Online car-seller Clutch launches first in-person customer hub

Clutch has opened its first customer hub in Canada in an effort to make its online used-car business more convenient and reliable.

Launched last month in the Cadillac Fairview Markville Shopping Centre in Markham, Ont., the new hub serves as a pickup and delivery point for buyers and sellers, offering a physical touchpoint for the digital-first company that launched in 2017.

Anne French, VP of strategy and business operations at Clutch, tells strategy the company is aiming to build trust among customers aged 25 to 55 who prefer in-person assistance.

“We designed our customer hub with the customer in mind – as a warm and welcoming space to make car buying and selling even easier and more accessible, whether you’re fully digital or prefer a bit of hands-on guidance,” French says. “We want to be closer to our customers, and while our platform remains digital, this is a natural evolution of how we deliver a seamless end-to-end experience.”

The decision to open in Markham was based on Clutch’s strategic research pointing to strong demand in the region. Previous data also showed that 76% of Canadian car buyers wanted to minimize their time visiting dealerships.

French says the hub supports Clutch’s digital strategy and showcases it value proposition as an innovator that differentiates from traditional dealers with features like a 10-day money-back guarantee. The company’s 1,700-plus five-star Google reviews indicate that the company’s business model has resonated, French says, and the hub enhances “the ability to serve [Clutch’s] growing base and the gap between online and in-person customer service.”

“Our physical presence builds upon the strategy and adds one more channel through which customers can interact with us,” she says.

The space’s staff are trained to help facilitate vehicle deliveries and provide personalized guidance on the online car-buying process. In-store computers also allow customers to browse Clutch’s inventory and ask product-related questions.

In March, Clutch opened a 111,000-square-foot vehicle inspection and reconditioning facility in Mississauga, a project that it said created more than 400 jobs in the region.

A month earlier, the company announced it had raised $50-million in financing to push its valuation slightly above its 2021 high of $575-million, according to the Globe and Mail.