AutoScout24 partners with used tires start-up Orbix

28 Jul 2017

Orbix, a new platform for buying and selling used tires, signed a cooperation deal with Germany’s No. 2 auto site AutoScout24 (AS24), the company announced this week (here in German).

Through AS24’s “Werkstatt,” users (both private and dealerships) will be able to access Orbix to purchase used wheels, tires, and rims. The terms of the deal were not disclosed.

The partnership expands the scope of “Werkstatt,” a service that allows private auto owners to book appointments for maintenance, repairs, and inspections at local repair shops, and at fixed prices. And now to buy tires.

Orbix, AutoScout24’s newest partner site

It also moves AS24 one step forward in its ongoing race with EBay-owned Mobile.de, the market leader. The latter has been enabling users access to purchase tires and countless other parts through sister site EBay Motors for years.

In announcing the cooperation, AS24 stated, “Now not only can users book appointments at repair shops, but they can also purchase tires, rims, and complete wheel sets and have them professionally mounted through one of our Werkstatt partners.” AS24 claims to have 40,000 partner garages.

Munich-based Orbix launched early this year as a b-to-c and c-to-c platform. It began a crowdfunding campaign in late June (goal: €250,000), and also announced last week it’s started a b-to-b service.

On the Orbix platform, private sellers and dealers can post ads and sell their tires. Successful sellers pay a fee to Orbix based on the sales price and type of item. Orbix manages the payment process through an escrow arrangement. Shipping can be organized through one of the platform’s partner companies, or directly by the seller through a delivery company of their choice.

In mid-July, Orbix bagged a seven-figure investment from an unnamed investor, the company claimed on its crowdfunding page.

On its crowdfunding site, Orbix claims it can achieve margins of 10 to 20 percent, which would translate into revenue of €20 million ($23.4 million U.S.) to €40 million per year. And it professes to be the only platform specializing in used tires, etc. That may be true (we haven’t found another doing exactly what it does in Germany), but it faces competition on the b-to-c front from numerous large dealerships that sell online and EBay.de. (EBay lists more than 122,000 used tires, nearly all from commercial sellers). And in the c-to-c market, classifieds marketplaces such as EBay Kleinanzeigen, Quoka.de and Markt.de are popular places to sell tires.

Orbix was founded by Jürgen Benzinger (managing director), a former used-auto sales manager, and three other co-founders.

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Kate Rodriguez

Kate Rodriguez covers the German market for AIM Group. She is a freelance business writer with an extensive background in public policy, business consulting and marketing. Originally from the U.S., Kate is now based in Munich.