In a union billed as a merger of complementary technologies, Lancaster-based software startup AutoOps has joined with Boston-based Steer, which develops and sells customer relationship management software to auto repair shops.
Terms of the transaction were not disclosed, but Steer plans to retain the leaders, employees and office of AutoOps, which makes software for scheduling auto repairs, according to a Steer spokesperson.
“By bringing our functionalities together, we’re providing our shared customers a best-in-class CRM and online scheduler all in one platform,” Steer CEO Parker Swift said in a statement.
The combined company will operate as Steer. It employs about 100 people and counts more than 4,000 repair shops as customers, according to the Steer spokesperson.
The startup: AutoOps was co-founded in 2022 by brothers Steven and Nicholas Fafel, their father, Steve, and friend Dan Dombrowski.
They saw that repair-shop websites were attracting visitors but that the sites featured subpar contact forms, said Steven Fafel, the company’s chief revenue officer.
AutoOps launched its online scheduling software in spring 2023 and grew to about 1,700 customers and 17 employees, said Fafel. “AutoOps was on a rocket ship.”
His father, Steve, focuses on product technology, while Nicholas is head of engineering. Dombrowski is chief technology officer.
They met leaders from Steer at an industry conference last year and noted overlap between the two firms’ customer bases, Steven Fafel said.
Steer, born in 2006 as Mechanics Advisor, has an office in Tulsa, Oklahoma, in addition to its Boston HQ.
What’s the market: There are about 240,000 auto repair shops in the U.S.
The market for specialized CRMs is relatively fierce, with contenders like Autoflow, AutoVitals and Shopgenie.
The platforms argue they can help repair shops streamline operations, make more money and strengthen connections with customers.
It is a case made by Steve Fafel in a statement on the merger between AutoOps and Steer. “Together, we will help automotive businesses increase profits, save time, and give their own customers a consistent and seamless experience,” Fafel said.
The trend: Car owners have long favored dealerships when it comes to repairs and service, a roughly $400 billion industry. However, independent repair shops are gaining ground as costs rise for parts and labor.
In 2023, 33% of car owners said they preferred general repair shops, while 31% preferred dealers, according to a study by Cox Automotive.
It is the first time general shops outperformed dealers, Cox said.
The average price per service visit is up 45% since 2021, according to Cox. Non-dealer shops are slightly cheaper, at an average of $249 per visit, compared to $258 for dealers.
