Automotive Ventures is excited to share our latest investment: Chaiz, the first price comparison site to research, compare and purchase vehicle protection products 100% online.
We were honored to participate in an oversubscribed $3.7M seed round, led by ResilienceVC with further participation by FJ Labs, RedBlue Capital, Everywhere Ventures, SpringTime Ventures, and others.
Read the full announcement here.
What Does Chaiz Do?
Chaiz aggregates the offerings of the best third-party service contract (breakdown protection) providers in the industry and delivers transparency in pricing and coverage. Consumers can compare products online and save.
The Chaiz technology is also fully embeddable/integratable into any 3rd party site/app. You can check out their partnership page here.
The company is on a mission to change not just the way people buy protection products for their cars, but to change an industry. For too long, people who rely on their car and simply want peace of mind driving it were pushed into overpriced and ill-fitting protection products by aggressive call centers.
Chaiz enables everyone to find vehicle protection that fits their needs and budget, at their own pace. Chaiz will stay independent and will ensure that providers are vetted and claim processes are handled professionally. The company believes its role has to be more than just a marketplace, but to enable all parties involved to evolve into a digital-first experience from A-to-Z with the customer truly at the heart of the experience.
The company is dedicated to bringing transparency and choice to the extended car warranty market, ensuring that consumers are protected from unexpected repair bills without the intrusive practices common in the industry.
Consumers can compare plans in seconds from multiple providers, get protection for their vehicle with just a few clicks, and save on average $1700 versus buying from a call center.
Key value propositions include:
30-day money-back guarantee: Chaiz will refund 100% of a customer’s downpayment for up to 30 days if they change their mind.
Cancel your plan anytime: If a consumer no longer needs the coverage on their car they are welcome to terminate their plan at any time.
5-star customer support: Chaiz has a dedicated team ready to assist consumers with their purchase or answer any questions.
Exceptional Leadership
One of the key factors influencing our investment decision is the exceptional leadership team at Chaiz. The Chaiz team has extensive relevant industry experience and is deeply passionate about providing consumers a best-in-class experience
Reto Bolliger: is the Co-founder and CEO. He previously founded Follow Alice, a company that remains profitable to this day. Before that, Reto served as an Executive Director at Goldman Sachs. With a strong track record as a 3rd-time founder and 2nd-time CEO, he brings extensive leadership experience.
Ryan Hartman is the Co-founder and CMO, bringing 17 years of marketing leadership to the team. He has deep expertise in fintech, automotive, and insurance industries, having spent 15 years in these sectors. Ryan most recently served as SVP and Head of Marketing at The Zebra, where he led impactful marketing initiatives.
Philippe Koenig is the Co-founder and CPTO, with 12 years of product leadership and over 20 years of experience as a developer. He has previously held roles as a founder, CTO, and CPO, demonstrating a strong background in both technical and strategic leadership.
What Problem Is Chaiz Solving?
With the average age of vehicles on U.S. roads reaching a record 12.6 years, and the most common check engine light repair costing over $1,300, the need for high-quality, affordable, and reliable extended car warranties has never been greater. Chaiz empowers consumers to make informed decisions, potentially saving them significant amounts on repair costs.
There are 70 million vehicle breakdowns each year and ~80% of cars on the road today have no breakdown protection. A transmission repair could cost you up to $5,000. All plans on Chaiz come with deductibles of only $100.
At the same time, car repair costs have skyrocketed, with some estimates citing 30-50% higher bills than just two years ago. And, 60% of Americans are unable to afford a $1k car repair bill.
Strong Early Traction
Chaiz has experienced strong growth rates and has established partnerships with well-known brands and communities. For example, a couple of the company’s initial partnerships include a collaboration with FIXD, which makes a car diagnostics sensor, and publishers such as Consumer Affairs.
Automotive Ventures will work closely with the Chaiz team to accelerate market adoption and growth.
Market Potential
Chaiz is poised to revolutionize the $40 billion vehicle service contract industry, which has been long plagued by large call center players that have poor reputations and provide challenging customer experiences.
Unlike traditional providers, Chaiz allows users to get quotes in minutes without submitting a phone number or email address, ensuring privacy and a hassle-free experience. This user-centric approach addresses a critical pain point in the industry, offering transparency and choice to consumers.
By leveraging an online approach, Chaiz eliminates the middlemen typically involved in purchasing warranties through call centers, saving customers 40%.
The market opportunity for Chaiz is significant and poised for dramatic growth. With a dramatically better consumer experience, and offering users transparency and choice, we believe that Chaiz has incredible potential to accelerate growth.
Network Effects
As the company scales, it will benefit from network effects from its proprietary dataset: the more consumers using the marketplace and the more insurance providers participating, the more data Chaiz will collect. This will result in dramatically better consumer experiences, as well as more successful transactions and revenue for the participating insurance providers.
Alignment with Our Investment Thesis
The Chaiz investment aligns with the Automotive Ventures Mobility Fund thesis and our strategic focus areas. The thesis of the fund is to invest in the next wave of innovation in transportation technology. Chaiz operates at the intersection of both the Convenience Economy and the Digitization of Commerce, both of which are investment thesis areas of our first Mobility Fund.
This investment is positioned to take dominant market share, has strong potential for eventual exit, and to drive outsized returns for our investors.
We’re thrilled to be part of Chaiz's journey and are confident that our investment and contribution to the company will not only yield significant returns but also contribute to the company's emergence as the leader in the broader mobility industry. We look forward to collaborating closely with the Chaiz team and playing a proactive role along their path to success.
