According to a Securities and Exchange Commission filing, Roadster, a Palo Alto-based digital platform that provides dealers with tools to sell new and used automobiles online, has been bought for $360 million by retail automotive technology business CDK Global Inc.
Roadster is now a fully owned subsidiary as part of the all-cash transaction. Since its inception in 2013, Roadster’s business strategy has developed. Initially, the online sales platform featured dealers’ goods on its site, but also handled the full sales process with buyers. Roadster now works more closely with dealerships, giving digital retail solutions straight to them.
These digital tools have assisted dealerships in entering the contemporary era and serving clients who have grown accustomed to making retail transactions online, particularly in the previous year.
“Consumers have demonstrated an increased willingness to purchase large cost products online, and this trend has fast escalated during the pandemic,” stated Brian Krzanich, president and CEO of CDK Global, in a statement. “In order to achieve customer expectations, the car sector must integrate the appropriate technology, data, and infrastructure to better connect its online and in-store experiences.”
CDK is notable for streamlining the automobile sales process with digital technologies such as Connected Store, a digital quotation, loan, and payment tool, and Elead CRM, a lead generation software platform. The Roadster assets will connect CDK to dealer back-end systems, resulting in a more smooth end-to-end sales process.
“Automotive retailing is extremely complex, and the best way to create a truly frictionless, end-to-end buying experience is to fully integrate our technology with the back-end systems that power dealership sales, finance, and operations, regardless of provider,” Roadster founder and CEO Andy Moss said in a statement.