Wellington's PartsTrader Markets Ltd is entering the US, having won a contract with a major insurer to set up an online market for vehicle parts.
It has just completed a pilot of its online trading platform in four US states with State Farm, a platform that's modelled on one that already operates in New Zealand – a tendering system that lets automotive trade buyers to find parts for vehicle repairs, arising primarily from insurance claims.
A US company has been formed, PartsTrader US LLC, and is expected to roll out the technology across the US over the next year, supplying parts to some 10,000 repairers.
Chief executive Rob Cooper said it fended off an international field of contenders in an RFP process to win the five-year deal.
He said America’s collision repairs auto parts market was worth $US10 billion a year, and that in New Zealand, PartsTrader was used by most of the major insurers and 80 percent of collision repair shops.
If successful, the deal will lead to the creation of new jobs, he said.
“All product development is undertaken in Wellington using a highly talented tech team. On current plans the company will require a further 15 staff in New Zealand focussed on product development. We are developing the online marketplace software using the latest web-based technologies to create a highly effective trading platform.
“If successful the business will generate a healthy profit and most of it will flow back to our New Zealand investors.”