On-demand car service startup Spiffy has closed a $10 million investment led by new investor Tribeca Venture Partners. The round also included new investors Zunis Investments and Trog Hawley Capital, and existing investors Bull City Venture Partners and IDEA Fund Partners.
“We’ve already expanded to six cities, so will be using the investment to continue to increase our geographical footprint as well as adding new services and capabilities,” CEO and co-founder Scot Wingo tells Hypepotamus.
Last July, Spiffy raised a $9 million Series B round to move beyond a car wash offering into all car maintenance services.
They added oil changes and tire rotations for consumer cars, as well as fleet maintenance services for commercial vehicle fleets.
They also launched their connected car maintenance tool, Spiffy Blue. The app lets the owner know when it’s time for an oil change, recall alerts, upcoming registration, and more.
“We started with car wash, but our aspiration has always been if we’re washing your car, what else can we do for you?” Wingo told Hypepotamus last year.
With this round, Spiffy is debuting what it’s calling Fleet Management as a Service (FMaaS), an end-to-end solution for rental car fleets, car-sharing services, and others to manage preventative maintenance on a large scale.
Fleet managers often have to deal with different vendors across the country when trying to service their vehicles, with no main hub to keep track of the current health and maintenance data of the fleet. Wingo says this forces them to “spend a ton of time on vendor management and coordination.”
With Spiffy’s solution, fleet managers can schedule, track, and pay for all preventative vehicle services through the Spiffy app.
“We can quarterback the entire process for the fleet manager from cradle to grave or in-fleeting, through preventative maintenance, to de-fleeting. The benefit is a simplification of the fleet management process.”
Spiffy will be expanding this Fleet offering to five new markets: Denver, New York, Phoenix, Seattle, Tampa, and Washington, D.C., with more to come later this year.
The market for fleet management alone is quite large. An Ernst & Young report found that fleet maintenance costs can be up to 50 percent of the total ownership budget. Staying on top of those costs pays off in the long-run.
Spiffy has competition, as the connected fleet market is quickly growing. Companies are increasingly seeking IoT and end-to-end solutions to gain visibility of the status and location of their fleet.
For example, Cox Automotive launched an end-to-end fleet services brand, Pivet, this past January. Similarly to Spiffy, it provides a hub for all fleet task management, with on-demand mobile offering provided by a Cox-acquired company called RideKleen.
Pivet’s services range from cleaning, detailing, and maintenance, to storage, parking, and more, and they service big-name clients like Lyft, Hertz and Clutch.
But Wingo believes the market has room to grow yet.
“Most existing fleet service providers are in one to three locations at most. We’re trying to tackle this at a national scale with a digital and green approach,” he says.
“We’re excited to invest in Spiffy as they continue to grow. The comprehensive Fleet Management as a Service offering positions Spiffy to ride the wave of change crashing through the automotive industry,” said Chip Meakem, Co-Founder and Managing Partner at Tribeca. “From rental and commercial fleets to partnerships with innovative ride-sharing companies, like Lyft, and the recent Ford connected car partnership, Spiffy is riding several megatrends.”
Wingo shares that to-date the North Carolina-based startup has more than 100 Spiffy vans servicing 11 cities, and more than 150 W-2 employees providing services.
“We’re eager to execute on our next phase of growth,” says Wingo.