With his young company Boostmi, which borrows a bit from Uber, the former Dragon François Lambert decided to enter CAA-Quebec’s borders, which for a long time monopolized a good part of the roadside assistance market. Quebec. The company reached another level Friday as the businessman was visiting the Quebec City Auto Show to announce a partnership with Alex Tagliani in the Canadian racing series Nascar Pinty’s.
“In 2018, people, especially millennials, want to have an app on their smartphone or tablet. They do not want to look for the phone number of a towing company that covers that territory, to call a trailer to say that they are at the corner of such and such street. With Boostmi, the application detects where the customer is. In addition, there is no subscription to our services. You pay for the use, which is also very popular with millennials who are less likely to hold subscriptions or insurance, “says Lambert.
He and his partner Michael Bibeau launched Boostmi two and a half years ago and the company has been growing since then, growing by 300%, 500% or even 500% a year, according to François Lambert.
“It is calculated that CAA members use the service only once every three to five years on average, while the annual subscription costs between $ 89 and $ 150. “At home, a service costs $ 72,” said Mr. Bibeau. The services offered by Boostmi are, roughly speaking , the same as CAA-Quebec: boosting, towing, changing tires.
François Lambert also points out that in Quebec, seven out of eight drivers do not subscribe to a car club. “We are not at war with the CAA, we want to meet the needs of those who do not like to subscribe to a service. We want to be the global reference for roadside assistance, “he says, noting that his company is now present across Canada and has also just signed an agreement with the Tecnic chain of driving schools.
In addition to doing business with towing companies, only those that are certified and offer quality service, Mr. Lambert insists, Boostmi has drawn on the recipe of the multinational Uber. Individuals with cables or booster devices can register as service providers in addition to registering as customers. When a call is made in the area where they are, they will be solicited to offer the service.
The Boostmi formula allows the company to answer a call within 22 minutes when it comes to “peer-to-peer” services and 38 minutes for business towing services against an average which would be 45 minutes elsewhere in the industry. “For reasons of competition, I will not reveal how many service providers we have, but we have reached a critical mass and the more people we have, the more we can reduce the waiting time,” said François Lambert.
“We are the first in the world to offer these services in a peer-to-peer format. We now have two competitors, both located in the United States, and this is good news because if we were alone, that would mean that there is no market, “concludes the one who estimates 60 billion $ the roadside assistance market in North America.
On the side of CAA-Quebec, the spokesman Pierre-Olivier Fortin said he did not have a bad look at the arrival of this new player in the market. For several years, the CAA had few competitors in roadside assistance besides the Dominion Automobile Association (DAA), a private company that offers similar services on subscription, and similar services offered by some car dealerships.
“Competition is desirable and it’s healthy. It makes everyone try to excel, including us, “said Mr. Fortin, recalling that CAA-Quebec provided services 24 hours a day, seven days a week and that all services were provided by professionals.