ServiceUp, a car repair startup founded in early 2021, has secured $14.50 million in “Series A” funding. The global investment firm Tiger Global led the round with participation from Hearst Ventures and Chaos Ventures.
The company connects consumers via an app to a ServiceUp Advocate, who manages the entire vehicle repair process, including payments.
Leveraging the company’s certified partner network, ServiceUp manages the entire car repair experience through its app. This includes pick up, delivery, repair estimates and payment, including buy now/pay later (BNPL) financing options and customer service.
ServiceUp also is building out a suite of machine learning and artificial intelligence (ML/AI) technology to drive efficiency in logistics, customer service and marketing.
“More than $150 billion is spent on auto repair every year. The industry is very fragmented and in need of an innovative solution that connects consumers with trusted independent repair shops,” said Nate Lippincott, an investor at Tiger Global. “ServiceUp’s unique model is poised to bring the convenience of food delivery to auto repair. The initial market response has been very strong and through our investment, we look forward to supporting this talented team as they expand ServiceUp into new markets.”
To date, ServiceUp has established a vetted network of more than 150 repair shops.
The company currently operates in four markets: the San Francisco Bay area, West Los Angeles, Denver and Phoenix. ServiceUp expects to expand into 10 markets by year’s end.
The “Series A” funding will be used to fund the company’s market expansion as well as investments in such areas, as ML and AI, marketing, product, field operations, and business development.
“As consumers keep their cars longer due to rising car prices and lack of inventory, the time and cost to repair are becoming more significant investments for consumers. By creating an end-to-end, fully automated experience, ServiceUp has taken away the headache of car repair for thousands of customers,” said co-founder and CEO Brett Carlson. “Early data shows our customers are saving an average of four to six hours per service by using ServiceUp as their car repair partner, which is a desirable alternative to managing it themselves and a lower cost than going to the dealer.”
ServiceUp’s consumer app is an employee perk at various large employers, such as Amazon, Nvidia, Meta and LinkedIn. The company also has corporate partnerships with NowRx and other fleet operators, and expects additional partnerships in the coming months.
