Gumtree Cars has achieved progress through their organic growth by providing vehicle buyers straight to dealers and is now ready to push into auto classifieds. The company is moving into classifieds because they believe most dealers want to see more competitors between car portals.
Gumtree Australia General Manager Martin Herbst said: “We are always hearing from dealers that they want alternative places to advertise their cars.”
Herbst said that about 1600 dealers represent more than a third to roughly half of the 150,000 car listings on the site. The remainder are private.
“So the dealers are increasing their proportion of the inventory on Gumtree Cars because we do a good job essentially of converting those people coming to Gumtree Cars into potential customers for dealers,” he said.
“We are really good at sending lots of traffic and potential demand into the cars category and then over to dealers. So I think we get a lot of interest from dealers because we are an alternative.
“We have been picked up by some of the bigger groups as well as the independents who are particularly mindful where they spend their money,” he said.
Read more here