Nettbil

About Nettbil

Nettbil AS is a Norwegian company that operates a digital marketplace for the sale of used cars from private individuals to professional dealers. Founded in 2017 by Anders Espelund, Thomas Hage, and Eirik Thorsen, the Oslo-based firm was established to simplify the process of selling a car. The company, which initially operated under the name Carvy, developed an online auction platform where car dealers across Norway can bid on vehicles.

The business model centers on providing a fully managed service for the private seller. This process begins when a car owner registers their vehicle on Nettbil's platform. Nettbil then provides a price estimate and arranges for a vehicle inspection at a partner test center, such as NAF or Viking, where a condition report is prepared and photos are taken. The vehicle is then placed in a digital auction open to Nettbil's network of over 2,000 registered car dealers. This auction format is designed to achieve a market-driven price, with an average of 12 dealers bidding on each car. The seller can follow the bidding process and choose whether to accept the highest offer, with no obligation to sell.

Nettbil's revenue is generated from a commission that is deducted from the final sale price paid by the winning dealer. This fee, which ranges from NOK 5,000 to NOK 20,000 depending on the car's value, covers the costs of inspection, advertising, administration, and, crucially, assuming the post-sale liability (reklamasjonsansvar) from the private seller. This transfer of liability is a key benefit for sellers, offering them a secure and hassle-free transaction. The company's primary clients are private car owners in Norway with vehicles valued over NOK 40,000 who are looking for a quick and simple sale without the complexities of a private transaction.

The company demonstrated significant growth, reporting revenues of NOK 128 million in 2021, up from NOK 67 million in 2020. This trajectory attracted media and investment group Schibsted, which acquired a 67% majority stake in December 2019. The acquisition, however, faced regulatory hurdles from the Norwegian Competition Authority, which was concerned about reduced competition in the online car sales market, given Schibsted's ownership of the leading classifieds site, FINN.no. After a lengthy legal process, the Norwegian Supreme Court ultimately approved the acquisition in February 2023. Following the resolution, in June 2023, the founders announced their departure from the company to pursue new projects, transitioning leadership to Schibsted.