Why YourMechanic (YC W12) Chose to Grow Slowly

Re:Why YourMechanic (YC W12) Chose to Grow Slowly by marcell on Tuesday March 01, 2016 @01:44PM (#11204972)

YourMechanic is interesting in that, unlike many other "on-demand" startups, the economics make a lot of sense. They are able to pay their mechanics more than a standard shop (eg. dealer) can pay, and at the same time generally offer same or lower rates for the consumer.

This is probably a combination of two factors: (1) unlike driving, repairing cars requires quite a bit of skill, so the mechanics have some protection against wage cuts (compare to Uber), and (2) a standard mechanic shop has overhead that YourMechanic does not.

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Re:Why YourMechanic (YC W12) Chose to Grow Slowly by artag on Tuesday March 01, 2016 @01:56PM (#11205089)

Hey Marcell! You nailed it. 80% of the money that consumers pay in the shop goes to the shop, not the mechanics (because of the infrastructure cost). This allows us to pay more and charge less, still have healthy margins.

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Re:Why YourMechanic (YC W12) Chose to Grow Slowly by hkmurakami on Tuesday March 01, 2016 @04:01PM (#11206020)

Yesterday I saw a "on demand" bike repair truck driving around in my neighborhood and had the exact same thoughts as you. The operational numbers immediately came to mind and the business looked attractive to me with the obvious sales funnel challenge. It's quite a nice business model.

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