CLEVELAND — Dealer Tire L.L.C., an independent replacement tire distributor for car dealerships, is investing in SimpleTire L.L.C., an online tire retailer that has developed an e-commerce platform and network of independent tire distributors for the consumer market.
Terms and details of Dealer Tire's investment were not disclosed.
"The business of selling tires continues to evolve," Scott Mueller, partner and CEO of Cleveland-based Dealer Tire, said. "We've built our business by consistently driving innovation in the tire distribution business and by providing automotive dealers with the tools and services they need to be successful selling tires.
"While our core business remains focused on supporting the dealer channel and our OEM customers, our investment in SimpleTire is part of our effort to continue bringing innovation and technology to the tire industry."
Philadelphia-based SimpleTire, founded in 2012 by brothers Andy and Josh Chalofsky and friend Kenny Pratt, links independent tire distributors across the country in an e-commerce network that includes more than 3,000 independent supply points. Large national partners include: Pep Boys – Manny, Moe & Jack; Monro Inc.; and Mavis Discount Tire.
SimpleTire enables consumers to purchase tires online that can be shipped to a service center of their choice. SimpleTire sells tires in all categories, including passenger, light truck, commercial, agriculture, OTR, industrial, ATV, antique and various specialties.
Dealer Tire manages replacement tire and parts programs for more than 20 automotive OEMs in the U.S. and China. It serves more than 10,000 automotive dealerships from 39 distribution centers across the U.S.
"Dealer Tire has built its business by developing an innovative position in the tire industry focusing on the OEM dealer channel," SimpleTire CEO Andy Chalofsky said.
"Likewise, we've built our business by driving innovation in the growing e-commerce channel. We're confident this investment will help both companies, our customers and our suppliers continue to grow and evolve."
"We've developed strong core expertise in logistics, technology, merchandising, marketing and more," Mr. Mueller said.
"We will leverage our expertise and SimpleTire's capabilities to create new opportunities for both companies. And as we move into our second century in the tire business, investments in companies like SimpleTire and Tyrata ensure that we remain an innovative leader in the tire industry's ever-changing landscape."
In February, Dealer Tire announced its investment in tire sensor and data management company Tyrata Inc., which is developing sensor technology to monitor tire treadwear in real time.