There are 15 million used cars auctioned annually by various leasing, dealership and insurance companies. Totalling at 350$ billion annual revenue soley in US and EU. But the entire trade landscape has already changed due to customer behaviour, where 80% of discovery for purchase process starts online.

The biggest problem that Used car sellers are experiencing with online auctions is liquidity. Imagine on average 200 fleet cars, same model, same make, same color returned in single day and on average losing 1,200$ from retain costs and price depreciation per day.

 

But even if sellers want to sell-off those cars quickly, they are technically limited with auctioning only on a single marketplace, not getting the best possible match during the trade.

In 2015 AASC (Auto auctioning service corporation) tried to solve the problem and create a shared database for uniting auctioning marketplaces, but the initiative got halted as proposed centralised architecture and governance model creates a high barriers of entry - and makes process coordination very hard.

Centralization is non-scalable: “Associated economic and governance model poses antitrust risks by raising new barriers to entry for smaller industry players.” - *ADESA (premier vehicle auction operator)

High barriers: “AASC has asked Copart to pay discriminatory access fees, including an initiation fee of $50,000 per location. This fee would exceed $6.5 million.” - *COPART (salvage cars auctioneer)

 

In the end system ends up with a single trust entity, who leads the bidding ledger can interfere with the process. Such centralised unification initiatives failed not only here, but on the level of governments with (single ID systems + procurements or healthcare data). - it’s like reversing the internet.


Due to the emergence of blockchain technology now we can rethink the concept and create a distributed grid between market participants, unifying them not by duplicate their processes in central DBs, but enabling to operate P2P without a centralised trust body.

Shelf is a universal technology that enables sellers to upload vehicles at one place, but run and monitor same auction synchronously on all interconnected marketplaces. Expanding their sales: reaching more buyers, getting higher margins.

 

Every competitor on the market is building vertically integrated business around single marketplace and every new city such marketplaces try to scale, they encounter high friction (competing with existing companies in the entire value chain) for that specific location.

 

While shelf is a neutral platform (technology) where each marketplace and participant  has a permission less access to build tailored services around each shared asset. (localised financing or transportation). Making one click cross border purchases a reality.

Shelf.Network is one of the few real world use cases of blockchain technology, that does not have an internal coin, limiting transactions to it. But is a fully compliant ecosystem ready to make difference.

Our prime goal is to build multichannel trade ecosystem for used car auctions among inventory suppliers of: off-lease, off-rent, fleet, repossessed, and re-marketing dealer websites. Ecosystem would easy scale into transnational auctions; as cars, as an asset type already have high liquidity (around 10m units auctioned in US), are traded online, and naturally flow from western markets to eastern world.

Next goal is to diversify by asset types and enter foreclosure market (around 150bn market value in US). Consolidation of sales agents through shelf will offer lenders and local counties universal outsourcing tool, while maintaining the neutrality in appointing the sale agents.

We envision Shelf.Network as a global multi channel platform for collaboration, that allows the creation of auctioning web, based on geography, asset types, where certain group of sellers merchants and buyers can operate in truly global ecosystem of trades. 

Every industry will be disrupted if it’s core business is built on providing limited access to the information

Building distributed auctioning network, that allows to create a shared inventory liquidity among the interconnected marketplaces and empowers sellers to run/monitor the same auction across the network.