I posted this idea as part of another thread, but thought it was worth its own thread in the Suggestion Box.
The problem:
How to quickly and efficiently ($$) provide a widely available repair service for a new automotive brand. To make service financially efficient, customers need to take their vehicles to a service center, but that will be inconvenient until you have lots and lots of service centers, and the very large number of vehicles sold to support them.
The solution:
Form an independent company (perhaps "Service America", or SA) that provides service to more than one brand of EV, including warranty service for Scouts and other select startups.
While at first glance, this might seem to be a bad idea as it would be more complex than just doing service entirely "in house", there are some key advantages.
- By handling service for multiple EV brands (warranty service and otherwise), the SA service centers will more quickly become profit centers instead of cash dumps.
- Because service centers will support themselves financially much more quickly, you can scale things up a lot faster.
- Because SA will be a separate company not entirely dependent on SM, it can be started immediately instead of waiting till certain SM milestones are achieved, thus speeding up the availability of SM service when the time comes.
- SA will be able to achieve greater financial success than an in-house solution because it will service a lot more vehicles due to handling different brands.
- SA can contract out with other startups, not just SM, to provide warranty service. (though perhaps enabling competitors is not a good idea?)
- This could be done by VW directly, with a budget that does not affect the SM budget.
- This might also be done as a franchise to further stretch the budget.
- There's going to be a vacuum as traditional independent service centers try to transition to the EV world. This will be well timed and placed to step into that vacuum.
When all is said and done, you will have created two profitable businesses instead of just one, and they will be synergistic, helping each other succeed.
Thoughts?
The problem:
How to quickly and efficiently ($$) provide a widely available repair service for a new automotive brand. To make service financially efficient, customers need to take their vehicles to a service center, but that will be inconvenient until you have lots and lots of service centers, and the very large number of vehicles sold to support them.
The solution:
Form an independent company (perhaps "Service America", or SA) that provides service to more than one brand of EV, including warranty service for Scouts and other select startups.
While at first glance, this might seem to be a bad idea as it would be more complex than just doing service entirely "in house", there are some key advantages.
- By handling service for multiple EV brands (warranty service and otherwise), the SA service centers will more quickly become profit centers instead of cash dumps.
- Because service centers will support themselves financially much more quickly, you can scale things up a lot faster.
- Because SA will be a separate company not entirely dependent on SM, it can be started immediately instead of waiting till certain SM milestones are achieved, thus speeding up the availability of SM service when the time comes.
- SA will be able to achieve greater financial success than an in-house solution because it will service a lot more vehicles due to handling different brands.
- SA can contract out with other startups, not just SM, to provide warranty service. (though perhaps enabling competitors is not a good idea?)
- This could be done by VW directly, with a budget that does not affect the SM budget.
- This might also be done as a franchise to further stretch the budget.
- There's going to be a vacuum as traditional independent service centers try to transition to the EV world. This will be well timed and placed to step into that vacuum.
When all is said and done, you will have created two profitable businesses instead of just one, and they will be synergistic, helping each other succeed.
Thoughts?
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