GarageWorks started operations in the pre-Covid era in 2017. How much have consumer preferences changed due to the pandemic in terms of two-wheeler service and maintenance?
While doorstep service providers like GarageWorks have been operational since pre-Covid times, doorstep two-wheeler services were majorly explored during the pandemic as a lot of local mechanics were forced to shut shop and provide services/services to customers. Had to come online in search of garage. Nearby. The GarageWorks website saw a 6X jump in monthly website visits since the first lockdown. The initial preference towards the door was due to hygiene factors, however, as the country returns to normal since March/April ’22, it has become more about trust and convenience.
Do you think the growth in demand for aftermarket doorstep service is a temporary push due to the pandemic or is it here to stay? What will customers stick to this method of servicing their two-wheeler?
As mentioned, doorstep is now more about convenience and reliable services. Consumers have realized that doorstep service is the new normal. The convenience of availing many other services at home which was not prevalent in the pre-Covid era is an important factor. The doors are here to stay and be sustainable with the kind of consumer retention we see. We only need to focus on quality of service and customer engagement.
The automobile industry shifted to BS-VI emission norms in April 2020. How has this affected the aftermarket service industry?
The shift to BS-VI has had a significant impact on the ‘independent’ aftermarket industry. Roadside mechanics, who mostly learned to handle the latest models with trial and error mechanisms, are now in BS VI when it comes to doing trial and error. They are more open to exploring opportunities for upskilling on how to handle BS-VI, which was not the case in 2017 when India switched from BS-III to BS-IV (as the technology shift was not that significant).
The inability to handle BS-VI also worries many OEMs as they understand that most owners stop visiting dealer workshops after the free servicing/warranty coverage period. Any improper handling by the local mechanic affects the image of the brand indirectly. Hence, several initiatives are being taken by various stakeholders to ensure that the independent aftermarket is well-versed in handling BSVI.
Overall, BS-VI has brought about a positive change in the rise of the largely unorganized sector, which is the two-wheeler aftermarket. Local mechanics have understood the importance of technology and have begun to recognize that technology is not something they can ultimately sustain without.
GarageWorks raised $1 million in a pre-Series A investment round earlier this year. How are these funds being deployed? Is personnel training getting special attention in view of the changing dynamics in the two wheeler market and introduction of electric two wheelers?
Our focus on fund utilization is technology, geographic expansion and quality of service. With presence in 5 cities and setup work in progress for 3 cities, we plan to provide doorstep services in 25 cities by the end of this year. In terms of service quality, we had our share of learning about how relevant the existing skill development courses for two wheeler technicians are.
We understood that technicians who complete these courses are more recruited as assistant or junior technicians with a starting salary of Rs 6000-7000 per month. We realized that there is a need for something that is more relevant to the technicians and helps them earn better income. So in partnership with Pratham, we introduced the ‘Smart Technician’ certification which trains them to become practical technicians in 90 days.
What are the technology based employability/sustainability challenges for the unorganized workforce? What can be done for the overall development of this industry?
The most fundamental challenge for the unorganized workforce today is connecting and communicating with customers. There has been a significant shift towards digital connectivity and we are experiencing it across sectors. Lack of technology adoption leads to the first loss of customer experience – engagement. Every customer who drops their two wheeler in the garage wants the mechanic to provide timely updates and build transparency through communication, and this is not possible without technology. We strongly believe that whoever embraces technology for engagement will ultimately lead customers to sustainability issues for others.
The second challenge is to keep yourself updated with the latest trends/technology/requirements. We have gone from 2-stroke to BSVI, but the independent aftermarket in the two wheeler industry is still dominated by mom and pop shops running on land parcels or pavement.
Today, there are around 109 different two-wheeler models in the market, including all the variants. A few years ago this was not the case. How many models is the mechanic/garage going to be well versed with? With EVs it will get even more complicated. How would he remember the different parts applied to different models without the aid of technology? The adoption of technology will help them access free video content that can help them upgrade their skills.
As stated before, the ‘independent’ aftermarket is starting to recognize that technology is not something they can eventually sustain without. At GarageWorks we are focused heavily on leveraging technology to disrupt the aftermarket. More than discovery, our focus is on how technology can enable a better customer experience in terms of convenience, transparency and quality. Our mantra is ‘Every two wheeler owner needs to visit the garage for repair, maintenance or some aspect of vehicle management. The one that delivers the best experience will win the customer and technology will play an important role