Business plan of an online platform operating in the auto-repair sector: Carfix project

Abstract

In Economy, it is known that information asymmetry between supply and demand leads to price unfairness. The car-service market is the best example of what happens when this asymmetry takes place. A high percentage of the car owners do not have the necessary knowledge to ensure that the budget proposed by the experts is fair and honest. It happens to each one of us - when our vehicle has a problem we go to one of these reparation service providers and they mysteriously find a bigger problem which will cost much more than expected. Even if we trust their expertise we leave with a small doubt about the veracity of the problem they identified in addition to the uncertainty about the price. The technological progress led to a huge increase in the speed the information is shared, and internet is one of the main causes for this effect. This phenomenon led me to find a solution for the identified problem in the auto-repair market. A mediating platform between car owners/insurance companies and auto-repair services’ providers. This e-service helps both sides of the bridge. First, by creating a virtual perfect competition market whereby car owners In Economy, it is known that information asymmetry between supply and demand leads to price unfairness. The car-service market is the best example of what happens when this asymmetry takes place. A high percentage of the car owners do not have the necessary knowledge to ensure that the budget proposed by the experts is fair and honest. It happens to each one of us - when our vehicle has a problem we go to one of these reparation service providers and they mysteriously find a bigger problem which will cost much more than expected. Even if we trust their expertise we leave with a small doubt about the veracity of the problem they identified in addition to the uncertainty about the price. The technological progress led to a huge increase in the speed the information is shared, and internet is one of the main causes for this effect. This phenomenon led me to find a solution for the identified problem in the auto-repair market. A mediating platform between car owners/insurance companies and auto-repair services’ providers. This e-service helps both sides of the bridge. First, by creating a virtual perfect competition market whereby car ownersIn Economy, it is known that information asymmetry between supply and demand leads to price unfairness. The car-service market is the best example of what happens when this asymmetry takes place. A high percentage of the car owners do not have the necessary knowledge to ensure that the budget proposed by the experts is fair and honest. It happens to each one of us - when our vehicle has a problem we go to one of these reparation service providers and they mysteriously find a bigger problem which will cost much more than expected. Even if we trust their expertise we leave with a small doubt about the veracity of the problem they identified in addition to the uncertainty about the price. The technological progress led to a huge increase in the speed the information is shared, and internet is one of the main causes for this effect. This phenomenon led me to find a solution for the identified problem in the auto-repair market. A mediating platform between car owners/insurance companies and auto-repair services’ providers. This e-service helps both sides of the bridge. First, by creating a virtual perfect competition market whereby car owners will get the best price. Secondly, by exposing auto-repair garages to an infinite pool of potential customers. After having identified this market gap, I realized I have an option B for my professional career, entrepreneurship.

Em Economia, é sabido que a assimetria de informação entre a procura e a oferta conduz à prática de preços injustos. O mercado da reparação automóvel é o melhor exemplo do que acontece quando esta assimetria tem lugar. Uma grande percentagem dos proprietários de automóveis não tem o conhecimento necessário para garantir que o orçamento proposto pelos peritos é justo e transparente. Acontece a cada um de nós – quando o nosso automóvel tem um problema, vamos a uma oficina e eles encontram, misteriosamente, um problema maior que nos vai custar mais do que inicialmente esperávamos. Mesmo que confiemos no conhecimento deles, vimo-nos embora com uma pequena dúvida relativamente à veracidade do problema e ao preço do arranjo. O progresso tecnológico resultou num grande aumento da velocidade à qual a informação é partilhada e a internet é uma das grandes causadoras deste efeito. Este fenómeno levou-me a encontrar a solução para o problema identificado no mercado de reparação automóvel. Uma plataforma de mediação entre os proprietários dos veículos / seguradoras e as oficinas reparadoras. Este serviço online ajuda os dois lados da ponte. Primeiro, através da criação de um mercado de competição perfeita virtual, através do qual os proprietários terão acesso aos melhores preços. Segundo, expondo as reparadoras a um número infinito de potenciais clientes. Após ter identificado esta lacuna do mercado, cheguei à conclusão de que tenho uma opção B para a minha carreira profissional, o empreendedorismo.