Autoremarketing.com has a press release from a new site called CarGurus.com, it’s a user generated, car review site that offers an interesting new product called the Web Price Index. CarGurus.com wants to become the Wikipedia of the auto space, a title that should belong to Carfolio.com.
The Web Price Index aggregates prices from multiple sites and shows the residual value of a car, letting people know how well a car retains its value. Perhaps interesting for those who are concerned about the residual value..?
The most interesting part of this company, to me, is the management team and board of directors. Notably, the founders seem to all come from TripAdvisor, Simon Rothman is a director, former Vice President of eBay Motors, and a member of a private equity group is also on the board. A team that seems equiped for success in this space. My only question is what value the site currently provides.
Almost every research site provides values to cars and reviews of cars, some even from users. It’s highly competitive, and the other, established sites, all have more name recognition, content, and users. However, as Guy Kawasaki, entrepreneur, venture capitalist, and more, recently pointed out it’s easy and cheap to launch a new site, so in a sense, why not go for it.
Without knowing the management’s plans, I have a hard time seeing it become an established name, but it doesn’t need to be to make money. They are using a combination of affiliate programs and Google Ad Sense, and if they are able to promote their affiliate programs in an effective way, it could be interesting.