RumbleOn is upending the motorcycle market
Just as CarFax did with the market for used Fords, Chevies and Toyotas a few years ago, RumbleOn.com is looking to do something similar for the Harley, Kawasaki and Suzuki market. The online motorcycle middleman, which started in 2013, operates like any used vehicle shop - they buy your bike and then sell it to someone else. The advantage of what they offer, though, is a national presence as well as certain guarantees and, often, free pick up and/or delivery, with an easy interface to filter price, payments, make, model, mileage, and color.
Folks who ride on two wheels are a special breed. It takes guts to open a throttle and race down the road with nothing but leather or fabric and a helmet as protection. The last thing we want to have to worry about it is what condition our bikes are in. So when buying a bike, knowing its providence and history can be a good thing. Conversely, when the time comes, for whatever reason, to let go of a bike, to trade it in for a bigger, family model or downsize to a bike for only city riding, ease of selling is something which can take a bit of the sting away.
At Thinknum, we track used vehicle inventories, which led us to discover RumbleOn's remarkable growth, including a recent spike.
Number of vehicles jumped from 665 on March 2 (where it had been holding steady for a couple of weeks) to 1,128 on March 4.:
And the total dollar value of their listings has skyrocketed, from $8.7 million to $13.3. million.
Marshall Chesrow, CEO and founder, told Thinknum Media, "Nothing newsworthy, just growing." But we have to wonder how much of that sudden jump is part of the company's admittedly excellent organic growth, and how much comes from a one-time event.
Here's a few spotlights on various makes, where RumbleOn has shown the most growth:
So how are they growing so rapidly?
Like Carfax before them, RumbleOn.com is quick to let you know what’s up with the vehicle you’re purchasing. They also offer a comprehensive guarantee that includes a 150 mile/three-day trial ride period. On some bikes, there is an estimated cost to any repairs needed while others simply list the fact the bike is “certified.” The responses to the company on the Better Business Bureau website list nothing but positive reviews (although they only date back to late 2017).
On the buying side, they make you an offer and, if you accept, they come and pick up the vehicle - all done through their app. The degree to which they make both buying and selling hassle-free appears to be a major advantage for sellers
On the flip side, a number of their listings are coming from dealers, many of whom have their own set of contractual stipulations, and since RumbleOn doesn’t own these bikes, the services they offer don’t apply. This means the company is merely using them to bolster their own inventory numbers.