Fixed Ops Magazine - 2021 Vol18 04 - 26

delivery services to keep bringing business into the
dealership. Since customers got used to these services
during the pandemic, as well as general delivery services
like DoorDash and Postmates, dealers are maintaining
these services for the foreseeable future.
But sending porters and chase vehicles to every customer's
home was not necessarily a profitable proposition.
Service Directors quickly realized that, just as
before, customers who used a vehicle pickup and delivery
service were likely to spend more on repairs.
Longo Lexus in El Monte, CA uses their software to
offer vehicle pickup and delivery to customers who are
going to be spending a minimum amount on repairs,
or to bring in business from fringe areas of the market
that they typically do not service. Using scheduling
and dispatching software, Longo Lexus is able to bring
in additional business at a higher profit margin. Customers
targeted through their vehicle pickup and delivery
service using a flatbed truck and a loaner swap
spend about 83% more on repair orders than customers
who simply drop off their car.
Going forward, dealerships who offer these services
will use it to attract and service specific types of customers
and repairs, while keeping their service lanes
26
line-free for customers who need quick services like
oil changes.
RIDE-SHARING SERVICES
Services like Uber for Business and Lyft have been
working with dealerships since before the pandemic.
When many dealerships furloughed shuttle drivers or
decreased loaner counts, they turned to these services
to provide a convenient and reliable service to
get customers to their desired destinations. Speaking
with several dealerships, we learned that the breakeven
point for using ride-sharing services to replace
traditional shuttle service was between 8 and 12 requests
per day. This was typically less expensive than
hiring a shuttle driver, maintaining a vehicle, etc. Many
customers expressed that they appreciated the convenience
and felt that they were being well-taken care
of by their dealership. " This dealership got me a free
Uber to the nail shop. So nice! " wrote one Twitter user.
" Dealership ordered me a Lyft. See, this is how you get
a great survey, " wrote another.
As with all these transportation options, a drawback is
the lack of control of the service experience. Once the
customer enters the ride-share vehicle, it is now out of
the dealership's hands. A Honda might come pick up a
Fixed Ops Magazine - 2021 Vol18 04

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