Photo Courtesy of Uber for Business

Photo Courtesy of Uber for Business

DEK: What will enable auto dealers to weather economic uncertainty and changing consumer preferences? The answer is surprisingly simple: better customer experiences at the dealership.

The story we hear from dealerships throughout the U.S. is remarkably consistent: On one hand, dealerships are optimistic since they're finally able to start rebuilding their inventories following the semiconductor shortage. On the other hand, there's a sense of unease, as though they're waiting for the other shoe to drop. The pandemic and the semiconductor shortage dealt a powerful one-two punch to auto dealers, and just as they were finding their footing again, fears of a recession have dampened their already cautious optimism. After all, analysts expect auto sales to drop by just over a million vehicles versus 2022, and almost 1.5 million compared to 2021.

What, they ask, can they do to stay competitive in such a turbulent market? How can they stay profitable and build relationships with loyal, long-term customers? Thanks to our relationships with hundreds of leading dealerships in the U.S. and around the world, I can tell you with confidence that the answer isn't being more visible online or having the latest and most diverse inventory or even the most compelling promotions (though all of those certainly help). Instead, the answer is surprisingly simple: It's all about improving customers' experiences at the dealership.

In fact, McKinsey cited a better experience at the dealership as the best lever auto dealers have to counter market disruption and maintain profitability. One way to deliver improved experiences is by making car shopping and servicing simpler, easier, and more efficient. Let's look at a few ways dealerships can accomplish just that.

A Smarter Alternative to Shuttles

Automotive maintenance appointments will always be a fact of life for drivers, but they shouldn't have to disrupt their day-to-day lives or take time off of work just to take care of their vehicles. And if they have to leave a vehicle overnight — or longer — customers can be forced to coordinate rides with friends and family members in order not to miss work and necessary appointments. While dealers often compensate by offering a shuttle service, these services are hard to coordinate and expensive to offer. After all, shuttles require vans, drivers, and maintenance staff — all of which incur additional costs.

Ride-sharing options, on the other hand, can be a smarter alternative. Central, an Uber for Business product, enables dealerships to organize rides for employees and customers — and even arrange delivery of parts. Instead of trying to coordinate trips that accommodate the needs of multiple customers in a single vehicle, auto dealers can request rides for customers in advance, take advantage of flexible pricing, and help ensure customers are picked up on time and reach their destinations stress-free. Best of all, dealers using Central can use a centralized dashboard to manage all their customers' rides.

Customers don't need the Uber app or even a smartphone! Dealers can request  rides for them, or customers can request a ride on their own time via the Uber app or text message.

Simpler and Easier Shopping

When a potential customer is in the market for a new car, the last thing you want is for them to arrive at the dealership stressed or short on time. Help them avoid the stress of traffic and finding parking by giving them a ride from their door to your dealership and back again in a clean, professionally driven car.

Consider this familiar scenario: Your dealership receives an inbound call from an interested prospect. They've done their research and they're interested in your inventory — but there's a catch. They've got to coordinate with their spouse to ensure the trip to your lot doesn't conflict with work or a childcare activity. With Uber for Business, you can tell that prospect that you'll give them a ride to your dealership. That's the kind of shopping experience that engenders good will, loyalty, and word-of-mouth marketing.

Free up Funds and Improve the Shopper Experience

If you're relying on shuttles, loaners, or rental car vouchers to help customers navigate to and from your dealership, that demonstrates a real dedication to customer service. But you can show that dedication more effectively, more consistently, and at a potentially far lower cost by giving them their own rides when and where they need them.

Shuttles, for example, require maintenance, cleaning, and dedicated drivers on the payroll. Those costs add up quickly — and they may be costing you more than you think. A dealership in Bellevue, Washington, for example, found that switching from a shuttle to rides with Uber for prospects and customers enabled them to reduce their spend by 47% — a savings of about $45,000 each year.

Rental car vouchers, on the other hand, can be a liability in terms of customer service. You can't know what's in their inventory or if what they have on hand is clean and well maintained. The Uber rating system allows passengers to rate drivers after every trip, which helps to maintain professionalism and service quality.

Uber also provides guidelines for the cleanliness of vehicles, and drivers are expected to maintain a clean and safe car. Passengers can report any issues with a driver's vehicle through the app, and Uber takes these reports seriously.

Uber also has a comprehensive vetting process for drivers, including a criminal background check, driving record check, and a review of their vehicle. Drivers must meet Uber's guidelines, or they're not allowed to drive on the platform. Drivers who receive consistently low ratings may be removed from the platform.

Plus, most riders will be familiar with the Uber platform. This familiarity can help put them at ease and enable them to avoid the hassles typically associated with rental cars, shuttles, and loaners.

In other words, you can save money and provide clean, customized experiences for every customer.

Faster Service With Deliveries You Can Trust

When a repair or maintenance ticket requires a part that's just on the other side of town or even in another town nearby, you could dispatch an employee to get it or wait for it to ship. But sending an employee takes them away from their necessary tasks, and waiting for a shipment just means the project will take longer — not something any customer wants to hear. Or you could use Uber for Business’s Central dashboard to request a driver and get an up-to-the-minute ETA on their return. That way you can give your customer a realistic timeline for their repair.

Of course, Uber for Business can help with more than just delivering parts. You can also deliver vehicles to new customers or to maintenance customers at their homes, workplaces, or the place of their choosing — without the need for an old-fashioned chase car. Just have your employee drive the customer's car and request a ride with Uber to collect them. This can free up the second worker usually used to drive the chase car, meaning they can focus on more valuable tasks, so you get more done around the dealership.

Takeaways

Today's customers expect customized experiences, and there's no better way to show that your dealership understands that than by making both shopping and maintenance seamless and stress free. By taking care of trips to and from your dealership with Uber for Business, you can showcase your dedication to customer service and demonstrate that you value your customers and their time. You can even save serious money in the process!

There's a reason the top 500 dealerships across 26 countries leverage Uber for Business to drop off vehicles, deliver parts, and replace the need for shuttles, rentals, and loaners. If you're ready to learn more about how Uber for Business can deliver ROI for your dealership, get in touch with the automotive team at Uber today. Your bottom line will thank you.

Charles Mizrahi is Head of Automotive Sales for Uber for Business. He has led the Uber sales team for the past seven years and partnered with organizations to provide more control and deeper...

Charles Mizrahi is Head of Automotive Sales for Uber for Business. He has led the Uber sales team for the past seven years and partnered with organizations to provide more control and deeper insights through features built for enterprise users.