyers compete to offer the best price for the listed vehicles. (2m19s)

Early days and initial ideas for Motorway (3m3s)

• The speaker and their co-founders have had a long-standing interest in the car industry, recognizing it as a large market ripe for technological disruption and improved customer experiences. (3m25s)
• Around 2007, they explored the idea of an online service for scheduling test drives, aiming to bridge the gap between car manufacturers' online presence and the lack of transactional capabilities. (3m47s)
• In 2017, they shifted their focus to addressing the challenge of selling cars, aiming to create a fast, easy, convenient, and value-maximizing solution for car owners. (4m30s)

Pivot to its current model (5m50s)

• Founders should be comfortable with change and adapt their businesses as needed. (6m39s)
• In the early days of Motorway, the company frequently experimented with new ideas and websites, rapidly developing and testing concepts in the market. (6m50s)
• Motorway's approach involves identifying successful elements and iteratively building upon them, a strategy that continues to guide the company's evolution. (7m26s)

Working with dealerships (8m8s)

• Motorway decided to focus on the service, experience, and technology aspects of the used car market instead of holding inventory. (8m18s)
• Motorway believes dealerships are a valuable part of the used car ecosystem, handling tasks such as receiving, reconditioning, and providing warranties and financing. (8m41s)
• While acknowledging the negative perception of car dealerships, Motorway emphasizes its collaboration with entrepreneurial dealerships in the UK. (10m4s)

U.S. vs U.K. and market focus (10m18s)

• Dealerships in the UK are increasingly focused on providing positive customer experiences. (10m21s)
• The UK car market is self-contained due to its geography and the fact that cars drive on the left side of the road. (11m3s)
• Motorway is currently focused on expanding its market share in the UK and building a comprehensive end-to-end experience for buying and selling cars. (12m46s)

Initial traction, challenges and demand from dealers (15m5s)

• Dealers were initially attracted to the platform due to its wide selection of vehicles, which solved the problem of limited stock availability through traditional methods like auctions and trade-ins. (15m36s)
• The platform's early success was driven by a supply-focused approach, showcasing available stock to dealers and gradually persuading them to adopt the online platform as a more efficient alternative to traditional car auctions. (15m44s)
• The COVID-19 pandemic inadvertently accelerated the platform's growth as dealerships were forced to close to the public, driving both dealers and consumers to embrace online car buying and selling. (21m32s)

The co-founding team and their long-term collaboration (25m39s)

• Three friends, who had known each other since youth, collaborated on a number of business ventures, some of which achieved greater success than others. (25m54s)
• The friends' long-term collaboration has allowed them to develop a strong understanding of each other's strengths and weaknesses, enabling them to work together effectively. (27m11s)
• Before establishing Motorway, the friends worked from a derelict hospital in Camden Town, where they explored various business ideas, including mobile phone unlocking, online pharmacy, and a B2B car platform. (29m20s)

Lessons learned from previous companies (30m31s)

• Building a product based on personal needs and frustrations can lead to success, as it often resonates with a wider audience. (31m50s)
• Focusing on simplicity and prioritizing customer needs are crucial for product development and business growth. (32m36s)
• As a company grows, it's essential to establish a strong company culture and delegate responsibilities while staying connected to the core principles and customer focus. (34m6s)

Motoway's future (36m4s)

• It is important to stay connected to the customers and the company culture, even as a company grows. (36m29s)
• Motorway's founding team has launched multiple companies together, with Motorway being their most successful. (38m48s)
• Motorway's success is partly due to their focus on the UK market and their B2B approach, targeting dealers with a software solution for online car auctions. (46m7s)