Speaking at today’s AutosBuzz event in Barcelona, Eduardo Jurcevic (LinkedIn profile), the CEO of Brazil-based auto marketplace WebMotors, discussed how the company made the transition from an online car catalog (launched in 1995) and a classified website (launched in 1999) to a dealer platform (launched in 2015). The latter involved a change from pay-per-ad to pay-per-performance, in addition to the creation of a more customer-centric culture.
In the first year after it made the switch to a dealer platform, WebMotors lost 40% of its dealers but clawed back this loss during subsequent years. The payoff for the company was significant revenue diversification: 91% of its revenue had come from paid listings, now around 58% of revenue comes from other sources.
According to Jurcevic, the key factors in this transition were the removal of friction from the customer journey and maintaining a high level of brand awareness. He added that the expertise and experience of parent Carsales also played a role in this, as did the purchase of car auction website Loop in 2018.
WebMotors is jointly owned by financial services giant Santander Bank (70%) and Australia-based auto specialist Carsales (30%).