Auction Edge and EBlock will start their partnership this month along with the McConkey Auction Group once they combine their individual technologies and launch MAG Now, their dealer-to-dealer auction platform.
The companies aim to host the first MAG Now auction event later this month.
They also plan on growing the program and allow consumers from Auction Edge to begin using the platform.
“Independent auctions are scrappy and very competitive by nature,” Auction Edge Chief Executive Dan Diedrich said in a news release. “Integrating Auction Edge with EBlock’s platform gives those auctions proven means to facilitate and expedite digital transactions.
“It empowers their success via the absolute best online dealer-to-dealer platform,” he said.
EBlock isn't the only company taking advantage of the expanding dealer-to-dealer auction market.
ACV Auctions is already operating within the market and recently raised $150 million in new funds to help purchase TrueFrame, an auto inspection services company.
ADESA also already offers its own TradeRev platform and Cox Automotive has its Manheim platform both of which provide dealer-to-dealer auctions.
EBlock launched in Canada in 2015, entered into the US market in 2019, and hopes its new platform will help independent dealers utilize the same services other dealers get to use.
“We are selling 5,000 dealer-to-dealer vehicles per month with EBlock in Canada, so when the time came to expand to the U.S., partnering with Auction Edge and piloting with the McConkey Auction Group was the obvious choice,” newly promoted Chief Executive Officer Jason McClenahan said.
“The team at Auction Edge has done an outstanding job building a consolidated buyer base of 50,000 buyers at over 200 auction facilities,” McClenahan said. “Likewise, MAG's auctions have set an incredibly high bar; the independent auctions have been searching for a better tool than what's out there, and we firmly believe that through this partnership, we're bringing them that tool.”
CEO of MAG and Chairman on Auction Edge's board, Bob McConkey, stated: “We've always been early adopters, but that doesn't mean we rush into using a technology for technology's sake.
“The partnership between EBlock and Auction Edge is the culmination of a lot of research, finding a lot of common ground, and 20 years' efforts in providing digital solutions for our customers.”