United States, Te... "Executive Summary The Concept The automobile industry is one of the largest industries in the world. As such, it is ridden with inefficiencies in business process that can be improved dramatically through e-commerce. To exploit the electronic B2B potential of this market, UADE has developed an automated, fully integrated, dealer-only, auto auction for the wholesale trading of cars, light trucks, recreational and commercial vehicles. Unlike traditional auto auctions, the UADE auction will be available 24 hours a day, seven days a week. Like physical auctions, UADE will charge buyer and seller fees, that are substantially less than those charged by traditional auctions. As a result, the UADE online auction can save Dealers money and provide round-the-clock convenience and efficiency to its members. Value Proposition UADE offers convenience and cost advantages that physical auctions simply cannot provide. In addition to the advantages of lower fee structures and convenient hours, dealers save on the cost of sending representatives to physical auctions. Dealers wanting to sell a vehicle through UADE will keep it at their location until the sale is made, avoiding transportation costs to the physical auction. Fleet companies will see a reduction in cycle time. They will also have the ability to pre-list inventory. Reduced Costs Lower auction fees Reduced travel and shipping expenses Improved cycle time Faster sales cycle Inventory may be pre-listed Nationwide Reach Auction available nationwide Spanish and French language interfaces are in development Bundled Services Transportation, escrow, and financial services Research and inspection services Convenience 24-hour availability Automated bidding service Management Frank Marra, President and Founder, provides the vision for UADE, overseeing all aspects of the UADE brand, including the highest level of business development, production, marketing and sales. Prior to joining UADE, Frank spent more than 13 years in the auto industry, building a significant network of buyers, sellers, financiers and aftermarket distributors. Slava Rahmatoulin, IT Consultant, manages the company’s computer platforms, data computer and computer communications and computer networks. Slava has more than 25 years experience in information systems design and development, including acting as the project director for the creation of an international transaction processing system and related data center travel reservation services throughout Russia and Eastern Europe. Paul Bonner, Senior Technology Consultant, leads the technology and development. Paul has more than 20 years of technology development experience, is the author of several books on application development, and has been a regular contributor to several industry magazines. Market Opportunity Due to its efficiency and marketing potential, Internet sales are breaking down business barriers on a daily basis. Auto dealers will benefit greatly from this new technology both in generating demand for their vehicles and saving them thousands of dollars per year in processing costs. UADE currently has an opportunity to lower dealer’s costs and streamline their methods of asset disposal. Anyone in the wholesale auto market is a potential client for UADE. Because this product is in its infancy and is only being purchased by early adopters, it is difficult to say what percentage of potential buyers will actually utilize UADE’s auction over the next few years. Given the potential for massive cost savings in automobile re-marketing, we expect the electronic auto auction market to mirror the auto industry and increase tenfold by 2004. In any event, the market is clearly poised for tremendous growth. Competitive Analysis Our current competitors are traditional, physical auctions currently used by the majority of automobile wholesalers. They compete largely by reputation. Their major competitive strength is having years in the physical auction industry. With large investments in physical plants, these companies have little incentive to invest in electronic trading technologies. All current cyber lots operated by the physical auctions still require dealers to transport vehicles to the auction location. Our primary competitor is Manheim Auto Auction. Manheim Auto Auction is a division of Cox Enterprises Inc. They have 65 physical auction locations throughout the nation, and are among the first to offer online cyber lots for their customers. Their online services cost $50 per month range from market reports to obtaining run numbers to buying vehicles. Users select which physical auction they would like to attend. Adesa Auto Auctions have 32 sites between the US and Canada. They are owned by Minnesota Power, Inc. Manheim provides most of their online services. Adesa will be purchasing nine auction sites in conjunction with Manheim’s acquisition of ADT. ADT Automotive is a Tyco International Ltd., company. They have 30 locations nationwide. ADT now offers online services to franchised dealers only. Independents, consisting of wholesalers and used car lots are not eligible. Currently, Manheim and Adesa are jointly in the process of acquiring ADT. Strategy UADE will focus on four target markets. Our primary focus will be banks, insurance, salvage, and leasing companies. Second, we will pursue new car dealers and franchise holders. Third, we will solicit large-scale r...
Chief Executive Officer