Goodhood raises $2.6M to grow onsite car maintenance services

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A Michigan-based car repair tech startup aims to use proceeds from a recent seed funding round to support advanced technology and grow its membership club. 

Founded in 2020, Goodhood is a startup headquartered in Ann Arbor that operates as a subscription-based service sending mechanics to a subscriber’s doorstep. Mechanics handle various repairs right in the driveway, such as oil changes and replacements for batteries, brakes, air filters, spark plugs and other vehicle components. 

The startup recently secured $2.6 million in a seed funding round led by Bullish, an early-stage consumer investment firm based in New York City, and supported by executives such as Marc Randolph, co-founder and the first CEO of Netflix. 

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Prashant Salla, co-founder and CEO of Goodhood, said the funds will be used to create a membership club, boost the platform’s technology and expand the team. 

Prashant Salla
Prashant Salla

“The goal is to build Goodhood Auto Club where members can easily access services anywhere, anytime,” Salla told Crain’s Grand Rapids. “For that, we would need to build a lot of tech. We’re also looking at investing in operations and hiring more on-the-ground mechanics and customer service team members.” 

With the Goodhood Auto Club, Salla said members would pay a yearly fee of roughly $160 and get unlimited free oil changes as needed as well as a 10% discount on other repairs with a designated technician assigned to their car. 

The average time for mechanics to show up after a person makes a service request is 48 hours, according to Salla. The startup operates a network of mechanics — primarily in Wayne, Oakland and Washtenaw counties — that it hopes to expand statewide.

Salla said the idea for Goodhood came after he hired a mechanic from Craigslist to come to his apartment for a car repair a few years ago. Salla learned that the mechanic preferred not to work at a traditional repair shop but to travel to customers’ homes for onsite repairs — a growing preference within the region, he has found. 

“I did a series of interviews with a lot of mechanics in southeast Michigan and found that most mechanics don’t really like to work in a traditional repair shop. They don’t get paid well, and they don’t have flexibility,” Salla said. “Then I did some research on the customer side and found that people don’t like to go to repair shops, either. And it kind of struck me that nobody wants to be at the repair shops — not the mechanics or the customers.” 

Salla — who worked as a mechanic for $100 a month in India in college and moved to the U.S. to pursue a master’s degree in automotive engineering — said he decided to build the Goodhood business model to offer more convenience and transparency. 

In addition to southeast Michigan, Goodhood operates other locations in Dallas, Texas — “our biggest market,” according to Salla — as well as Houston and Phoenix. Salla said the company employs between 20 and 30 technicians among the three states, plus about 10 team members working on the operations side. 

Onsite car maintenance app
Goodhood mechanics handle repairs such as oil changes and replacements for batteries, brakes, air filters, spark plugs and other components. Credit: Courtesy of Goodhood

While Goodhood does not yet service West Michigan, Salla said the region is on the startup’s radar. Grand Rapids, Kentwood, Wyoming and Kalamazoo already have been added to the service areas listed on the startup’s website. 

Going forward, Salla said he plans to expand into new markets and expand the startup’s services to include roadside assistance. The team also is gearing up for a series A round at some point in 2024, he said. 

Goodhood’s latest funding round also drew participation from existing investors Mucker Capital and Okapi Capital; new investors Kubera Venture Capital, New Age Ventures and Impact Ventures; and other executives.

“The entire auto industry — from parts, to OEM, to fuel/power — is undergoing the most significant transformation since (the) Model T, (and) we believe repair and maintenance will be impacted as well,” William Hsu, co-founder and partner at Mucker Capital, said in an email statement to Crain’s. “Goodhood is reimagining a better and higher-trust customer experience for auto repair and maintenance in a world where mobility and technology is ubiquitous.”

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