Partnership eyes new listings site for NZ
A new online marketplace for cars may soon hit New Zealand after NZME Ltd announced the signing of a memorandum of understanding with Gumtree Group, a division of Gumtree Australia Markets Ltd.
Gumtree is one of Australia’s leading classifieds businesses and a statement to the NZX on May 9 says the companies have made the deal to “explore the development of a competing digital marketplace in New Zealand’s lucrative automotive market”.
Michael Boggs, NZME’s chief executive officer, adds: “With New Zealand’s automotive listings market thought to be worth around $125.3 million in revenue annually and currently dominated by a single player, we see this as an opportunity for NZME to be a strong competitor in this market, securing share to further grow our business.
“Automotive dealers have been clear with us about the need for a competitive marketplace that offers choice and value and our success in doing that with our OneRoof real estate platform demonstrates our ability to compete strongly in well-established markets.
“As the owner of well-known automotive brands Gumtree Cars [pictured], Carsguide and Autotrader, Gumtree approached NZME last year, following an introduction by NZME shareholder Roger Colman, with a compelling proposal to build an automotive marketplace.
“The marketplace would leverage NZME’s substantial audience and omnichannel media reach and Gumtree’s proven technology platform, seeing us deliver a strong alternative to benefit both automotive dealers and consumers.”
The two companies have also entered into a content-sharing partnership and the arrangement also allows for reselling Gumtree’s digital advertising inventory to New Zealand audiences through NZME’s multi-platform offering.
Tommy Logtenberg, Gumtree Group managing director, says the partnership provides an opportunity as “there is a significant need for competition in New Zealand’s online automotive market leveraging Gumtree’s technology and capability”.
The memorandum of understanding outlines a two-phased approach to evaluate and then potentially launch a new venture.
Boggs notes that exploring the possibility of a new automotive marketplace in New Zealand aligns with NZME's strategic direction after the success and growth of its property platform, OneRoof.
“As one of the largest marketplaces for classified advertising, the automotive market represents a significant opportunity.
“We're excited to further build on our proven success with OneRoof by exploring verticals that create value for shareholders and serve the needs of consumers.”
