PartsTrader announced in a press release in New Zealand that it has "entered the U.S. market with a locked-in five year agreement."
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Although it does not reveal its insurance partner as State Farm in the June 22 release, the two companies have partnered on a new parts purchasing program for State Farm's Select Service shops that's now in place in four U.S. markets
PartsTrader CEO Rob Cooper was quoted saying, "If successful the business will generate a healthy profit and most of it will flow back to our (New Zealand) investors.
Here is the unedited release:
A New Zealand technology company has fended off an international field of contenders to win a contract to supply one of the largest auto insurers in the US with a web-based marketplace for car parts.
Wellington-based PartsTrader Markets Ltd has just completed a four state pilot of its online trading platform in America¹s $US10 billion-a-year collision repairs auto parts market.
PartsTrader is an online tendering system that allows automotive trade buyers to find parts for vehicle repairs, arising primarily but not exclusively from insurance claims. Last year in New Zealand vehicle parts valued at more than $70 million were obtained through the PartsTrader, a technology platform used by most of the major insurers and some 80% of collision repair shops.
The company has won a contract with a major US insurer to establish and run an internet market for vehicle parts in the US. The market is modelled on the platform PartsTrader Markets that has operated in New Zealand since 2004.
PartsTrader US LLC Chief Executive Rob Cooper says the contract is a major coup for the Zealand technology sector and if successful will lead to the creation of new jobs.
"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 focused 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 NZ investors."
The shareholders in PartsTrader Markets Ltd (PML) are Todd Technologies, a subsidiary of the Todd Corporation; PML founders and internet investors, Colin and Rosie Bevan; the Grimseys Family Trust; and shareholders associated with the leading New Zealand software service provider, Intergen Ltd.
Rob Cooper says there was intense competition for the contract to provide the online marketplace for the US insurer.
"The cornerstone insurer carried out an exhaustive worldwide search and RFP process for suitable options, before settling on the PartsTrader product and business model.
"We have entered the US market with a locked-in five year agreement. It is an exciting development for our company, but also an exciting step for the New Zealand technology sector generally," Rob Cooper says.
Further information can be found on the website www.ptml.co.nz.