Lithia Motors and Shift are getting into big data.
The dealership group and e-commerce retailer said Wednesday they have started a national data-sharing partnership, the latest “milestone” in their work together that began in 2018.
They are collaborating to mine lifecycle data sets from U.S. auto transactions.
The thinking is, leveraging Lithia’s transactional data with Shift’s data analysis and machine learning expertise will reap a host of benefits that include improvements in valuation and pricing, the ability to better project customer demand trends and improve both companies’ scaling and network expansion.
“Harnessing big data is the third milestone we’ve achieved together and further leverages the strengths of each organization,” Lithia president and chief executive officer Bryan DeBoer said in a news release.
“This agreement, the previously established flooring facility, and the storage and reconditioning space for Shift within Lithia’s nationwide network paves the way for both Shift and Lithia to grow,” DeBoer said.
Based in San Francisco, Shift provides a digital platform that lets consumers buy and sell cars from their own locations. It is available in California and is said to be one of the Bay Area’s largest used-car retailers.
Shift co-CEO Toby Russell said in a news release, “Lithia’s nationwide coverage of dealerships and rich sales information are an incredibly valuable data set. We are using the knowledge to supplement our existing sources and improve the regional accuracy of our buy and sell prices as we expand to new markets.”
With its $54 million investment, Lithia led the $140 million round of Series D financing in Shift that was announced in September. Lithia and Shift also formed a strategic partnership, which continues to grow.