DriverSide raises $5.3 million

Don't want to risk buying a new car in this economy? DriverSide helps keep your old car running

It’s no doubt the auto industry is failing.  Just a few weeks ago, the price tag to bailout Chrysler and General Motors, jumped to $39 billion, as the automakers asked for $14 billion extra in government aid.  It’s plain and simple, people are not buying cars.  Instead, they are doing everything they can to maintain the ones they already have.   

DriverSide, which is figuring out ways to work with this undeniable fact, has secured $5.3 million in additional funding.  This series B round, led by new investor Allegis Capital with participation from Catamount Ventures, brings the company's total venture capital funding to $8.4 million.

According to a survey conducted by DriverSide and Kelton Research, 82 percent of Americans are holding on to their cars longer than they originally intended.   DriverSide has built its concept around this.  

DriverSide, which is currently in Beta stage, seeks to help car owners.  The service is free and allows a user to easily select which automobile they own and based on that selection, gives information on what the user can do with that car.  DriverSide’s current categories include, Service Your Car, What’s it Worth?, Parts & Accessories, New & Used Autos for Sale, and Sell Your Car (for free).  

A neat feature is DriverSide’s, Pre Service Report.  Here it allows you to select a service such as, Brake Service, and gives you a quote of what you should pay to service your car.  This quote is then based on the model of your vehicle, along with the zip code you live in.  Along with the report, DriverSide provides listings of local mechanics and their contact information.

In addition to the funding news, DriverSide announced a partnership with Integrated Services, makers of the software LubeSoft, which is basically a software based management system for lube shops.  Integrated Services operates in 2,500 locations around the US, according to DriverSide.  

DriverSide, which isn’t exactly profitable yet, will use the funding to invest in expansion of its business services.  The company will invest in creating revenue-generating partnerships with auto-repair shops looking to reach car owners.  

Founded in 2007, DriverSide isn’t the first Web 2.0 auto company raising cash.  Just earlier this year, Zag.com, a provider of online auto sales, raised an outstanding $37.4 million, to innovate the way in which cars are sold in today’s failing auto industry.