In the construction industry, companies often work on a project to project basis. In an event when there is a sizable time gap between projects, the equipment lies idle making the construction firm lose hundreds of thousands of dollars in revenue. Yard Club, an online platform helps to solve this problem and is the construction industry’s answer to Uber & Airbnb.
Yard Club was founded in San Francisco area by current CEO, Colin Evran, in 2013. The startup primarily deals in helping contractors rent out idle equipment to other contractors which helps immensely in boosting revenue in between projects for contractors and construction firms.
Yard Club has been growing and consolidating itself as an online construction equipment rental platform steadily. The platform handled $120 million worth of equipment rental transactions in the past year for the North American Region, as stated on the website.
This construction equipment sharing economy is growing fast and Yard Club already has a number of competitors like Getable, Dozr and Equipment Share. However, after acquisition by Caterpillar, Yard Club will definitely hold an advantage over the others.
Yard Club Acquired by Caterpillar:
Caterpillar, the construction equipment manufacturing giant, has recently acquired Yard Club for an undisclosed amount. The acquisition was first announced by the CEO of Yard Club, Mr. Evran. After two years of investing in this startup and even providing some of its own machinery to the online marketplace, Caterpillar finally took the leap and brought Yard Club into its fold.
Yard Club’s acquisition by Caterpillar comes at a time when Yard Club has transformed from just being an online platform for facilitating construction equipment rentals between contractors to being a full-fledged equipment inventory management service. Having added a Fleet Utilization dashboard, Yard Club can now be used by contractors to keep track of their inventory, facilitate real-time communication between the job site and offices, get automated reports on inspection and maintenance, and store data related to the equipment’s performance on the SaaS platform.
New technology is already disrupting a lot of industries by providing alternate and sustainable ways of gaining access to the things one firm might need for usage momentarily. Caterpillar and other similar construction equipment manufacturers are definitely going to see their sales figures go south because of industry disruptions like these, so buying the tech from where this disruption is originating from, is definitely a very sound decision from Caterpillar. Changes often make big organizations stagnate and force them towards an abrupt closure so it’s better for firms like Caterpillar to stay with the pack and embrace the changes as it marks a new road ahead for the future.