Dive Brief:
- Kroger has partnered with TrueCar to offer the Kroger Auto Buying Program, according to a company press release. Customers get access to TrueCar's pricing information as well as guaranteed savings on new car purchases and discounts on used car purchases, according to the companies. The program will be open to customers who shop at Kroger, Fred Meyer, King Soopers, Dillons, QFC, Ralphs and Smith's.
- The new program provides access to over 16,500 TrueCar Certified Dealers and information regarding what other people paid for the vehicles. It will also offer machine learning-backed price ratings on used vehicles.
- People who purchase a vehicle through the program receive a free Fuel VIP Membership, allowing them to earn an extra fuel point for every dollar spent.
Dive Insight:
As it competes with retailers like Costco and Amazon that offer added perks for members, Kroger is dangling more services for its customers.
TrueCar describes itself as an information and technology platform that provides users with access to TrueCar Certified Dealers, serving as a middleman between car sellers and car buyers to make the deal fairer and claiming to provide a negotiation-free experience.
Although car sales are declining in the U.S., consumers are using third-party auto services like TrueCar and CarMax to research their options and make purchases.
The partnership is the latest addition to Kroger’s alternative profit portfolio, which will add an estimated $100 million in operating profit in 2019, according to the retailer, and $150 million in 2020. Some of the other services include Kroger Personal Finance, Kroger Media, Kroger Precision Marketing and Kroger Customer Data Insights.
Kroger launched its ambitious Restock Kroger program in October 2017 as a plan to turn around the company’s brand image and boost profits. When it comes to these alternative value streams, Kroger plans to add more financial technology and CPG marketing services, as it sees increased disruption and innovation in these areas.
