Belgian body repair federation worried by digital repair platforms
The Belgian car body repair industry (TRAXIO & FEBELCAR) is worried its expertise and quality might be put in jeopardy by the low prices charged by digital online platforms. The news comes only days after the Belgian branch of insurance company AXA together with Fixico announced a new online repair platform.
Platforms like AXA's Fixico or the similar Carfixer enable drivers to upload photos of car body damage and receive quotes. Traxio and Febelcar believe these platforms will push repair prices down up to 30%, which could affect the quality of the repairs.
Traxio and Febelcar point out that AXA appears to be focusing on price in its communication. If car body shops find themselves in a downwards price spiral, their profitability, capacity to invest and in the longer run their survival could be at stake.
"We are suprised by Traxio and Febelcar's reaction," said Derk Roodhuyzen de Vries, founder, Fixico, in a report on Automotive Management. "250 companies have already registered and we haven't received any complaints. We offer body repair shops the possibility to distinguish themselves online, which can be done in terms of pricing but also availability and service."
Mr Roodhuyzen de Vries added that he doesn't understand the quality argument as Fixico only works with shops that follow the federation's guidelines.