A new partnership between New Zealand Media and Entertainment (NZME) and Gumtree Group is set to shake up the $125.3 million automotive listings market in New Zealand. The deal, revealed on Friday, aims to utilise NZME’s media power and Gumtree’s technology to create a fresh competitor to Trade Me.
Ambitious Move into a Highly Competitive Sector
A memorandum of understanding (MoU) outlines the two-phase plan behind NZME’s partnership with Gumtree Group, aimed at exploring and potentially launching a new automotive listings platform.
Michael Boggs, CEO of NZME, explained the strategic direction of the initiative: “With New Zealand’s automotive listings market thought to be worth around $125.3 million in revenue annually and currently dominated by a single player, we see this as an opportunity for NZME to be a strong competitor in this market, securing share to further grow our business.”
Reflecting on NZME’s past success with OneRoof in the real estate sector, Boggs added, “Automotive dealers have been clear with us about the need for a competitive marketplace that offers choice and value.”
Combining Media Reach with Advanced Technology
NZME and Gumtree Group have structured their partnership to harness each other’s strengths. NZME will utilise its extensive media resources, such as newspapers, radio, and digital platforms, to direct audience traffic to the new marketplace, while Gumtree will supply the technical infrastructure, benefiting from its established position in the Australian classifieds sector.
“We will leverage NZME’s substantial audience and omnichannel media reach and Gumtree’s proven technology platform, seeing us deliver a strong alternative to benefit both automotive dealers and consumers,” said NZME CEO Michael Boggs.
Gumtree’s managing director, Tommy Logtenberg, emphasised the market potential, stating, “The partnership with NZME provides an exciting opportunity. There is a significant need for competition in NZ’s online automotive market.”
Implications for Trade Me and the Automotive Sector
The introduction of this new automotive platform is expected to shake up New Zealand’s automotive classifieds market, where Trade Me has long been the dominant player. A successful launch could provide dealers with more competitive advertising rates and a wider reach.
The platform promises enhanced pricing transparency and a broader selection of listings for consumers. The move also signals the potential for more competitive pricing as the sector sees increased competition.
Conclusion
NZME and Gumtree are currently evaluating a prospective partnership, focusing on market feasibility and platform development. The MoU details a phased strategy, enabling both companies to fine-tune their approach prior to a comprehensive launch.