Gumtree, CarsGuide and Autotrader will come together to create a comprehensive automotive ecosystem and a joint proposition providing more reach, insights and tools for dealers.
By harnessing their collective strengths, the acquisition positions the three platforms as a powerful automotive solution for consumers to research, buy and sell.
Today the deal for eBay Classifieds Group (eCG), through Gumtree, to acquire Cox Australia Media Solutions (CAMS), which operates CarsGuide.com.au and Autotrader.com.au, has been finalised.
The deal will see the combined strength of Gumtree, CarsGuide.com.au and Autotrader.com.au, create an attractive car-buying platform for Australian consumers. The three brands stand alone as industry leaders, known for their respective strengths: Gumtree as the #1 destination for privately listed vehicles, CarsGuide.com.au as the #1 in automotive editorial and Autotrader.com.au as the #2 for dealer network customers.
By harnessing their collective strengths, the acquisition will create a comprehensive automotive ecosystem for dealers providing more reach, insights and tools. The three brands will maintain their own, unique buyer-facing experience for consumers with a joint proposition delivering a seamless car buying experience and more value for our dealer partners.
By strengthening the business’ automotive presence locally, the acquisition follows eCG’s verticalisation strategy, which has already been successfully executed in other countries, including in the UK, and aligns with eBay’s goal to become the #1 automotive classifieds marketplace globally.
Mark Kehoe, newly appointed Managing Director, Gumtree Australia, said: “Our key focus is to support the CarsGuide Autotrader team to develop one, consolidated proposition for car dealers and commercial partners and deliver incremental value. Consumers will have a choice between three shop windows to browse, buy and sell. This is just one step in the direction of Gumtree’s vision of, together, becoming the leading automotive marketplace in Australia, in line with eBay’s global vision for automotive classifieds.
With the acquisition of CarsGuide and Autotrader, we are creating a stronger automotive destination by adding a leading consumer facing automotive marketplace and dealer network to the portfolio, thereby improving our competitive edge in the Australian automotive market. We are excited to start working with the CarsGuide Autotrader team.”
Shaun Cornelius, CEO, CarsGuide Autotrader, said: “CarsGuide Autotrader brings together quality automotive editorial content and an engaged audience of auto intenders through our leading editorial site CarsGuide, a strong dealer customer base through Autotrader and cars-specific tools and resources to support Australian car buyers and sellers. Our team has deep vertical expertise and with a combined network of over 2,500 dealers we are excited to create a stronger automotive destination across the three brands. Along with Gumtree’s reach, insights and monthly connections, the collective will significantly benefit the Australian automotive industry.”
An elevated offering for dealers and customers
The combined offering will create distinct benefits depending on where consumers are in their buying or selling journey and a consolidated proposition for Australian dealers, and provide support as the automotive industry is working hard to recover following COVID-19 restrictions easing.
For consumers, the combined offering will provide a car-buying, browsing and selling destination across the three brands and significant volume of inventory in both privately listed and dealer listed vehicles.
For dealers, the acquisition will build upon Gumtree’s scale and insights and create three shop windows for partners to advertise, with an impressive combined 38 million+ visits* per month, as well as access to a strong suite of dealer tools, delivering more value through increased buyer connections and product improvements.
eBay Classifieds Group’s global verticalisation strategy as key driver
This acquisition marks an important step for eBay Classifieds Group (eCG), owner of Gumtree, in extending its stated global verticalisation strategy in the motors category, following the successful execution in other markets, including the UK.