eBay has agreed on a deal to buy Cox Automotive’s motors.co.uk. This announcement comes as the American company increases its presence in the United Kingdom’s used car market after taking over Gumtree recently (in January 2018).
The deal will be finalised early 2019. eBay will integrate Motors.co.uk’s operations under Gumtree UK. eBay, Gumtree UK, and Motors.co.uk will cross-share classifieds in respective motors sections resulting in over 620,000 listings.
According to Gumtree UK’s general manager Matt Barham, the acquisition will offer UK car dealers increased reach by combining Motors.co.uk’s vast inventory, traffic, dealer engagements, and cutting-edge tools/services with in-market car buyers offered by Gumtree and eBay.
Car finance capabilities
The acquisition will also see Motors.co.uk bring part-exchange tools and car finance to the combined platform. The site introduces visitors to online broker Carmoney whose panel is composed of Barclays Partner Finance and Santander Consumer Finance. This will fill the noticeable gap between eBay and competing services like Auto Trader.
A few months to eBay’s acquisition, Gumtree offered a finance check feature on its Motors section but erased this feature months to the acquisition out of fears that the feature would scare off any potential buyers. According to Gumtree’s head of motors, Vik Barodia, Gumtree wouldn’t want increase potential responses to dealers since cars with outstanding finance can scare customer off.
Increasing demand for used car transactions in Europe
Through the acquisition of Motors.co.uk and by extension, its sub-brands which include Honest John, Parkers.co.uk, Raccars.co.uk and AutoVillage, eBay will increase an already stretched network of car-focused portals in Europe.
eBay has been involved in several acquisitions since the mid-1990s. Car marketplace www.mobile.de operating in France, Germany, and Italy is part of eBay. The same applies to Denmark’s BilBasen. These acquisitions add to generic classifieds website Gumtree whose global operations cover Poland, Singapore, Australian, and South Africa.
From Cox Automotive’s perspective, motors.co.uk disposal is a “refocus” from customer operations to data and logistics services for wholesalers and
According to Cox Automotive UK’s Chief Executive Martin Forbes, the eBay deal is great news as it enables the business, team, and brand to grow to the next level under new ownership that is more consumer-led.
According to Cox Automotive, the deal allows the company to shift focus to building on its strengths in supporting dealers, the wholesale market, OEMs, fleet & leasing customers with a connected retail proposition.
eBay was started in 1995. The company has an impressive portfolio of e-commerce brands that connect people via technology. eBay connects millions of buyers and sellers globally creating economic opportunity and empowering people. According to the latest statistics, the e-commerce giant has 177 million active buyers on its platforms globally. Other impressive statistics include a record 1.1 billion live listings and 429 million app downloads. eBay is among the top 10 list of global retail brands today. For the 20+ years eBay has been in business, the e-commerce giant has managed to establish a presence in 190 markets globally. eBay stands out for being open to everyone and empowering people via technology.
The e-commerce giant is arguably the largest most vibrant marketplaces for unique selections and great value. In 2017, the company recorded $88 billion in gross revenues. With the latest acquisition, eBay gives a vote of confidence for the used car market in the UK.
Motors.co.uk is dedicated to simplifying car buying/selling in the UK. The website has been in existence for over 10 years and boasts of a wide range of reliable cars, long list of UK car dealers and countless site visitors. The website has the best variety of independent and franchise car dealers, private sellers and car supermarkets offering unmatched choice. The site adds thousands of car listings daily increasing the chances of consumers finding what they want.
33% of UK’s digital population use Gumtree on a monthly basis. 1 in 3 adults uses Gumtree’s app every month making Gumtree UK’s top classifieds site and app. Gumtree’s Smartphone application has been downloaded 17.9 million + times. The website boasts of 1.7 million+ live listings at any given time making it the perfect platform for selling used cars and goods. The platform also has a variety of other listings such as properties to buy and rent, a variety of jobs, community events, professional services and much more.