Crackberry, Sidekick, Smartphone - whatever you want to call them, they’re in everyone’s hands and people aren’t just talking.

We’re doing a lot more than just talking and taking pictures now. With over 1 billion text messages sent daily, the practical applications are being recognized and implemented by businesses more frequently.

I was fortunate enough to meet Shuki Lehavi, CEO of Gumiyo recently; It didn’t take me long to recognize we shared the same fervent enthusiasm for all things tech related…and our kids.

My position gives me a unique perspective on some of the changes to the infrastructure to the car business - some at a snails pace while others in the blink of an eye.

Check out some of Shuki’s comments from our conversation. I see things getting easier for both automotive consumers and dealers as they both embrace the changing landscape of car shopping…

WBUC: Describe your background and experiences which lead up to your current company:

SL: Simply put- I love applying technology to market. I’m an avid technologist and have been building mission-critical enterprise applications for over 12 years now. In my free time, I research mobile technologies and build robots. As mobile technologies emerged in the past three years, I constantly asked myself ‘what is the role of a mobile device in the traditional buyer-seller junction?’

WBUC: What was your “light bulb” moment that made you decide to start Gumiyo.com:

SL: Driving back from work one day, I noticed a car parked on the side of the road with a “for sale” sign on it. It occurred to me that the information that triggers a conversation between buyers and sellers is as simple as a picture, price and a little description. I then realized that the mobile phone would be the best device to display inventory and promote a conversation between buyer and seller – anytime and anywhere.

WBUC: Have to ask…where does Gumiyo’s name come from?

SL: Great question, and there’s a story there as well…. Gumiyo started as MobiZar (mobile bazaar). I always hated the name and during the first focus group I held, one guy said that he will never list a high-end product in a ‘bazaar’ like site. As I came back home that night, my 2yr. old opened the door as he held his teddy bear, “Adam”, I asked, “what’s the name of the bear?” He simply replied,“Gumiyo.” Once, I heard that - I knew I found the perfect name.

WBUC: You’ve got 4 primary target markets/segments…share your thoughts on the trends you’re seeing in the automotive business & how do you see online consumers benefiting?

SL: Used cars dealers are true pioneers! They are the first to adopt any technology and use it to build their brand and their sales. What we have proven, is that the mobile device is a great tool during the final stages of the sales funnel. During the first stages of the buying funnel, a user focuses on research/comparison activities, and uses the web. During the last weeks of the purchase funnel, the user is looking for a dealership or a deal in a specific dealership.

During the last few weeks – connectivity is a must. Not only outgoing connectivity (dealers following up on leads anytime) but also incoming connectivity (making your inventory available to buyers anytime). Mobile solutions bring exactly that – connectivity! The buyer can be at the car wash, browsing through a newspaper – one text message to your Go Code™ and they can browse your inventory from their phone. The dealership team and the buyer are always two clicks away.
WBUC: What other trends/new developments do you see in the mobile marketing segment?

SL: Without exposing too much, I think that (mobile) video support, location based services (LBS) and instant messaging will be the technology drivers. Mobile marketing efforts will evolve to be targeted, concise, location focused campaigns that will allow a dealer to bring the right buyers to the lot instantly.

WBUC: Any new products/services to expect from Gumiyo?

SL: Gumiyo evolved from a solution to a platform and in the coming weeks and months we will extend our reach and depth. You will see us provide more capabilities in the areas of reporting, campaigns and tie more buyer-facing mobile tools (like our CARFAX mobile reports). In addition, you will see supplemental products and services from our partners, build on top of our platform. These supplemental products allow existing automotive vendors to build mobile-facing products with us and provide these tools to the dealers on our platform. 

Thanks Shuki…best of luck to you and Gumiyo.

Since I’m sure you’ll grab your phone shortly after reading this - when you do, text 399NY to 48696 to see the Gumiyo application at work. 

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I was fortunate enough to meet the founder of a new online automotive community.

Unique sites can easily be traced back to their equally unique founders. I’m referring to Wei Yang – a very cool and talented entrepreneur. [Follow his Tweets & you’ll quickly see…]

Wei was kind enough to share his thoughts on the auto industry with WhyBuyUsedCars.com…and our job is to provide online auto shoppers with the best used car information.

WBUC: So Wei, what’s your newest online initiative all about?

WY: EasyAutoSales.com is a free, ad-supported autos web 2.0 service which helps private sellers and dealers sell cars online.  The EasyAutoSales team consists of a group of serial entrepreneurs with various backgrounds in programming, marketing and sales. 

WBUC: Share your online career background and highlights.

WY: All of us have worked on other startups in one form or another and our team has a rather complementary set of skills.  My last startup began in college and it was an online matchmaking service for parents and babysitters.  The service was recently sold off to a competitor so I can focus on getting EasyAutoSales.com off the ground.

WBUC: What do you feel your unique competitive advantage is with EasyAutoSales.com?

WY:  The online automotive classified business is starting to show its age.  10 years ago, when AutoTrader and other online auto sites started listing cars online, it was revolutionary and it replaced the newspaper’s 4-line, 1-inch wide classified ads.  However, 10 years later with more advanced technologies, cheaper distribution costs, and new ways to promote products and services via social media, we are still seeing the old model of doing business - which is to charge dealers and private sellers to distribute their inventory on the web. We think it’s time to modernize the way cars are sold online. 

The web 2.0 way says distribution should be free.  With services like Amazon’s S3 that charge 15 cents for a gig of hosting, photos shouldn’t really be limited to 1 or 4 or even 30.  Dealers should be able to post unlimited numbers of high quality photos if they so choose without being “taxed” for trying to sell their car.EasyAutoSales.com plans on making the process of selling cars on the internet easy.  Our service will grow and change like the web but what we’re hoping for is to make sure dealers recognize the importance of online leads and that paying attention to inquiries over the web will generate sales.   

WBUC: What are your goals for the site?

WY:  We want to host the largest collection of cars on the web and to give our shoppers options.  Due to rising costs with other auto classifieds, there is a whole market of cars sold by small dealerships that never make it on the large search sites.  We want to make sure these smaller dealerships can have the same opportunities and face time as larger dealerships - everybody should have a presence on the web; it IS 2008 after all.

WBUC: What has the response been within the dealer community to your pre-launch activities?

WY: The dealers we have talked to so far have given us great responses and encouragement.  Those that “get it” realize the value of our service and want us to help them tap into the minds of the online shoppers.  One of the best quotes we received from an anonymous dealer, who is currently ticked at a certain Trader company, said, “You guys came at a great time! A__T_____ has changed from taking me to ball games in sky boxes to just delivering me the bill.”   I think it speaks volumes when a lot of dealers are paying more and getting less (due to increasing competition) and want other options.

WBUC: What are some of the trends you see happening within the automotive retail industry?

WY: As more people rely on the internet for research, I believe the rest of the retail auto industry (small & medium sized dealers) will catch up by establishing a web presence, so they too, can be in front of the customers when they’re ready to buy.  I’m personally hoping that sites with crazy scripts and virtual assistants will go away in exchange for more useful, and user friendly sites. Flash is only cool the first time you see it, afterwards it’s just another barrier between you and the users.Hopefully within a couple of years every dealership out there will at least have an internet connection on site and hopefully they will all pay attention to their online leads.

WBUC: What are some of your predictions for the automotive retail industry?

WY: I think people will demand more eco-friendly and better performing cars.  If the Big 3 isn’t putting more money into green R&D, then they will continue to lose out to those who are.  I would like to see these companies (with the money) do something drastic that will help shape the world and change the future for the better.  Innovation comes from need and if we don’t feel we need it and aren’t pushing ourselves, then nothing will ever change. 

Everyone freaked out about Y2K when it was discovered, but as a world, we solved the crisis in 2 years because we had to.  I think making a 100mpg or 250mpg cars is not impossible if we decide we want to try.  The problem is getting the companies to try it.As a startup, EasyAutoSales.com is definitely one that will be trying new things and help dealers reach consumers. 

I’m hoping to get more dealers on board and together figure out how to use technology to our advantage.  People are accustomed to the convenience the Internet has brought them and as technology progresses; people want an easier shopping experience when buying a car.  Our goal is to get us closer.

Thanks Wei – appreciate your views…Best of luck to EasyAutoSales.com.

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I see the paradigm shift within the used car industry more and more every day. The consumer behavior and activity is being noticed by new players within the industry - finally.

CarTango is a unique online venture with an extremely interesting concept: Social matchmaking targeting female automotive customers. The power of Web 2.0 is finally making its way to the automotive sector.

Talking with Daniel Osborne recently, CEO of CarTango, he enthusiastically shared his thoughts about his company and the industry. Automotive consumers deserve better ways to shop online - CarTango is making great strides by offering online shoppers, especially women, a creative approach to shop for the best used cars available.

WBUC: What was your driving motivation behind the launch of CarTango?

D.O: Creating a better car shopping experience for women. What we found is that by enhancing the consumer experience we were also providing dealerships with more opportunities to have better quality connections with buyers. The female demographic has been academically acknowledged by the automotive industry for years, but very little has been done to meet their unique needs. CarTango provides an innovative suite of tools designed around how women shop, and it also provides the industry the right context to connect and engage with them.

WBUC: How has the concept been received thus far?

D.O: The reception has been fantastic by both consumers and the industry. The Car Soulmate Survey has been a big hit for consumers. It is the part of our site that is receiving the most traffic.  Female consumers are looking for a better shopping experience and car dealerships are looking for better ways to connect with them. We have been very pleased.

WBUC: What [other] trends do you see developing in the retail car industry? 

D.O: The dealerships like AuctionDirectUSA that are not only adapting to the Internet trends but pioneering creative ways to use it are going to continue to be the most successful dealerships.

WBUC: What are your thoughts on major 3rd party channels being a little ‘late to the party’ with regards to not serving the retail customers’ true needs?

D.O: They have positioned themselves as a barrier between consumers and dealerships. Although this position helps make them a significant amount of money, its a disservice to buyers and sellers. Under the current model, at the point where the buyer information is captured and sold to dealerships, the buyers know little or nothing about the dealership, and are often too far from making their buying decision, or even know what car is best suited for them.

Under the current model, sellers know little or nothing about the buyers and their relevant activities online, including what other vehicles they are looking at and where else they are shopping. This information is incredibly powerful, and is what CarTango provides to dealers.

WBUC: What else do you see on the horizon for CarTango.com?

D.O: We will continue to improve the female car shopping experience and create better opportunities for car dealerships to connect with them. The more options we offer to female consumers to help them feel comfortable with the car buying experience, the more qualified the leads will be for dealers. We also plan to ultimately invite private sellers to utilize the site; thus giving women car shoppers more options and giving another seller demographic some competitive advantages that are currently unavailable to them.

WBUC: Thanks Daniel…Best of luck!

Be sure to check out CarTango.com and have fun at the dance.

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Everyone wants the best price on a used car. Up to 80% of used car shoppers are looking for their next deal online; shoppers visit over 10 different car sites before even visiting a dealership. Knowing this, a consumer may ask why car dealers don’t try harder to price their inventory more competitively.  A new company is shaking up the used car market with the first and only solution to an old problem.

Only three years old, vAuto is making a strong impact on used car dealers. Their revolutionary system helps dealers price, appraise and stock pre-owned vehicles. The winners? Dealers AND consumers.

I spoke with vAuto’s Chairman and Founder recently, Dale Pollak. His enthusiasm, knowledge and passion for changing the used car industry rings loud and clear. 

WhyBuyUsedCars: What was your driving motivation in creating vAuto’s used car pricing solution?

Dale Pollak: I quickly saw the huge disconnect between the way traditional dealers price their vehicles and how consumers compare car prices on the Internet.  Most dealers mark up their acquisition costs by $3,000 - $5,000 and place the vehicle on the Internet at that price.  Consumers, on the other hand, can (and do) easily sort and search for the best values in the market.  This renders the majority of the used cars on the Internet as uncompetitive from the customer’s perspective. I saw this as a really big problem and one that needed to be solved…so I created the vAuto solution.

WBUC: How have dealers responded to vAuto - what’s the feedback so far?

DP:  Very positive right from the start; our sales have soared. The next phase will be exciting as dealers begin to see their own sales pick up as a result of working with us.

WBUC: What was the buzz like at NADA this year in San Fran?

DP: Our traffic at NADA was over the top; we had standing room only for nearly the entire show.  I think dealers have figured out we have something really special to offer.

WBUC: What opportunities do you feel dealers are missing?

 DP: Although dealers are eager to acquire our tools, they still have significant cultural challenges in using them correctly.  Specifically, most dealers want to price their vehicles to make the biggest margin possible rather than to price them to market.  It takes a lot of discipline for a dealer to price vehicles to what the market will bear rather than to a higher, pre-determined profit margin.  Progressive operations, such as Auction Direct USA serve as important models of how to successfully serve the used car market. 

WBUC: Notice any trends developing within the industry?

DP: The used car market has become efficient and transparent.  In my opinion, dealers must price used vehicles according to the market if they expect to see buyers show up at their door.  As more dealers catch on, there will be less negotiation and in many cases, none at all.  I therefore believe that whether dealers recognize it or not, negotiation-free selling is in their future.

Thanks for the comments Dale, keep up the great work!

Dealers - If you haven’t seen it yet, check out their used car pricing solution.

Consumers - Keep searching for the best used car prices. If Dale has anything to do with it, it’ll probably be easier in the near future.

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