Confused.com deal and Covid bounce put used car start-up Motorway in the fast lane
A START-UP seeking to transform the used car market has struck a deal with Confused.com after handling more than £1.8m of sales every day during lockdown.
Motorway – which allows sellers to get a quote from several different dealers – is now being recommended to users of price comparison site Confused.
Demand for its services jumped at the height of the Covid pandemic, when physical dealerships shut. Tom Leathes, its boss, said: “The car industry is a very old-school industry.
“Most things happen offline – there’s very little transparency, very little technology involved, and lots of middlemen.”
Mr Leathes said he believed there was an “inherent lack of trust” in the used car industry, which meant the company relied on internet reviews.
The start-up has raised £14.3m from investors. Backers include LocalGlobe and Alex Chesterman, co-founder of property website Zoopla.
Motorway has enjoyed a sharp rise in business since the easing of the most strict lockdown measures. Mr Leathes said: “We realised there was going to be a shift because people who had traditionally used public transport were probably going to look at driving.”
The start-up hired another 30 staff members to cope with the increased demand, meaning it now has around 100 workers.