Autotech startup ServiceUp secures $14.5 million financing to scale to new markets
ServiceUp, a high-growth autotech startup that provides unique end-to-end full-service car repair experience, has announced that it has secured its Series A funding of $14.5 million. Global investment firm Tiger Global led the round, along with participation from Hearst Ventures and Chaos Ventures.
Founded in early 2021, the South Bay startup connects consumers, via the ServiceUp app, to a ServiceUp Advocate who manages the entire repair process, including payments. Leveraging the company’s certified Partner Network, ServiceUp manages the entire car repair experience through its simple mobile app - from pick up, delivery, repair estimates, and management to payment, including BNPL (buy now, pay later) financing options and customer service. In addition, the company is building out a suite of ML/AI technology to drive efficiency in logistics, customer service, and marketing.
Nate Lippincott, investor, Tiger Global: “More than $150 billion is spent on auto repair every year. The industry is very fragmented and in need of an innovative solution that connects consumers with trusted independent repair shops. ServiceUp’s unique model is poised to bring the convenience of food delivery to auto repair. The initial market response has been very strong, and through our investment, we look forward to supporting this talented team as they expand ServiceUp into new markets.”
To date, ServiceUp has grown 20% month over month in 2022 and has established a vetted network of more than 150 top-rated car repair shops. The company is currently in four metro markets, San Francisco Bay area, West Los Angeles, Denver, and Phoenix, with plans to expand into ten markets by year-end. The Series A raise will be used to fund its market expansion, as well as investments in key areas including ML/AI, marketing, product, field operations, and business development.
Brett Carlson, co-founder and CEO,ServiceUp: “As consumers keep their cars longer due to rising car prices and lack of inventory, the time and cost to repair are becoming more significant investments for consumers. By creating an end-to-end, fully automated experience, ServiceUp has taken away the headache of car repair for thousands of customers. Early data shows our customers are saving an average of 4-6 hours per service by using ServiceUp as their car repair partner, which is a desirable alternative to managing it themselves and a lower cost than going to the dealer.”
In addition to its market expansion plans, ServiceUp also offers its consumer app as an employee perk to numerous large employers such as Amazon, NVIDIA, Meta, and LinkedIn. The company has corporate partnerships with NowRx and other fleet operators, and plans to significantly expand additional partnerships in the coming months.
Carlson: “We are excited about the trajectory for ServiceUp and building a better car repair experience for millions of customers. We feel ServiceUp is the next evolution in the connected economy and we are positioned to significantly improve the customer experience in the car maintenance industry."