Being in Detroit for 11 years and being part of the Techstars Mobility accelerator for 3 years, one thing I know for sure is that autonomous vehicle (AV) technology is not the only innovation in the mobility space. I predict that in less than 10 years the auto service market is going to become a multi-billion dollar industry. Let me break it down for you.

When was the last time you were excited to get an oil change, repair tires, get a car wash, or even fill up your gas tank? Unless you love wasting your time, the answer is never. The auto service industry is widely unprofitable due to the high retail infrastructure cost, low NPS score, lack of innovation, and a lack in its ability to penetrate deeper into the existing market.

There are numerous startups innovating in the auto industry bringing these services to you — Zohr (tires), Yoshi (car wash), and Booster (gas). In July of 2018, I came across Zohr and worked closely with them through a startup accelerator. Below are 6 reasons I bet on Zohr and you should, too.

1. Team, Team, Team 

The key to every successful startup is the founders. During the early stages, the vision, the market size, and even the product will change constantly. One thing that won’t change is the founding team.

During their time in Techstars Mobility accelerator, I worked closely with Zohr co-founders Komal Choong and Anoop Choong, and what I saw was that not only were they some of the most coachable people I had worked with, they were also hungry, persistent, and passionate about what they were building. Each day, they were the first to come into the co-working space and the last to leave. When they weren’t working on growing Zohr, they were hustling for operating capital flipping cars.

2. Lower Overhead Costs 

For example compare….

• Brick and Mortar: tire shops that store inventory and manage showrooms ahead of customer purchases have overhead to simply exist. Rent is charged on a per-square-foot basis, and prices can vary based on location. Not only must tire shops sign expensive leases, but if the shop does not sell enough tires, the owner is still obligated to pay the rent.

VS.

• Tire shop on Wheels: Zohr leverages technology to predict and schedule tire services for their customers, eliminating bulky inventory. A brand new Mercedes Sprinter van costs just $54K and eliminates pricey showrooms while making the customer experience 10x better. (Mercedes-Benz, hit me up for sponsorship.)

3. Scaling Big and Growing Deeper

After establishing a strong foothold in Kansas City and Dallas, Zohr found product-market fit and their services proved to be more efficient in serving the community as compared to a traditional tire shop.

Zohr scored an industry-leading net promoter score of 96 in a very unloved market.

With their hard work and early success, they put together a plan that would allow them to roll out into surrounding markets. Not only have they had steady growth, but they have also been able to build strong relationships and loyalty with their customers. Zohr scored an industry-leading net promoter score of 96 in a very unloved market. Contrast that to Goodyear’s net promoter score of 11.

4. Partnership Data

If a car manufacturer wanted to learn what percentage of ride-sharing drivers use their brand, they would go straight to Uber or Lyft for that data vs. the impossible task of going to multiple taxi cab companies across the country. Through innovation and ease of use, Uber and Lyft have helped triple the number of taxi drivers in the US.

Similarly, Zohr is on the path to change the way consumers buy and change tires. Therefore, if Michelin wanted to get a report on their tires, Zohr will have better data for them than traditional tire shops.

5. Vision: Vertical growth

Amazon started by selling just the products they had in their inventory. Once they figured out the supply chain and logistics to scale, they opened the marketplace for any vendor to sell their own products via Amazon. 

Similarly, Zohr is perfecting its tire logistics and is growing quickly while building a strong, potentially household name, brand. An interesting opportunity for them is opening up to other verticals by white-labeling their on-demand service platform to other vendors in the mobility industry.

6. Convenience is King 

Here are a few use cases illustrating a delightful customer experience.

Example 1: it’s a snow day, you are sitting on your couch with a warm blanket, drinking hot chocolate and watching TV with the family. Do you really want to leave your house and spend hours getting your tires changed? — Zohr, the tire shop that comes to you.

Example 2: you get to work and realize your tire is flat. You have a big meeting with the Board of Directors and a dinner date with your significant other right after work. Can you really want to skip the board meeting and your dinner date to go fix your tires and spend hours at the tire shop? — Zohr, the tire shop that comes to you.

Investing in the Future of Mobility

Those are the top reasons I’m bullish on this new startup. If you live in Kansas City or Dallas make sure to check out Zohr. If you are a potential strategic partner or investor interested in chatting with the founders, hit me up for intros at iamtops.com.

About Tops

 I am a 2x Founder, DJ, and an Investor in over 30 startups. I’m obsessed with mobility, under-utilized assets, and breakthrough technology. Currently, I am the Director at @BackstageCapital, a Mentor at Techstars, a Venture Partner at Venture Catalyst. I am easily bribed by #Brunch & #Cortados. Learn more about me and get in touch at iamtops.com. 🙂