The man who started Auto1, a European used vehicle stocking service, has stated that artificial intelligence will assist them to meet the requirements that retailers have from all over Europe. This will also prevent any problems with supply and help avoid possible economic problems in the future.
Already Hakan Koc, co-founder and co-chief executive of SoftBank-backed Auto1, has 35,000 cars on the balance sheet of the start-up business and its new credit business, Auto1 Fintech, which was established with Deutsche Bank and Allianz earlier this year.
A Financial Times feature stated that the German start-up raised €460m earlier this year from SoftBank’s Vision Fund in one of the biggest tech funding deals in Europe and will use machine learning technology to buy tens of thousands of cars each month, before selling them to car retailers in more than 30 countries.
Koc told the FT that he was aware the platform presented “a lot of risk”, but he is confident in his AI-based trade knowledge. He said: “We can see clearing prices, we can see what people sell to us for, what people are buying for…the algorithm comes up with a price thesis and says at this moment of time is it relevant that this seven-year-old car is green, or does it matter whether it has leather seats or not.
“You have the selling side certainty, the buying side certainty and the balance sheet becomes a technical function.”
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