I think we're good here. Well, good afternoon, everybody. Welcome to ACV's Analyst Day. My name's Tim Fox. For those of you I've met, I run investor relations here at ACV for the past 10 months, but it's been a fun 10 months. On behalf of the entire executive team here, I'd like to thank you for joining us, especially live with no masks. This is, it's great to be back in New York and live from New York. We've got a great agenda here planned out for the next few hours. Our CEO, George Chamoun, is gonna walk through the attractive market opportunities that we have in front of us in our expanding product portfolio.
Mike Waterman and Kate Clegg are gonna share how ACV is taking our products and services to market through a proven playbook to help drive long-term growth. Our COO, Vikas Mehta, is gonna host a tech panel. It's gonna be the bulk of the show today with some leaders from ACV are gonna show you some amazing technology the team's been working on delivering and plan to roll out going forward. From there, Bill will take us through the details of our business model. We obviously shared some long-term targets with you recently. We're gonna have a fairly detailed path to achieve those targets. Then we'll end with a Q&A session. We are gonna do a break after the tech panel and before Bill.
Lastly, I understand there's some power that's out on some of the tables. The team here is working on that. Before I turn it over to George, I wanna run through a little video that describes. Actually, I've gotta do the legal thing first. Sorry. We will be making forward-looking statements, and we're also gonna be discussing GAAP and non-GAAP financial measures. You can find this information, and the reconciliation for GAAP to non-GAAP in our SEC filings as well in today's presentation. Now before I turn it over to George, we have a video showing how ACV was conceived, the mission around the company, and how we plan to transform the automotive industry.
Used vehicles are extremely complex. Each and every vehicle has its own story and its own imperfections.
There is demand for every type of used vehicle. There are over 50,000 automotive dealers in the U.S. who sell nearly 30 million used vehicles each year. It's a massive industry. Dealers needed a better way to buy and sell used vehicles, and we decided to change the way used cars are bought and sold forever. ACV was imagined by a dealer, and we enable dealers to compete in today's digital world. My name is George Chamoun. I am the CEO of ACV. Our mission is to build and enable the most trusted and efficient digital marketplaces for buying and selling used vehicles with transparency and comprehensive data that was previously unimaginable. Join us on our journey.
Thanks. I'm so happy to have you all here today.
We thought it'd be a fun way to start with the IPO because
Folks like Brian Hirsch when we were private, you know, doing this mission. I think this just clicked in. If any of you had met us, you know, five years ago, we told this ACV vision and story, and the thought is, let's always keep going back to why are we here, where we're going. Really thrilled to have you all here today. Appreciate you all taking the time. It's so nice to have us all back and spending time in person. I'll give you all a little bit of why we wanted to do this. Bob and a few other investors here came to Buffalo, I don't know, about a month or so ago. I can't remember exactly when.
We had folks in town and actually some of the folks. I'm looking at some faces here in the room. A couple of folks here in the room came to Buffalo and spent, you know, half the day with our technology team and really spent some time getting to know ACV. When you think about our objective for today, it wasn't just for me to get up here and like, you know, you're all gonna see me, right, pretty often. Really to meet my amazing team, meet some of my leaders, hear them really talk about what we're building, where we're going, and why we're gonna win, you know, the market we're going after. That's our goal. Again, thanks so much for joining us. As you all know, we operate in this massive industry. It's complex.
You know, there's a lot of players in this market. I'm sure for all of you know, trying to understand the market every single day, it's okay, what's happening next? It's more in the news than ever, but the biggest thing to, I think, take away, it's highly complicated, highly fragmented. With that, used vehicles, each one having its own story, each one having its own imperfections. It allows us to really try to, better than anybody else in the world, understand the value of every single asset. Our mission is to build the most trusted way to understand the value and asset by building the platform, the technology, and scale the teams required. That's really when you look at the ACV, the actual cash value, that's what we're here to deliver.
First, before we talk about the future, what an incredible journey it's been. We generated $1 million in revenue in 2016. Five years later, we achieved over $350 million in revenue and $8 billion in GMV in our marketplace. We delivered significant growth in the consumer source segment, which we'll talk about today. You'll see Kate and others dive deeper on the consumer source segment. We achieved nationwide territory coverage, and we also expanded our data offerings with some key acquisitions. With approximately $14 billion spent on fees and services in the U.S., we have a significant untapped opportunity. The majority of our current share is what we're starting to call today, retail dealer wholesale market. We're separating that from the consumer source dealer wholesale market, helping us all think about the different channels.
When we say retail dealer wholesale market, we took a panel of over 1,000 franchise dealers and some independent dealers, and we looked at how many cars they're retailing versus wholesaling to help us come up with that number. Consumer source, we looked at peer-to-peer in other areas, and we believe that market's changing, and we said, if a significant portion of that, let's say around half, gets bought by a dealer versus a consumer, how does that add and actually create the entire dealer wholesale category? Commercial wholesale is going to continue to change as well, whether it be off lease, off rental, repos, fleet with our company-owned cars. This category, every single category, you're going to see digital have a massive impact.
We're earlier in our cycle on commercial compared to some of these other areas, but the platform we're building, the things we're learning will help us grow into commercial over the next few years. SaaS and data services. When you look at dealers and commercial companies, they need data, they need platforms, they need tools. When you look at both, you know, dealers and commercial accounts, they're spending around $1 billion a year in the U.S. on data services, you know, tools, et cetera. Those are, let's call them, those are really the more immediate opportunities. Longer term, we'll start to look at international, and you'll start to see our marketplace grow beyond used cars to all things that moves. That's the way we look at the ACV opportunity.
Let's start getting into some of the data by looking at 2021 and really the best way we think about 2021 is it was a year of two crosscurrents. One, the unprecedented times. New vehicle production, as you all know, had significant issues, COVID and other related issues. The number of new cars being delivered had a significant impact on retail sales, which then had a significant impact on trades. Consumer trades in 2021, meaning the number of cars being traded into a dealer, was significantly lower. Dealers had to keep more of this inventory. When you don't have anything to sell, you need to keep something. The supply picture for 2021 was obviously very challenged. We believe by the end of 2022 it's going to get significantly better. We're starting to see very small early signs of positivity.
We've got small pockets of dealers across the country where new cars are starting to show up. That gives us a lot of confidence standing up in front of you all going, "I can see the world starting to change, even though it's a little early." I think what we're articulating by the back half of this year, and I'm sure many of you are hearing this from other research and other things you're seeing out there. That could be a nice tailwind for us. When you look at last year, the lack of new inventory created a massive shortage of vehicles, which obviously increased the price of used cars. The tailwind on price, which led to higher ARPU, was positive for us. The challenges were for a dealer, what is the value of a vehicle, right?
They had that same challenge all last year, but with obviously massive consumer demand. This year, we believe the importance of our platform could be even more significant because these used car values are going to start to slowly decline. You're not going to just be able to look at your data to understand the value, because what that car or a similar car sold for for last month may not be what it's going to sell for this month. We believe the power of our platform is going to help our dealers understand the ACV, the actual cash value. We think just when you look at these crosscurrents happening and how that positions, another way to look at it is last year it was easier to sell a wholesale car. It's going to get a little harder, and we think that's a good thing for ACV.
You got these two crosscurrents. As far as we're concerned, we executed extremely well last year and we continue to gain share. The dealer wholesale market grew modestly, about 5%. We delivered 43% unit growth. That implies a 38% year-over-year growth. Incredible growth. Testament to not only the value we're providing to our dealers, but the incredible team we're building. With that as a backdrop, why are we winning? Why will we continue to win? I like being consistent. During IPO, and some of the folks are smiling here because they've seen me say that for 5+ years. You know, why are you gonna win? Really, from day one, I've been talking about the power of a marketplace and data services. That the two combined will create these self-reinforcing network effects that will be truly differentiated.
Growing the number of buyers and sellers on the platform creates greater liquidity and ultimately a better experience, which in turn drives greater scale for our business model. The amount of scale also creates more and more data insights. The data insights allow us to have the fuel for new product development. As you're hearing my team talk today, we're gonna go through, you know, I think you're hearing a little bit more tech than you do at a typical analyst day. This is really the key thing I'm having you all to really zone in on here is what could data mean? What could granular data mean? What could structured data mean for this industry? What could it mean for the consumer trying to trade in their car at a dealership? What could it mean for a dealer? What could it mean for a commercial account?
Let's dive into that a little bit. Our SaaS and data services help dealers appraise, buy, and sell vehicles. This informs them whether they should retail or wholesale a vehicle. To complement our Live Appraisal offering, we recently announced a consumer trade widget and a self-inspection app where consumers can appraise their own vehicle themselves. Those were two recent acquisitions. Private Marketplace enables large dealers to take their inventory and before deciding to wholesale it, make sure their group doesn't need that car. It's really important. You're going to see one of the videos today played by one of the largest dealer groups in the country on why Private Marketplace is important to them. Programmatic buying is enabling us now to have persistent demand.
Not just demand during a 20-minute auction, but we now are starting to understand what dealers are willing to pay for a car before we even run the auction. Of course, that's going to help us sell more cars, but think about the payback, going back and helping us from a data perspective. Our innovation continues and our moat is continually, from our perspective, a differentiated moat is being built. My teammates will do a deeper dive on products and go-to-market. I want to just highlight a little bit from a consumer perspective. I know a lot of you are keen, you know, on our thoughts from a consumer perspective and where do we fit in the ecosystem. Dealers are the largest advertisers in every DMA. They need the tools to appraise.
They need the tools to create transparency because consumers want transparency. Consumers want a seamless way to transact. Consumers want to know what the value of their vehicles are. We, with our full range of services now, will enable consistency of whether the consumer's at the dealership or at their home. Now, if any one of you, it'll take us a few more months here to get this, you know, across the whole country. If any one of you want to go to a franchise dealer and say, "Okay, I go to their website, what's the value of my car? I go to their store, what's the value of my car?" We will have the platform to help these dealers compete. Whether they want to market a Live Appraisal, you'll see some of that today.
They want to market a self-inspection app, we'll have that. The tools these dealers need to win, we will have it. We are their partner, we are their enabler, and we like that position. Our core marketplace then, when you think about our backstock, what do we have in addition to these tools? It's we've got this core marketplace, the strength of knowing what these assets are going to sell for. We've got inspectors who are highly trained, that can either show up at a dealership or at the consumer's home if our dealer needs them to go there. That is a very unique position and I feel incredible about our opportunity to win with this as the backdrop. Today, we structured today around three pillars, the same three pillars I talk about every earnings call.
One, driving growth or taking share and how we believe this industry transforms to digital. Second, leveraging innovation to grow our competitive moat. Third, to drive scale with a proven business model, and we believe proven unit economics that will allow us to hit the goals we've laid out for you all. Bill will go through that in more granularity than we have in the past. By executing on these three pillars, we plan to deliver over $1 billion in revenue and $325 million in EBITDA by 2026. Why do I feel good about that? If you look at our last five years, I'm sure a couple of folks said, "Well, that seems a little ambitious." All right.
When you've got just a direct path, and you feel really good about where you're going. I feel we're in a great spot over the next 5 years to have the same significant growth, the same opportunity to go out there and transform this marketplace. With that, we plan to drive significant shareholder value. Before turning it over to Mike and Kate, we wanted to bring back again, for sake of consistency, hear the ACV vision and mission through one of our dealers' own interpretation. A couple of us were just talking in the hallway about how this each time you go in, you're starting to realize how fragmented and challenged this marketplace. I was just having this conversation with two of you all in the hallway. I think it's so helpful because we're all looking at it.
There's all these different moves, all these, you know, recent acquisitions, all this stuff going on, right? Key in on Bob Tasca's words here because he owns dealerships in Rhode Island, he owns dealerships in Chicago, he owns dealerships in Florida. He's been doing this for a long time. Key in on how he describes the ACV value proposition. My team will go through, present a lot of great stuff. Towards the end, I'll be back up here for Q&A and really look forward to spending the time with you all in the Q&A. The most excited about is for us to spend a little social time. All right? With that, let's hear from Bob.
ACV has taken an old model that's totally archaic, and they're bringing it into the twenty-first century, putting the dealers and the customers in control. Now we're able to bid on all makes and models all over the country and ship them conveniently to a dealership of our choice. It's been a game-changing event, and for us, it's been a real win-win. I think one of the best parts of ACV is the transparency. In some cases, you're buying $100,000 cars online, and you're making big decisions based on the information that they're presenting. I can tell you that we bid with confidence that the way the vehicle is represented by ACV is what we're going to see at the door. You know, when you look at our whole group, it's become an integral part of our success.
I mean, we buy over 100 cars a month on ACV, and we're selling over 300 cars a month on ACV. They just got great technology. You want to see the undercarriage, you see a complete scan of it. You want to hear what the motor sounds like, you press a button, and you can hear the engine. They keep enhancing the technology, and one of their latest versions is the filters, so we can really tailor the vehicles that we're looking at, the mileage, the year, the area that we want to buy in, and the vehicles just pop up. It's so easy. It's so intuitive. You can log in literally at night while you're in bed. It's a long-term relationship that we can really build and grow, and you know, we're fortunate to have them in our group and looking forward to great things ahead.
All right. Mike Waterman.
Good afternoon, everybody. Great to see everybody. Great to be here. As George said, and Tim mentioned, in one room with no masks. I'm going to share some stuff with you about our growth over the last few years. My name again is Mike Waterman. I'm fortunate enough to be the Chief Sales Officer here at ACV and handle pretty much all of our sales and field organizations. I've been here close to six years, after spending 25 years. I know I'm dating myself now, and all of you are probably thinking I had to start when I was 12, and that's about right. The best part is 25 years in the industry on all sides. I've been very fortunate.
I started in retail, ran dealer groups early part of my career, transitioned into the wholesale side, was fortunate enough to start a company with some other dealer partners called DealerWire that was in the inventory management space that was eventually acquired by Dealertrack, which is now a Cox company, as a lot of you probably know. From there, when the phone call came from a fellow named George Chamoun, I was very impressed with the people, number one. Obviously, when you go into a situation like this, the people are very important. The platform, the product was very good.
I've been fortunate to be part of this journey from a handful of people around a plastic table in an incubator in Buffalo to where we are today, which is close to over, I should say, roughly about 1,100 teammates in our organization. When you look at the makeup of that, a lot of that, the customer-facing side really consists of, you know, our vehicle condition inspectors and our sales operations people. Our philosophy is very, very simple. It's all about hiring the best talent and giving them, you know, the products and the support to be successful. I'm fortunate enough to have an extremely experienced team, all of which have proven success across all areas of automotive and technology.
Really, really good mix of retail, wholesale, and software. Our talented team, you know, every day they deliver what we consider and we're proud to say, really a best-in-class experience for our dealer partners. Our go-to-market, you know, automotive is a big space, right? There's roughly about 50,000 dealerships when you look at things from franchise dealerships, independent dealerships, and you have in there a lot of these major groups that are getting bigger, right? Every day, every week, you hear about more acquisitions of these groups acquiring these regional, you know, local dealerships. Our direct sales, you know, that org really focuses on that supply side and dealer acquisition.
The goal there is to get in and grow that wallet share in our existing partners over time. Again, our nationwide vehicle inspection team is also on the front lines every day working with our dealer partners. Our VCIs, they really serve, you know, as an extension of dealer engagement, right? Customer success. They're really partners because it's all about helping them get that vehicle sold, right? They really become an intricate part of the dealer's everyday business. Our inside sales org, they partner with the marketing team to really focus on that buy side to make sure we have that demand to meet the dealer's need when they have inventory that they wanna sell.
You know, the independents, they do represent a big part of our product and our platform. They serve about 80% of our buy-side activity today. But what's really interesting is, as George mentioned, these acquisitions and these things that we're building can become really an end-to-end solution for a lot of our dealer partners. In doing so, we're really giving our team multiple at-bats in every rooftop every day. It's just not about going in and talking about wholesale anymore, which is really important. Let's talk about our model, right? How did we get here? And it's really a proven strategy that we've developed, and it's all a land and expand kind of model, and it really is a ground game. The automotive industry, as a lot of you know, is a big relation.
Relationships are a big part of the industry. When we enter a new territory, we'll try and find, again, the best talent, right? Hire those folks, and then we'll bring on multiple vehicle inspectors. It's all about building up that marketplace, getting that buy side, that sell side in place, so we can start conducting business as soon as possible. From there, we really focus on gaining more and more wallet share in each one of those rooftops as they come aboard. Now let's dig into a little bit on how we've expanded over six years. It's hard to believe. We had a great year, 2021. We ended with nationwide coverage, which was a big goal of ours, you know, coming out of the pandemic. Well, we're not out of it yet.
I don't wanna get myself in trouble. Again, after launching in 2015, you could see. We'll have some great graphs and some maps, kind of give you a feel. I think when you look at it this way, it really puts it into perspective, the journey that we've been on, and it's been a lot of fun. It's been a lot of work, but it's been a lot of fun. You know, in 2015, launching in our backyard, you all know we started in Buffalo. We began, you know, to look, where are we gonna go next? We went into the Northeast region, a little bit in Jersey, you know, a little bit more into eastern New York and outside of that greater New York area.
As we started to really ramp up, 2017 was an extremely busy year for us. We went out of the Northeast. We expanded into several new regions. When I mention a region, keep in mind that consists of, for us, eight to nine territories. You have eight to nine territories, and you have those vehicle inspectors underneath there, so it's a lot of people, right? It's not easy to build out a region, right? It's a lot of territories involved. You could see we cast it a little bit further south. That year, we went into the tip of Florida and filled the markets in between. It really helped us understand 'cause, you know, as a startup, you're always looking to understand that go-to-market.
You can't go in with one set of blueprints early on. You have to be nimble, and you have to listen to your customers. You have to understand what that marketplace is gonna allow you to do. So what we were able to do is come up with a strategy with instead of just adjacent markets, let's go a little bit further. Let's cast the rod out, and then we'll fill in between. We'll squeeze in that gap from both sides. It really proved successful for us. As we got into 2018, again, we made that first long cast down into Texas, the Panhandle areas, and the big part, always, you know, focusing on what we have behind, right? You don't wanna get ahead of your skis, right?
As you're looking to expand, you have to commit to those areas that you're already in. As we started to go further, in 2019, we had a huge year of expansion here as well. You can see we did another long cast, and we went into the West Coast into California, the Rockies and the Pacific Northwest. As everyone knows, you know, in 2020, COVID, you know, slowed our progress a little bit, as we hit the pause button on expansion. We were very lucky. We were one of the very lucky ones. We were able to continue to really mature markets in volume, and most importantly, in rooftop engagement. Both our volume and our client base continued to increase.
It really set us up for 2021, which we were able to get back to, you know, our aggressive growth, ramping up, and opening up, you know, our expansion in a big way again. Even though the industry was, you know, facing, as George mentioned, a lot of these supply issues and challenges that were out there, we were able to invest really in the long game, knowing that this market will rebound. It's not an if, it's a when, and everybody has their best guesses, right? Who's ever right, they'll win. But the good thing is we were able to complete our nationwide footprint, which was very, very important to us. We added teammates into mature territories that we started to see that rooftop count, the volume and, you know, splitting territories 'cause we...
The one thing we don't wanna lose is, as I mentioned very early on, the relationship is a big part of our success. As these territories get bigger, and these territory managers get spread a little thin, you bring more in, right? We can maintain that high touch, high relationship engagement in the field. Let's take a deeper dive. I'm gonna share with you, and I'll add a little color in here, and I promise not too much, Bill and George. But, you know, 'cause these are fun.
I tell you, one of the first, as we started to expand, New Jersey is very close to my heart 'cause that was kind of our first. You know, we're gonna come out of New York and having a lot of industry friends, having a lot of friends and colleagues that work at competitors, when we made the announcement, the press releases went out, my phone blew up. I had so many good friends that were just trying to be good friends to try and deter us from, "You really don't want to go into New Jersey, Mike. You know, and I'm calling you as a friend. You know, it has nothing to do with business. You know, we have a lot of auctions there, big auctions. You guys, we're gonna crush you." Of course, you know, I appreciate that.
Just trying to be good friends. As you can see, this is New Jersey, and we started with one territory in New Jersey. One territory manager, three inspectors, and that was back in 2017. Today, we have five territories in New Jersey. We have over 80 inspectors, and this slide just represents one of those current territories, which did over 12,000 units. The calm persistence in the way that we move about the country is a very, very big part of our success. As we start to look at, you know, how do we duplicate that, right? New Jersey was a great success. As we get down into Florida, right? Florida is a big wholesale market. Think about Florida is just a major metro, you know, lots of wholesalers, lots of physical auctions, lots of competition, right?
I remember getting those same phone calls from my Florida pals. "Hey, you really don't want to come down here. You guys got lucky in New Jersey. You don't want to come to Florida." Well, we started with one, right? You're seeing here Miami, a great territory for us. Has done extremely well. Miami started as one. We had Florida. It was basically a territory, and that was Miami, Fort Lauderdale, West Palm Beach. We have 1 territory manager. Well, those are all now three markets, all thriving very, very well. Florida as a whole, we now have 12 territories in Florida. Florida is its own region for us. When you start to think about, okay, this was not too long ago, just a couple years ago. The growth has been exciting.
If you start to look at some of these slides, you'll notice down at the bottom, you'll see franchise rooftop penetration. You see wallet share. I'm just trying to give you an idea of how we get there, because all of these markets are a little bit different. You know, when we talked about it's a ground game and calm persistence and how important that is, when you go into whether it's a metro market, you know, New York City, the boroughs, Long Island, which we're in all of those as well, we're crushing it here too. But you get into some of the smaller markets or the suburbs, it's all about understanding the market you're going into. When I mention hire really good people, if you hire really good people, they're gonna know that market probably better than I am.
I'm okay with that. I don't wanna be the smartest guy in the room ever. You get those people in, and they usually come with a great Rolodex, and what are they gonna do? They're gonna hire great people as their inspectors. Having that type of model and having that flexibility, you may go in, and we may do well in a market because we got two of the major groups in that market. It may be a collection of 20-30 single point source. You know, that traditionally didn't get great numbers at the auction that we're able to service. Having that flexibility in how we get there is really important.
Being able to service and take care of each side of that kind of the marketplace, the big, the medium, the small type of dealers, is a very important thing, you know, for us to be able to go forward and just keep gaining that rooftop share and that market penetration. Detroit, very similar. You know, big market. You know, a lot of big players, a lot of auctions in Michigan. But same thing. We had the same type of success when we went in. Detroit is now five territories around that greater Detroit area. This is a... I love these. Rio Grande, right? Tumbleweeds and wind. We joke about it. Who's ever been in this area, El Paso, Texas? Not a lot, right? 6,000 units last year. I mean, that's incredible, right?
When you start to think about how is that possible? The dealers, there's not that many dealers out there. As I mentioned before, this is what we consider those suburban markets, right? They're not necessarily, you know, a major focus for some of our competition. These secondary markets can be extremely viable for us. What's most interesting is there's not a lot of physical auctions there. For these dealers, you know, their past experience was they gotta ship cars a long way. They gotta drive to those auctions. Not only are they taking their assets and shipping them, you know, a few hundred miles away, but they gotta take the time to go there, and they may not have any success. For us to be able to go in, and the fact is, these are usually smaller dealers.
All of you know, at a physical auction, there's only so many lanes that run so long throughout the day. I may reference what I call a lane. That's that first lane when you walk in the door at every physical auction that you'll see every big group or every fleet will start running about a half an hour before the auction officially starts, and they'll be all the bidders. That lane gets amazing attention. Whoever runs in that lane gets the benefit of that attention, and they get good money for their cars. Well, the same doesn't always happen for the dealer that might only have five cars that week. He's gonna be off in lane seven or eight, and he's gonna run about 1:30 P.M.
You're not gonna do very well that time of day in that lane at an auction. Now we can bring the digital A lane treatment and that exposure to every dealer. When you think about whether it's a metro or a suburb market, it's a huge advantage for us. This one, you know, is calm persistence at its finest. You know, California, huge market, right? We went out there, you know, cast that long cast out. San Bernardino, you know, opened in 2019, right, you know, shortly before COVID hit. It really didn't impact the growth of the territory. Same story here with San Bernardino. It's now three territories. You know, California as a whole, we actually have two full regions that are the majority of the Northern California and Southern California.
There's 16 territories in the state. You know, the long game, it's the same for us. Just calm persistence. It may be a different way in which we get there, the mix of the dealers, you know, the mix of that volume. The playbook that we have and the strategy that we have and the way that we bring people in the platform into a market, it ends the same. You know, we have success. It may take a little bit longer in some cases, but we get there. The last part I wanna talk about is the regional. I mentioned eight or nine territories in each one. The goal here was, you know, obviously expand quickly, but more importantly, I mentioned earlier, don't lose that momentum behind you, right?
How do you constantly go out, open new markets, and continue to gain wallet share behind you? It's not easy. A lot of startups make you know the mistake. Maybe go a little too fast, a little too quick, and they start to lose what they'd started. Our strategy first was to go that adjacent territory. Buffalo, well, Rochester, Syracuse. You know, it makes sense. Binghamton. You ever been to Binghamton? I used to ride around there. I've been to Sayre, Pennsylvania. Anybody been there? It's interesting. Then we started to realize, as we got more of these markets open, it really gave us you know the buyer base, the seller base. When we started to see cars would move 300-400 miles, it's like, you know what?
Maybe we can go a little bit longer, and then we can just build it all in between. Let's take a look at the regional level on how we've been able to do this. You can see we started in the Northeast, as I mentioned, and by the end of 2016 we had a footprint in these three regions. Again, remember, three regions consist of multiple territories, right? As we started to go into 2017, we expanded further north. We got all the way up into, you know, New England. We got Maine, Vermont. We started our march down to the south and started to move our way over to the west. You'll notice the colors, right? This is the percentage of franchise rooftop. The penetration that you start to see.
You notice as this map expands, you'll see some colors get darker. That's that model of let's open and grow behind us, right? It's very important you gotta have the combination of those two things, okay? At the same time we were expanding our footprint, we continued to grow in our home base in New York, the northern New York area, and the surrounding areas. In 2018, we gained really strong momentum while we moved further west into larger markets like Texas. That was another one. You know, I could tell you about the phone calls I used to get. A little more accent when they call me. "Hey, good buddy. You sure you wanna come to Texas?" It was the same friends, you know, being really good friends, trying to warn me.
You don't wanna do that." So as you can see, 2019, we went out to the West Coast, added multiple regions in California, the Pacific Northwest. All great markets we're still. We're really excited about because we're just getting started. You can see that we really started to grow rapidly in Northern California as those colors start to darken. In our earlier regions, you can see over on the right, all started to fill in and darken up, which is really exciting. As I mentioned before, you know, the pandemic, 2020, it was, you know, slowed the expansion, but it didn't stop our growth. You can see, you know, the shades of, you know, get deeper in every one of those regions. In 2021, you know, we finished that nationwide expansion.
We ramped back up adding new markets, and we continued to gain market share behind us. You can see the Northeast, you can start to see Florida, Texas, those areas getting deeper and darker in each one. We've made a lot of progress in adding new dealers to our marketplace, but we have a lot of runway to continue to drive our growth, you know, going forward. The final stage is let's talk about, you know, wallet share. You know, that's that kind of the third piece to our land and expand model. We have a, you know, we have a proven track record here. We leverage that ACV experience when we go into these dealerships to deepen our relationship with these dealers over time.
You know, the value prop becomes clearer with every vehicle sold, and we eventually become the primary wholesale kind of channel for these dealers. They lean on us for both the buy and the sell side. It's about doing that and then just do it again. Rinse and repeat. If you look at the U.S. as a whole, we've tripled our wallet share since 2016. On the right you can see the graph, our wallet share broken into quartiles. In the top quartile, our more mature territories have around 50% of that wallet share on average. That's great progress, but we still have plenty of room to grow, right?
The other quartiles are those less mature markets you saw on those maps as we were expanding south and west, and we have a ton of wallet share still to go after. As you saw in the territory examples, we start out by winning, you know, some initial business and then scale the wallet share over time. Some start with a few single point, as I mentioned. Some go in and have success in the major groups, which I'll talk about here shortly as well. Let's not forget about the buyers, right? A very important piece of our marketplace. Some may say the most important, right? That's always an argument, you know. The growth here, you know, has been very strong over the past five years. We had almost 15,000 buyers in our marketplace at the end of last year.
That's continued to grow through 2021. In the early years, you know, independent dealers were almost 100% of our buyer base. What you gotta understand about that is where we started. You know, the product itself was, you know, Joe and Dan and Jack, when they built this and they won 43North, and Brian, you were around during those days. It was. Their idea was a great one. We're gonna give franchise dealers a tool to real-time pre-sell their trade-ins. What a brilliant idea. Absolutely brilliant idea. Very quickly we saw there's a lot more to this. There's a lot more opportunity here than just that franchise to indie trade-in channel.
As we expanded, right, and we got outside of that cheaper trade-in, you know, your normal consumer trade-in, you know, that $3,000-$6,000 car, we started to get more and more frontline ready, right, that really close to new nice stuff as dealers got more comfortable with the ACV experience, saw the benefit in it. As your inventory matures, guess what? Your buyer base matures. Very quickly, we started to see more and more franchise dealers who were selling cars say, "Hey, I bought four yesterday." Good for you. That's fantastic. What's really great about that is we've seen that expand and now franchise dealers are buying almost 20%. That happened quickly, and we're gonna see that grow even more over the next couple of years.
The best part about that is that adds to our stickiness, as George mentioned, right? Other products, other things, right? Well, now we do a lot on both sides. Our retention just gets better as that relationship expands in every one of these rooftops. I did mention I wanted to talk about the major accounts. Initially, this department did not exist at our company. Over the you know past few years, we had some early success in some regional groups, and we're thinking, you know, this could be something here. We went out over the past few years, and we've added some of the strongest leadership in this area in the sales reps to facilitate and really focus on that top 350 dealer groups in the country.
From the first slide, those 350 make up over 6,000 rooftops. So you think about it's a big chunk, right, of what we consider major accounts, and it's only gonna continue to grow. You know, there are some that say over the next 3-5 years, you won't see a single point franchise dealer anymore. The groups will have bought them all. So everybody will be attached to some sort of group, whether it's 10 stores, 50 stores, 100 stores, whether it's a regional group or a national group, but that seems to be the way this is heading. So one thing that we've done, and it's really paid off well, is providing these large groups with that white glove type of concierge service that they've been accustomed to.
These are the folks that the auctions give all the deals to, give all the attention to. You would think, geez, this is gonna be really hard for us to crack through. Really hasn't. This particular area, you know, providing that white glove treatment, you know, we've had major success here, and there's no pun intended there, in these major groups. We've seen 20% of our volume now come from these major groups. This is where we're seeing some of our largest growth rates with the programmatic buying and these other things that we're doing, both from a product and acquisition standpoint, that are gonna service these major accounts at even higher levels as we go forward. Thank you so much.
I now have the pleasure of turning this over to my friend and colleague, our Chief Marketing Officer, Kate Clegg. She's gonna take you through some of the consumer-facing and other exciting things we have going on. Thank you.
Hello, everyone. Good to see you all. I've met some of you, but not all of you. I'm Kate Clegg. I'm the Chief Marketing Officer for ACV. I've been with ACV for a little over two years now. It's hard to believe. My background, just for reference, I've had B2B and B2C in my background. I joined ACV from Arhaus, which is a leading home furnishings business. There, I led all of their marketing and branding and store sales support. That was, if any of you know that brand, it was a brand that started as a little boutique furniture store and grew to a large national chain, coast to coast, 70 stores, two outlets. It was a lot of fun building that brand over those years. Prior to that, I was with Brulant, which then became Rosetta.
There's kind of a long story here. Brulant was an e-commerce agency. We were then acquired by Rosetta, which was an interactive marketing firm. Publicis, which you all know, likes to gobble everybody up. Publicis then gobbled us up, and we are part of the Publicis family of brands. I've, you know, I've been in high tech, high growth tech. I've been in B2B. I've been in B2C. I've managed through many acquisitions and had a ton of fun just integrating all those brands over time. You know, back here, I'm now back in B2B, and I really believe that the best B2B companies are those that lead with a B2C mindset, so that is the way we lead marketing at ACV.
Today, I'm gonna talk about what ACV is doing to help dealers source consumer inventory. As George outlined earlier, the consumer peer-to-peer market is large. We estimate that the wholesale TAM is over $3 billion. Let's talk about the progress that we're making with helping our dealer partners source inventory directly from consumers through our initial offering, Live Appraisal. Live Appraisal helps dealers appraise and value a consumer's vehicle. ACV leverages our industry-leading inspection, and dealers have real-time access to market pricing by launching that consumer vehicle into our 20-minute auction. I'll break it down how it works. It's pretty simple. The consumer will bring their car into the dealership. One of our amazing ACV inspectors will be on hand to perform that inspection.
That car then immediately gets launched into the marketplace live as a Live Appraisal, and then dealers from across the country start bidding on that car. The final bid is ultimately presented to the consumer, and the consumer has a choice at that point to either accept that bid or not. The process is fully transparent to the customer. This is the most important, and I think differentiating aspect of this. Throughout that entire 20-minute auction, you know, imagine you're the consumer, you have your car there, you're really proud of it, you think it's worth a lot. You get to see all the views from across the country, you know, just rolling in. Then you get to see the bids rolling in, and there's a lot of excitement. You're gonna hear a little bit more from them in a little bit.
you know, the thing that is most powerful about it is that full trust and transparency to the consumer. They get to see exactly where the bids are coming from, and they get to see that it's from dealers across, you know, across the country. Our Live Appraisal program has experienced incredible growth. We have over 3,000 dealers using it today, both to acquire new inventory but also to attract new customers. Last year alone, we transacted over $600 million in GMV just through Live Appraisals. Part of the Live Appraisal offering includes a marketing program, where we help our dealers drive traffic into their dealership through dedicated Live Appraisal events.
Before I get into the details of the marketing, we have a great promo video that we actually created for our dealers to play in their showrooms and share across all their marketing channels. I'll play it here right now.
Whether you're in the market for a new car or simply want to get cash for your car today, try out our Live Appraisal offering. There's no cost to you. All you need to do is bring in your car, and we'll take care of the rest. There are lots of people out there today wanting to purchase your car. But how do you know you're getting the best deal? Live Appraisals are the most trusted way to see what your car is actually worth. Live Appraisals use the nation's leading digital automotive marketplace. With over 16,000 marketplace participants, dealers from across the country will bid on your car through the live 20-minute third-party auction, getting you the best price for your car. At the end of the auction, the choice is yours to accept the final bid. If you accept, the cash is yours.
There's never been a better time to sell your car. Ask your dealer to learn more today.
Pretty simple. Who's ready for a Live Appraisal? We can do it at any dealership near you. Okay, to set the stage a bit, franchise dealers spend $40 billion a year on advertising in their markets. I'm gonna say that again, $40 billion, right? We offer a Live Appraisal marketing program that allows us to tap into that spend that is already happening and already out there. Our job is to arm our dealers with all of the marketing assets that they're gonna need to promote events at their dealership. We've created a comprehensive marketing toolkit. Here's just a few pieces of the creative, just to give you an idea of the branded pieces that we create.
This helps them either stand up an actual event at the dealership or some of these can be used on an evergreen basis. You know, we've given them emails. They can start pre-promoting through their CRM. We've designed a series of digital ads that they can capture. We have these standup banners that can be up in their dealership just for an event, or they can be evergreen throughout the year. We have table tents and flyers. We've designed social media assets. We even wrote the post for them so they can just cut and paste and update it. Actually, we even have written internal comms for the dealers so they can educate their dealership on what's gonna happen. We don't want any sales associates to be surprised by what's gonna happen.
I mean, we have made it as turnkey as possible for them. All they need to do is drop in their dealership information and the time regarding the logistics for the event, and that's literally it. I have to say that the coolest thing about this is we certainly wanted to arm them, right? We're gonna make this super easy for you. Some dealers decide they're gonna co-brand with us because they want their logo and our logo. You'll see some of these assets that would have the ACV logo along with the dealership logo. Other dealers really value that third-party endorsement, the fact that they're not the dealer saying this is the value of the car. There's this third party, ACV, so that was actually a surprise of ours when we first launched the program.
We assumed everybody would want to co-market and have two logos presented at the same time. There's dealers that decide to promote it like this. The best really is, you know, our dealers have personalities, and they are known in their markets. I mean, you all in all of your markets, you can think of the dealers that you know that have the personalities. Those dealers are taking Live Appraisal, and with their own marketing funds, they are promoting Live Appraisal events. They're promoting ACV. They're putting their spin on it, their personality, which is so important to them. I mean, we have so much fun seeing what our dealers are doing and the creativity that they bring to it, and we welcome all varieties. They can go ACV branded, co-branded, or, you know, represent the brand with your own personality.
We love it all. When we talk to dealers and we ask them what do you value most about the Live Appraisal offering, they share the following. It helps us sell more used cars. It helps us acquire new inventory. It helps us sell more new inventory. It brought people to the dealership who might not have otherwise visited, and it helps build awareness for our dealership. We love hearing all of that. Dealers will also recognize the double-digit lift that Live Appraisal is bringing not only to dealership traffic but ultimately to their retail sales. Our mission here is to provide our dealer partners with the best platform and the best marketing support to expand in this category. We are thrilled with the results that we're getting from dealers.
Frankly, we are thrilled any time we can help a dealer win. To close this out, I think our dealer's voice is the most powerful. I'm going to play a little video here that will take you through their experiences with Live Appraisal.
We use the Live Appraisal events as a way to source more cars. When customers are thinking that they're going to be able to get top dollar for their trade, if they had maybe been on the fence about coming in to look at another vehicle, it's usually enough to get them through the door.
We use it for the generation of the traffic.
Live Appraisal has helped us grow our database and brought more customers into our dealerships.
Consumer sourcing for inventory is a smart maneuver because now with all of these other companies that are really trying to gain vehicles from customers, we have to be competitive because if we're not competitive, we're not going to have the units that we can turn around and resell.
Well, on a typical Saturday, you know, we'll trade for 10, 15 cars. The live appraisal event doubles that.
The sales probably increase our overall volume on that day by somewhere between 25% and 40%. Bring your trade-in, I'm going to show you what I'm able to get, and we're going to apply that dollar amount to whatever you're looking to buy. That helps me to create deals without the risk.
It's saving the dealer the possibility of thousands of dollars of overvaluing a car or on the other side, undervaluing a car and not making the deal at all.
Customers all view things that the dealer is trying to steal their car. Hearing from somebody else that this truly is the market value for your car definitely reduces some friction.
It gives that level of transparency that others just don't offer. They get to see the bidding happening in real time right there on the screen, and it's exciting for them.
It was amazing because they were high-fiving. I mean, they're leaning in, they're backing up. It was like, "Wow, I got another $100 for my car." It made it a lot of fun for the day.
ACV Live Appraisal is a must for every dealership. We're not a museum. We're not here to store these cars. We're here to sell them. Any way we can get a customer into us, it's a win-win situation.
I mean, there you have it. Those are the perfect words. With Live Appraisal, MAX Digital, Drivably, and now Monk, you see the powerful solutions that we're putting in place to help our dealers with sourcing consumer inventory. I'm going to wrap up the entire section here, growth strategy that Mike and I have presented to you. You heard about the progress that we're making in growing team members with strong and deep expertise. You've heard about the momentum we're experiencing in our land and expand model. You've heard how we're engaging with larger dealer groups nationwide. And finally, the expansion of our TAM through this consumer sourcing. Really, really appreciate your time today. Thank you so much for coming.
With that, I'm going to pass it on to my dear friend and collaborator, Vikas Mehta, who is going to take you through an amazing innovation session. Thank you all. Sorry about that.
What an exciting day. Good morning, everyone. My name is Vikas Mehta. I'm the Chief Operating Officer at ACV Auctions. For those of you I haven't met before, a little bit about myself. I've basically an engineer by training. I've been in product and tech roles in the Bay Area for the last 20 years, moving from product and tech to ops, general management. More recently, I've spent about a decade at eBay scaling and running some of their international marketplaces. What brought me and drew me to ACV, the team and I will have the pleasure of showcasing to you guys over the next hour or so. What exactly is it? It's an underserved market that was ripe for change and product, tech, and data that's disrupting and leading the way.
I have a strong team of panelists here with me, and we're going to spend the next 45 minutes or so walking you through some of that tech and data we have here. Okay. First, we're going to have a little bit of fun. Shown here is a selection of vehicles that have recently transacted on the ACV platform. As Mike mentioned a few minutes ago, we typically start the journey with the traditional wholesale cars. These two Nissans are classic examples of what we call traditional wholesale. $5,000-$15,000 ASPs. These cars typically get over 50 views on our platform before they transact. Over the last few years, we've been moving more and more upstream, so that's higher ASP cars. We typically call them off-lease, fleet category. These two cars are, again, very good examples of these.
This is a 2018 Tesla Model S, and the one on the bottom is a Mazda CX-5. The Tesla sold for $60,000. Interestingly enough, we sold thousands of EVs last year. Moving up to the next level, these are the really fun cars. That's a 2018 Maserati that sold about a week and a half ago for $250,000 on our platform, had 93 views and 40 bids. That's a Porsche. This one's an interesting one. It sold to a buyer in Sacramento all the way from Miami. Forty-five bids, and it essentially took a 3,040-mile journey with ACV Transportation. The last two categories are what we call our niche categories.
That RV had 96 bids and sold on our platform in 20 minutes. Then if you look at power sports and boats, we sold thousands of them last year. The key takeaway here is we are a platform that serves more than just vehicles. The validation of the breadth of our platform is demonstrated by the selection that we sold today. Our investing and building is very purposefully to capture that growth opportunity in the future. Now a little bit of context setting. As you are undoubtedly familiar, we're digitizing an industry that's basically historically been very opaque and inefficient. The majority of wholesale transactions today still happens physically. These are time-consuming, inefficient, and have an inherently high level of risk. Markets are local, fragmented, and random.
Further, there's both an explicit and an implicit cost of navigating an unpredictable paper-based, buyer beware, high risk, low assurance market. Lack of standardization and assurance leads to a lot of subjectivity and volatility. Which brings me to our mission. Our mission is to transform the wholesale industry. George Chamoun shared this slide a little bit earlier. The core of our mission is really powered through technology and data. Our view is very simple. A trusted and efficient marketplace drives both buyer and seller success. We are reinventing the end-to-end experience, starting from inventory management to marketplace transactions, all the way to post-auction fulfillment, obsessing about predictability, efficiency, and transparency along the way. Foundation for this innovation is really based on three pillars, the team, the philosophy, as well as the platform. Our biggest competitive asset today is our team.
We have hundreds of world-class software technologists in our platform who we have purposefully sourced from automotive marketplace, and consumer tech companies. Philosophy. Our philosophy is to really bring to life engaging and intelligent experiences. We operate with a customer-centric design and very much driven by data and decision-making through intelligence. Finally, our robust and scalable platform really underpins our series of products. Our continuous delivery, our domain architecture essentially has set us up for speed. As you'll hear today, we're delivering at world-class levels, enabling us to move very fast. Shown here is a paradigm that illustrates where we are relative to the market. It also shows where we're heading. ACV today is in the middle column. Our offering today has provided a trusted and efficient option to wholesale and retail cars.
ACV today has the industry's best condition report, thanks to our well-trained inspectors and our phenomenal inspection platform. The future of inspections is enhancing and building on our current industry-leading platform with AI and intelligence. My teammates here will show you what exactly we're building in the next 12 months or so. Our buying experience brings to life the best practices of engagement, efficiency, and success to buying. We recently introduced automated or programmatic buying, and we're seeing some very exciting traction with it. Our post-auction fulfillment, which George was mentioning, typically tends to be the most complex, the most fragmented part of the transaction, is leveraging automation and technology to basically add predictability, speed, and efficiency in an otherwise fragmented and challenging landscape. Our platforms are enabling efficient transactions today, and more importantly, building the foundation for innovation and disruption tomorrow.
These could be in how we are looking to digitize titles or how we're looking to Uber-ize transport. I'll show a few highlights in some of these examples before I hand off to the tech panel who'll go deeper. We'll start off with our inspection capabilities. At ACV, our customers are both dealers who transact on our platform, as well as our employees and our teammates that are inspecting the cars that they sell every single day. Over the past year or so, we've implemented a major upgrade in our already industry-leading condition report. This represents years of customer research and data insights to build a platform that's even more powerful. Our next gen platform, which we rolled out over the last quarter, is extremely exciting.
It gathers more information and more data points while making it easier to inspect, putting less of a burden on our inspectors while adding much more efficiency in the process. By the end of the year, with some of the tech that we are building around it, we will be able to gather 5-10 more data points per inspection, organized and cataloged in a structured format. This format will feed our algorithms and our buying experiences. Abu and Phil will talk about how we're leveraging machine learning and AI to enhance that platform. The other two things that get me really excited. The first thing, this new platform is template based, and what that means is we can roll out new inspection types with little or no code. That unlocks the opportunities George was talking about earlier.
Finally, the digital platform is by design enabled to work off of machine learning algorithms, which means we can customize an inspection on the car, the inspector, or the dealer level. Let's have a look at what this platform looks like. This new platform today underpins 90% of the listings that are live on ACV today. We're very late in the rollout. Our data-rich inspection enables confident buying. By leveraging a robust and structured data format, we've unlocked the ability for our buyers to buy programmatically, and I couldn't be happier with where we are today on the rollout. This has three broad benefits. For buyers, it's now easier than ever to buy on ACV. Buying rules and algorithms mean you never miss a listing on ACV.
Second, for sellers and for ACV, it brings persistent demand to the platform, driving price realization and conversion for our sellers. Third, it informs our algorithms and market demand that can be optimized to source the right inventory at the local level. If you have demand, you can try to seek supply for it. We believe programmatic buying will be a big growth driver for us. A fun fact, we're also leveraging the programmatic approach in how we're dispatching cars on transport. We're looking at carrier demand, and we're looking at cars to be moved, and we're already matching them programmatically. Speaking of which, let's look at our transportation business and tech. 2021 was a phenomenal year for our transport business.
Underpinning the strong growth in transport over the past 12 months is a platform that optimizes matching, routing, and supporting delivery for those who choose to use our optional transport offer. Our goal from day one has been to quickly and efficiently move vehicles. That drives natural network effects as we scale more and more vehicles transported on the ACV platform. Combined with a very strong carrier network and a data-driven ops, our transportation platform and team has propelled ACV to a top brokerage in the country. Two recent tech successes to highlight. First, we now automatically assign and dispatch over 40% of our transport loads. That means there's zero manual intervention, allowing these to be moved faster and more cost effectively. Second, we recently launched our carrier app, which has been very well received from our carriers.
This app allows us to more seamlessly integrate transport details and provides visibility into transport location and transport job status. This enables us to really fuel our next gen transport problem, platform. Transport's one of the bigger logistical, fulfillment activities. The other one has to do with title transfer. A little bit of context. Every car that sells on our platform requires a title transfer. The title transfer process, which tends to be very paper-based, is notoriously inefficient in the automotive space. This is aggravated primarily by a decentralized approach to titling cars in a very heavy, fragmented, state-specific way. What have we done? We've deployed process optimization. We've rolled out RPA or Robotic Process Automation and overlaid that with some of our machine learning algorithms to effectively read titles without necessarily having to touch them.
As we roll this out, we've brought scale and efficiency into a very cumbersome RCA process. Today, over 95% of our titles are processed in this way, and the best part about this is with every title we read, our algorithm gets smarter and more effective. Teammates get happier, and our customers are more pleased with reduced cycle times. We believe we're today at industry-leading cycle times and efficiencies. However, there's a lot of room for this aspect or this category to scale, and we're positioned to continue to disrupt here. The products I just discussed that we've implemented, along with the roadmap that you will see, has built a significant tech and data moat.
Every inspection, every listing, every bid, every price for a marketplace transaction generates a large amount of data. We learn about broad marketplace supply and demand dynamics. This data repository creates a flywheel effect, benefiting marketplace, powering personalization, and unlocking efficiencies. This underpins and unlocks intelligence capabilities for all marketplace stakeholders, bringing more to the ACV platform. We recognize the power of this data and have built our platforms to harness this opportunity. Now it's my pleasure to introduce the technology panel with leaders who will do a deep dive in specific areas of product and tech. I'll join again at closing to wrap up before we take a small break. First up is Greg Borowski, my friend, who is our VP of Product Solutions, who will showcase our marketplace capabilities.
Good afternoon. As Vikas said, I'm Greg Borowski, VP of Product Solutions at ACV Auctions. I joined ACV four years ago to lead product management and design. Previously, I had spent 10 years in product management and customer solutions focused on helping companies like AT&T, Verizon, and HBO to kind of redisrupt the pay TV and reimagine video experiences on mobile first and very personalized on-demand experience. And prior to that, I spent 10 years in broadcast where I witnessed the transition from digital and the rapid rise of automation that's fueled by technology investments, and it was that technology disruption that kind of steered my career into product management. In 2018, I could see the parallels of ACV and other technology disruptions in my career, and that's the primary reason why I joined.
I saw an industry that was relatively underserved and a company that had early momentum and a ton of room to grow. At ACV, my team and I have greatly benefited from working with customers, both large and small, whose industry is undergoing a massive evolution. One of the most important things I've learned in my career is that successful products put the customer at the center of everything we do and ensure that those customers are not only heard, but also listened to. You'll hear a consistent theme around customer solutions and how the many benefit from the common needs of the few. ACV customers are some of the most entertaining and enthusiastic business partners you could ever hope for, and in that lies a beautiful opportunity.
Every single one of them is a business owner and entrepreneur, and each brings a unique point of view that we all can learn from. Dealers are generous with their time and insights, and all we've had to do is take time and listen to them. At ACV, our UX research team, our teams of engineers, and our teams of designers and product managers all engage continuously with customers to help define and to steer our innovation roadmap. We segment our customers knowing that a one-size-fits-all approach will not work. We borrow best practices from successful technology companies like Google, Facebook, and Airbnb, particularly their seven-star customer experience approach, because when you aim for seven stars, five stars is a layup. Our core principle is to build products that will help ACV scale not only with current customers, but also for new customers, new markets, and new use cases.
We choose innovation over efficiency but always have the end customer experience in mind. We build platforms and products, not lists of features. We measure our success in customer engagement. The ultimate goal in KPI, our experience is so innovative and such a step forward, customers can't imagine going back to the way things were. This approach has allowed ACV to disrupt the wholesale automotive industry and change the way dealerships across the U.S. operate. I'd like to share some of those experiences, those product experiences with you now. Let's start with our flagship product, ACV Auctions. We brought a mobile-first approach with the goal of finding and buying a car on ACV to be the most innovative dealer experience in the industry. For used car managers, time is literally money. There's a general formula that used car managers stick to.
You acquire a car, recondition it, mark it up, and sell it. Rinse and repeat. The more times they can repeat that process, the more business and revenue they can generate for their store group. In the early days, our focus was on buying experiences for independent small to medium-sized dealerships that can operate their business from their phone. We made it very easy for the dealers to see the details of a car, listen to diagnostics, inspect photos, and bid from literally anywhere. It was a great start on our mission of bringing demand broadly to our marketplace. Because of our inspections and our condition reports, dealers tell us they know more about a car bought on ACV than if they were standing right next to that same car at a physical auction.
Our simple but robust buying capabilities have evolved as we've grown and engaged different types of dealers on the demand side of our marketplace. For example, we spent the last few years really striving to better meet the needs of franchise dealers who are more regimented and are used to things being in a certain way. We built in things like our desktop experience, run list and new types of bidding capabilities to make sure we can bring the right demand for every car at every price point. While we've been making constant improvements to our multi-platform user experiences, in parallel, we've been innovating on new technology focused on programmatic buying. Programmatic allows a dealership to set up filters and rules that will bid on cars without having to be present in the marketplace.
This capability is only made possible by our detailed inspections that are collected by our field teams and the robust condition report data they help us collect. Today, programmatic is especially useful for larger dealer groups that have high volume stocking lists for each late model, low mileage, make and model car they sell. ACV technology lets dealers decide how much is decided by an algorithm and how much is decided by the buying team. Picture a dial that allows a dealer to go in between fully manual and fully automatic. Going forward, we see the expanded use of programmatic across all customer segments, vehicle types, and price points as meaningful sources of inventory. In our products, we aim for high resolution into the dealer, into the activities of an auction that once customers experience, they won't want to buy a car without. Is that rolling? Yes, it is.
As you can see, the auction is a modern, clean experience that can be customized based on the dealer's inventory needs. Users can access our marketplace on the desktop or through an iOS or Android app on their mobile device. We look to search and discovery experiences like Airbnb and Zillow to help guide the user through the discovery process. We blend dealer feedback, vehicle data, and product analytics to inform search and filtering capabilities. A big advancement in our next gen product is the ability to set unlimited, personalized saved searches. Some dealers are always looking for certain types of vehicles, while most dealers are always looking for something very unique for a specific consumer. Once a user finds a car they're interested in, this is where the power of ACV condition reports can really help us differentiate.
On the vehicle display page, the user can see all the photos, listen to the amp, and inform their purchase decision. When a dealer wants to buy a car, bids are collected in $100 increments, or the dealer can set a proxy bid, which is essentially the maximum that they're willing to pay, and the system will bid on their behalf. Auctions run for 20 minutes, and the clock will reset if there's a bid with under one minute. A lot of our sold auctions run between 24 and 25 minutes, but we've seen some really hotly contested auctions run 30-40 minutes, with multiple bidders in on the action. If the auction ends unsold, vehicle moves into our offer window, and the product supports back and forth exclusive negotiation between the seller and the high bidder to settle on a price.
This continued investment that we've made in innovation on our buying platform is already helping us to expand into new businesses by delivering on capabilities beyond ACV Auctions. Case in point, in 2020, right at the beginning of the pandemic, we stood up a team at ACV with the mission to build a private marketplace experience for dealers to meet a growing need in the industry. Just a few short months later, we launched our first customer and have been innovating on this platform ever since to allow further customization, excuse me, and now we power dozens of marketplaces alongside ACV Auctions. These investments in platform capabilities allow us to meet unique audience, lane, and bidding rules and business models to meet the needs of today's customers. This investment is helping us towards the next use case like private label, commercial, and international marketplaces.
We've talked extensively about how important customers are in our product strategy and execution, so let's listen to one of our customers discussing how Private Marketplaces has helped their business.
ACV's Private Marketplace for Lithia & Driveway is a way for us to sell our cars internally. ACV Private Marketplace has saved me hundreds of thousands of dollars. It's in condition of the vehicle, not having to deal with arbitration, being able to confidently sell cars to our dealership group. ACV Marketplace taking off all those manual processes means I don't have to hire extra people to manage it. I don't have to spend time myself going through that process. ACV Private Marketplace really makes it so that I can go about the rest of my job as opposed to worrying about just this sale. Leveraging the ACV Private Marketplace, I can buy any car at any time for the right money and find a new home for it.
If I can take that Mustang in Pittsburgh in December, buy it for the right price, and move that car down to Florida or Dallas or Houston, there's absolutely a benefit to that. Biggest boom for us is being able to see the condition reports. I've got an extensive array of pictures, a great description of the car. Being able to see that undercarriage, to listen to the engine, make sure everything sounds like it's tight, so I can confidently sell that car to the next dealership for that right amount of money. We can look at our aged inventory from our stores. We can move that around with confidence, and we can transact on an internal closed basis where we don't have to worry about other players in the market getting involved in the vehicle process. The support with ACV Private Marketplace has been tremendous.
Any time of day, you know, if I've got a question, I've got a team of people that are always there ready to help. I've sold cars from everywhere across the country, on a plane, in meetings. I can do it on my phone, on my computer. It's that easy. There is not a dollar amount you can pay me to go back to the old way.
Just four years ago, ACV Auctions was our only product, and now it's one of a suite of customer solutions we've heard our customers talk about today from dealer groups like PAACA and Lithia. Our focus is achieving outstanding business outcomes for our partners and for ACV and delivering products that delight and create stickiness. We all heard our customers say it. Once they experience ACV, they don't wanna go back. Our proven marketplace platform, coupled with our inspection technology, working hand-in-hand, is a big part of the reason we believe we will continue to take both market share as well as dealer wallet share. I focus primarily on the buying experiences at ACV, but now let's shift focus to our inspections technology. My colleague, Dr. Phil Schneider, will join us on stage to talk more about our investment in R&D. Thank you for your time.
Thanks, Chris. It's all yours.
Perfect. Thank you.
Cool. Hello, everyone. My name is Phil Schneider, and I'm the Director of Research and Development here at ACV Auctions. My background's a little bit different. I'm not a sales guy. I'm not marketing. I'm not really an automotive guy either. I'm a man of science. I got my PhD in electrical engineering, where I focused on biometric identification and Ultrasonics. You're really gonna hear a narrative from me about how we're leveraging science to really innovate, to push the narrative of technology really around inspections, valuation, and just innovation as a whole. A little bit about my background. Prior to ACV, I worked at Qualcomm at their Biometrics Center of Excellence. There I helped pioneer the first ultrasonic fingerprint sensor in mobile smartphone devices. I think they're at about 100 million now they've produced.
It's been a lot of fun here now applying the science of that to ACV's problems. We're gonna start with some themes. You're gonna see a couple things as I go here. The first of which being a conversation about how we're spending our time doing innovative technology. You're gonna see that centered around AMP. You're gonna see that centered around Virtual Lift, as those stemmed out of R&D as core foundational technologies we developed. We're then gonna talk about this multi-phases of value that we hold near and dear to our hearts in R&D, and that's really, once we build it, how do we leverage it. How do we gain the most value out of that. I'm gonna talk a little bit about what we're doing with that. First, let me start with AMP or Audio Motor Profile.
Many of you are familiar with it. You'll see it on here. It was really the first product we developed back in 2018 as R&D. AMP was simply a vehicle engine recording device. You pop the hood, you set this underneath it, you press record, and it records a 30-second audio clip of the vehicle, which then our buyers can play back. Simple in design, this little orange piece of plastic had a resounding effect on the marketplace for both external users, our buyers, as well as our internal operational efficiencies. Our dealers love AMP. Why? Because it helps take the guesswork out of the inspection process, out of the valuation process. It gives quantifiable data that they know, that they're used to, right? These guys are experts in automotive, right? Much better than I'll ever be at identifying what's wrong with the car.
They can listen to it. They can make that assessment themselves, use that data, and then price the car accordingly. So from that standpoint, they love it. They can better value the car. Internally, though, we also love it. It gives us better identification of our inventory. It gives us better insight of what's actually getting put on our platform, and it's allowing us to position our company and our operations to adjust accordingly for an efficiency standpoint. I'm gonna play two samples here. Sample number 1 is a knock. Sample number 2 is a timing chain. Now, those may have sounded very similar to you. They do to me. But in actuality, if you're a dealer, you know exactly what those mean, and you know exactly the price of how much that's gonna detract from the car because it has that issue.
Since we released AMP back in 2018, we have amassed over 1.75 million used car audio sounds of over 2,000 different vehicle types with a wide range of issues, different makes, models, years, different odometer values. Some have knocks, some have ticks, some even have just belt squeals or just garbage-sounding engines, right? Basically, what we have done is amassed the world's largest used car audio database. The beauty of this, it's curated, meaning our inspectors label this data in real time when they're in the field inspecting this vehicle. If you're familiar with the concept of AI and ML, everything I just said should have made you excited because this is the perfect storm centered for innovation when you take audio and you combine it with machine learning, and we're doing just that.
Utilizing deep learning and convolutional neural networks, ACV is adding a level of never-before-seen trust and transparency through AI in its inspection process. We've teamed up with scientists across the globe, subject matter experts, PhDs, universities, automotive experts, acoustics experts, all focusing on this one problem to try to make an automatic and AI intelligence centered around AMP. The result of which we have the actual equation, an AI, a formula, if you will, that can listen to an audio sound and with a high degree of accuracy tell you what's wrong with it. Does it have a knock? Does it have a tick? Did this car get driven to and from church on Sunday, and it sounds beautiful? Or was this driven into the ground across country multiple times?
We fuse our AMP data labeled by inspectors with our data-driven condition report and see a one plus one equals three type thing. Same thing with Virtual Lift. Some of you are familiar with this. You saw some of our dealer partners talk about it. Virtual Lift was the second fast ball into AMP as a piece of foundational technology for ACV. What we did here was created the first mobile undercarriage imaging system. If you're familiar with the industry, typically it's in order to see what's underneath the vehicle, you, one, crawl on your back and look up underneath it, or two, you get on a lift, both of which are unattractive processes in my opinion. With Virtual Lift, we don't do that anymore.
Within 30 seconds in a drive over of a vehicle, you now get this nice resolution of an image that is on your cell phone in real time that you can use to better value the car. It's a new perspective for our buyers. They can see, hey, was there aftermarket modifications? Is there rust? Is there frame damage? I've seen garbage shoved up underneath vehicles. We can detect all of that. Every CR on our platform comes with AMP and Virtual Lift if the car is operable. It's a new standard. It's the gold standard. We're doing the same thing with AMP centered around Virtual Lift with automation and using AI technologies for this. We say a picture is worth a thousand words. Well, a Virtual Lift to me is worth a million data points, and that statement couldn't be any truer here.
I'm giving you three examples on from left to right here of some of the automated processes we're implementing here at ACV. Starting with the far left, we have developed a catalytic converter detection model. Simply put, if you're familiar with catalytic converters, it's a very expensive piece of the vehicle. In a matter of a couple minutes, it can be stolen with a hacksaw and sold on aftermarket, and now you don't have a car that meets regulation. Our model can actually detect the presence or lack of a catalytic converter, and does it with about a 97% accuracy. Oil leaks, rust, common issues on vehicles. If we take a second to focus in on the rust, I've learned more about rust than I've ever would like to, by the way. There's aspects of rust which we wanna know more about. Is it structural rust?
Is it penetrating rust? Is it surface rust? Those three different classifications absolutely determine the value or impact the value of that car. Our model can automatically, or we're getting to the point where our model can automatically detect what type of rust it is, how much rust is on there. We say, you know, we wanna get to the point, and we joke in R&D, where this inspection process is so easy that even Phil can do it. You know, we're not that far off yet, right? Because when you think about the level of automation we're seeing through technologies like AMP and Virtual Lift, we're getting closer to it. You no longer have to be a mechanic of 20 years now to diagnose what's wrong with your engine.
No, you just take out your AMP, record it, and let my machine learning algorithm that's listened to 1.75 million audio samples tell you exactly what's wrong with it and how much it's gonna cost to fix. We're getting closer to that level. But I always get asked, "What's next?" It's never enough. Everyone wants more, rightfully so, right?
Wait, wait one second.
Yes.
When you were in Buffalo, every one of you said, "Phil, what's next?" It's time to.
I had to add it to it. Yes. It is my pleasure to introduce to you for the first time ever, the newest ACV inspection product, APEX. The pinnacle of data collection systems, APEX was designed to be an extensible, flexible platform that will enable never before seen data insights, sensor readings, and technology innovations all in the palm of your hand. From a technology standpoint, APEX has a number of really attractive features and sensors that sets it above the rest. I'm gonna walk through a few of them. It's an IoT device. What does that mean? How does that translate back? It's wireless. It's a platform. It can be used as a central hub, if you will, to pair other devices. Say you wanna take a Virtual Lift, an OBD-II sensor, pair it with our CR, APEX can do that.
You now start to get connections, more data connections, more insights on that vehicle. Machine learning feedback. This thing is robust. It can house models directly on the device. Think of this as real-time feedback. Think of this as, hey, put an APEX down underneath the hood, and if you see a red light, you know you got a problem. If you see a green light, it's clean. Knocks, ticks, belt squeal, a number of issues that can go wrong with a car, we're getting that level of intelligence to do that detection. On the far right here, you're gonna see some of the sensors we've retrofitted APEX with, and they're fairly impressive. A microphone array. Our AMP is a single microphone, very one-dimensional. APEX is an array, front, back, left, right, up, down. Why does that matter?
Well, I wanna hear what's happening inside the car as well as in front of it. I wanna also know what kind of noise we're getting in the background so we can do some cool signal processing with that. Audio quality-wise, superior. We're gonna get cleaner signals. What does that mean? Cleaner data, better machine learning models, better intelligence associated with APEX. Vibration. On each inspection, we record not only audio but the vibration signals for the engine. These are complementary data streams, and I'm gonna nerd out for a second, right? Because this is a concept where acoustics and vibration can be joined together and fused together to be a one plus one equals three to give more insights on the health of the vehicle. We actually published a white paper on this.
We actually have a great team of researchers that created a world-class machine learning model for fusing audio and vibrational data together. Think of vibration as predictive failures. Think of vibration as more than just audible sound. Gas and odor. Does your car smell? Does it smell like a new car? Was there water damage and mold? Was this an Uber car and someone threw up in the back seat? Is there smoke coming out from under the hood? All valid concerns. Ultrasonics. You heard my Ph.D. is in sound and biometrics. We're actually gonna start measuring non-audible signals. It may not help our buyers directly, but it's going to give us a ton of insight on what's happening on the vehicle. Think about electric vehicles. They have to be treated differently than internal combustion engines. APEX is the first step for that.
Now, with more data comes more complexities, right? What we're trying to do with APEX, what we're trying to do with our whole ecosystem of technologies is get to a one central point where we can get that, we can leverage as an elegance of solution to condition the vehicle. We're creating what we call Condition IQ. It's an AI-based system for vehicle conditioning and modeling. Well, what does that mean? We take multiple data streams, technology, AMP, virtual lift, OBD2, paint meters, hardware technology, and we pair it with metadata. Was it raining that day? Where are they located? What's the temperature that day? Who's the inspector inspecting the vehicle? We then combine that with our subject matter experts. I think Mike said 1,100 vehicle condition inspectors.
We take their knowledge and we throw it in this model, and we say, "Oh, you've inspected 100 Ford Tauruses before. Tell me everything I need to know so my machine learning model can learn what you know." Imaging. Virtual Lift. I'm about to pass this over to Abou-El-Raki shortly, who's gonna just blow imaging out of the water. We're gonna add all this in one final model. Condition reports, and finally, APEX sensor data. So what can Condition IQ do? I'll give you an example here. I can take a CR, a condition report on our platform and not look at any pictures. I can take the metadata, the condition report, and maybe some subject matter experts, and I can tell you with a high degree of accuracy, "Hey, that car is probably gonna have a hole in the front right rocker of that vehicle." Guess what?
I'm usually right. We're taking the level of predictive analytics, AI, machine learning, and putting it into one elegant model, and we're just scratching the surface here. This is gonna impact pricing. This is gonna impact consumer technology. This is gonna create new verticals of data insights and really set the standard of how we're doing digital inspections. I appreciate the time. I wanna talk more about imaging here, but Abou-El-Raki really is the subject matter expert, and so I'm gonna pass this over to him, and he's just gonna keep the ball rolling here. Thank you.
Hi, everyone. Thank you very much. It's very impressive. I'm Abou-El-Raki, Co-founder and CEO of Monk. First, I'd like to say that I'm really excited to join officially ACV family, such an inspiring team that has completely disrupted an entire market in only a few years. With ACV, we share the same vision, same values, and have highly complementary products. At the end of the day, we just feel at the right place at the right time with the right people. Concerning my background, I'm Abou-El-Raki. I am an artificial intelligence engineer from École Polytechnique in France and from UC Berkeley in California. I'm actually still AI professor at École Polytechnique in France, and I have several years experience in the venture capital industry as a venture investor.
I've been always fascinated by the way AI could bring more transparency and has an amazing impact in our lives to fix and normalize complex processes. This is why more than two years ago, I co-founded MONK in Paris, in France, as you can hear from my accent. Now two years after, we are a team of more than 20 people and have dozen of clients all over the world. To build a world-class AI platform, you need obviously different ingredients, right? First, a highly qualified data science team, which we are lucky to have now, and an ecosystem of world-class universities with whom we have different partnerships to create state-of-the-art algorithm. Second, you need millions of structured data from all the automotive value chain, very diversified and highly qualified.
On top of this, you need a sophisticated AI labeling system with several teams in different geographies. Third, a renowned automotive partners who help to feed your algorithms with their knowledge and their business rules. We always say it's like taking the average opinion of thousands of inspectors for a single inspection. It just allow you to standardize and avoid all the mistakes. As you can easily get, ACV will massively accelerate the advancement of our artificial intelligence platform. ACV uniquely brings thousands of trained and professional. inspectors and the highly structured data, condition data, and shared commitment to trust and transparency. You can see an illustration of our products in your right. It's very simple to understand. Everyone here has a smartphone. You can take different pictures of your car and soon video, and we run the analysis in three simple steps.
First, a pre-processing check, where we make sure that the pictures are not too blurry, not too dark, that we can see all the car in this picture. We do car/part segmentation that allow us to have a standard of the car. Our artificial intelligence platform detect and classify at a pixel level all the scratches, dents, and other damage that are visible on the car. Let me please now show you a demo of our products. I press play. So the value proposition is quite simple and very powerful at the same time. It's extremely easy to integrate, completely hardware free. You can plug our system via API, SDK, web application, mobile application, or even being behind a fixed system. While at the same time, ensuring a high level of accuracy, recall, and precision.
Thanks to our continuous learning system, we keep feeding and improving our algorithm based on our client feedback. At the end, it results to a strong worldwide traction in only few months and years. We won more than 15 RFP with different leaders all over the world, and we are in live production in Europe and in North America. Moving forward to the overall ACV and Monk partnership, as I mentioned earlier, we have a common vision on how an inspection should be done. Each time a car changes hands, its inspection, and therefore each car purchase, should be done with the most transparency, efficiency, and trust possible. Concretely, this will be done obviously in several steps. Today, by combining Monk offer with all the power of ACV on the subject of the condition reports, starting with ACV platform.
Once the inspection is done, it will have a direct impact on a better pre-screen filter developed by our ACV teammates, and therefore mechanically disclose more and more damages. This will have a direct effect on lowering all the cost of arbitration, inspection time, and a better user satisfaction. In the long term, it will of course open up many more and more machine learning technology products with our teammates as Phil could already show us, and of course, more opportunities in the whole automotive markets. Today, Monk is already working with several clients in different automotive verticals. For example, we work in the salvage industry, in the rental industry. Consumer inspection, logistics, and commercial vehicles. Earlier, Vikas talked about the next generation platform. This is exactly where Monk integrates seamlessly with it.
This is why we believe that together with ACV, we just have everything to create this gold standard of inspection for the entire automotive industry. I'm very happy now to hand over to my new teammate, Ryan, from the amazing MAX Digital team.
Thank you so much, Abou-El-Raki. It's amazing stuff that they've been putting together there at Monk. My name's Ryan Walker. I've spent the last 15 years working leading digital product teams in the B2B and B2C spaces. I joined MAX in 2017, and since then we've been immersed in digital automotive retail, building out MAX's dealer services ecosystem. I wanna talk a little bit today about what is MAX Digital and how does it bring together all the innovations that our team has been showing today, and how does it fit within ACV. MAX Digital is an inventory management system. We serve franchise dealers. We were started as a company called FirstLook in 2002, so we've been in the automotive space for over 20 years.
We were one of the first inventory management providers in the space. What is inventory management? Inventory management is a platform for dealers that allows them to bring together all of their retail and wholesale operations into a single command center. It's where they operate their retail and wholesale operations, and it's that central point for their business. Inventory management does a variety of jobs, from appraising vehicles both remotely and in person, from pricing, merchandising vehicles, and from recommending what to buy and sell. We take all of that inventory in, we enrich that data through hundreds of integrations, and the dealers can manage that in a central platform, and then we syndicate it out across all of their retail and wholesale channels. Why MAX? MAX joined ACV in 2021.
You know, we get asked a lot, "Why MAX Digital? What? How does it fit into ACV?" We think there's really two core reasons why we're a perfect partnership for ACV. Firstly, MAX has a huge volume of retail data and services. Our history has been in retail automotive. ACV has a huge history in wholesale data and experience. When you merge those together, all of that data, all of that intelligence that we're able to generate gives us huge number of insights that can be provided across not just the MAX products, but all the ACV products as well. Reason number two, MAX is an easy integration into a network of dealer services that help provide the ability for our dealers to drive more retail and wholesale transactions.
MAX is where dealers make their decisions on what to buy and sell. ACV is where they execute those transactions and ultimately where they'll be able to be automated more and more. MAX and ACV are sharing a wealth of data in our centralized data platform, our data hub, and we use that to improve the intelligence across all of our products. Greg talked about how our marketplace generates a huge volume of wholesale transactions. Those wholesale transactions make MAX's valuations on vehicles better. Likewise, MAX generates a huge amount of retail history on what dealers are buying and selling. That data enables better personalization on the ACV marketplace and works together seamlessly to be able to provide more personalized recommendations for dealers on what to buy and sell. More data, more insights, more value for our dealer customers.
We can recommend what to buy and sell based on personalized local data as we get all of this data together. It's not just aggregated industry data, it's dealer-specific data. Because we have their retail or wholesale sales transaction history, we can make recommendations and feed data models that are personalized for that particular dealer. Dealers develop a lot of specialty and a lot of personalization as they sell vehicles, that might not be the same as the dealer down the street or a dealer in their region or another, similar OEM franchise. The ability to personalize that data is really key, and it drives better outcomes, makes all of our machine learning models smarter, and fits together really seamlessly. I wanna talk a little bit about the sell side first.
One of the core pillars of MAX is our ability to help dealers sell inventory. We do this in two ways. The first is through automated merchandising, and the second is through data syndication. Automated merchandising. We've spent years collecting vehicle data, hundreds of thousands of data points. We have our own proprietary data extraction tools. We couple those with integrations with franchise OEMs, dealer DMSs, data aggregators, retail and wholesale marketplaces, and a lot more. All of that data about vehicles that we pull together enables us to automate the process, the manual tedious process of merchandising a vehicle. We use it to add package and equipment data automatically, correct errors and omissions that come out of the dealer's DMS.
We use machine learning to label retail photos and automate the ordering and the processing of those to create automatic photo guides. Ultimately, we take all of that data, and we generate unique descriptions that can be syndicated out to the web of those vehicles. George talked before about how every used car is unique. Every used car has its own value points. When we take this unique data about those cars and we're able to craft that different story, that different message for every car, we're selling or helping the dealer sell on differentiation, not just lower price. Ultimately, better outcomes for dealers. After we've compiled all of that data, we take it, we syndicate it out to all of the retail and wholesale channels.
We integrate with about 600 different integrations in the industry. Pretty much everyone in automotive, we're connected to, pulling data in and pulling data out. Think of MAX really as that central hub, and that's where all this comes together. Talking a little bit about the buy side. MAX has a powerful toolkit to help dealers buy more vehicles, and most importantly, buy the right vehicles for them. Our acquisition tool, which we call MAX Appraisal, answers those questions of should I buy this car? How much should I buy this car for? Really, what's the ACV, the actual cash value? What is this car really worth? That's the, you know, kind of holy grail of what we're all trying to get to.
What is that real, actual cash value? Our MAX Appraisal tool helps dealers find that. So we pull in a huge amount of data from a lot of different sources to help them determine the valuations on vehicles. We use retail sales history. We use local market data, buy and sell recommendations, reconditioning data. Just a huge amount of data that we're pulling in there. But the marriage of MAX and ACV is where this gets really exciting because of the things that my colleagues talked about today. As we, like Greg talked about marketplace bids and how real-time valuations on the marketplace can be used to ultimately give real-time values for what a car can sell at for wholesale today.
If I'm a dealer and I'm appraising a vehicle, that instant insight on the real-time auction value of that vehicle is hugely helpful, especially in today's market, where the volatility is so high with used car pricing. You know, valuations that are based on data that's 30, 60, 90 days old just doesn't hold the value as real-time data that we're able to provide. Abou-El-Raki talked about Monk and their AI damage detection. Obviously a huge amount of value there to be able to put better reconditioning on a car, getting to that better number, better data for dealers, better valuations, and ultimately better profits for those dealers because of it. Phil Schneider talked about the APEX device, which amazing stuff.
Data that has never been available, we're able to collect and process and use machine learning to give better dealer recommendations. All of that being fed into our appraisal tools, ultimately just makes them more and more powerful. We're collecting more data. We're feeding it in. We're giving better valuations. We're getting that ACV, and dealers are able to make more money and know more and more about a car. This, like I said, the intelligence being personalized to that specific dealer, is really key in this case. All of that working together just is an incredible amount of power. Also, with our recent acquisition of Drivably, we are able to take this even further on the consumer acquisition side.
You heard Kate talk a little bit before about our Live Appraisal product and how we're able to put real values on vehicles for consumers as they bring them into the dealership. Drivably is helping us take that even further. You know, it's probably the biggest problem that dealers face today in the industry. MAX talks to a lot of dealers, and every time we ask them, you know, "What's the biggest problem in your business?" More often than not, the top thing we hear is being able to acquire enough vehicles to fill my inventory, to fill my lot. Consumers are really a great channel that dealers are starting to turn to to acquire more of that inventory.
You've seen the commercials at the Super Bowl, I'm sure. Carvana, Vroom, others. Seamless, easy ways, come sell your car, avoid the dealership. Combining that with the inventory shortage and a dealer struggling to find cars, it's cutting into their margins. At MAX, you know, as we talk to these dealers, that's just the absolute top thing that we hear. Drivably is bringing a powerful consumer buying capability to our suite of products, that we're integrating across MAX and all of ACV. Drivably is powered by the ACV pricing engine, which is our machine learning model for vehicle valuation. It's a condition-adjusted model. Very, very powerful. Within MAX Appraisal, Drivably gives even more capability.
As we integrate with our appraisal tool, we're able to provide an end-to-end consumer experience for selling your car. It's not just an offer you get online and then taking it into a dealership and getting something else. You get a complete transparent process all the way through, which is key to a customer. With our ability to give better valuations because of our better data, we're able to give better offers to the customer, which means sourcing more customers for the dealership, which means more supply. The nice bonus around that is as we're able to give a better customer experience, provides more repeat business for the dealer. Customers coming back, customers happier with the process, ultimately selling more vehicles to that dealer, and helping address their supply concerns.
Without, you know, a world-class technology team, none of this is really possible though. I'm gonna turn it over to our CTO at ACV, Bahman Koohestani next, who's gonna talk about how we built that team at ACV.
Thank you, Ryan. Hi, everyone. Good afternoon. I hope you're enjoying the presentation so far. Impressive team. I think you would agree. My name is Bahman Koohestani. I'm the Chief Technology Officer at ACV. I've been at ACV since September of 2021, which makes it less than six months. So I'm just gonna give you a little bit of introduction about myself. I was one of the early leaders at Netscape in the mid-1990s. If some of you may not remember Netscape, but some of you may, where we created and commercialized a lot of the web technologies. We created the first browser, we created SSL, we created JavaScript, we created cookies and many other technologies. Let me just, you know, this white thing behind me.
I was also the chief technology officer and the chief product officer at Orbitz, where we created one of the first online travel platforms. This is early 2000s. Really grew the organization tenfold in about three years. I also led and grew the technology and product teams at PayPal, globally on all of our payment gateways, mobile, and checkout products. I was also the chief technology officer at Thomson Reuters, where we introduced the very first predictive analytics products and created the very first cloud-based, cloud-native platform and services for the company. You know, a number of different products in that organization use what we created, especially patents products and commercial and financial products.
The patent products are really difficult when it comes to analytics, if you're familiar with how patents are filed and you know, anonymously filed and read and so on. My last role before joining ACV was at LendingClub, where I was the Chief Technology Officer and the Chief Product Officer for LendingClub. I led and scaled our products and technologies such as loan and credit facilities, online deposit and investment accounts, and car equity loans, loan accounts for consumers and scaled the technology platform to manage loan marketplaces of about $12 billion per year and led the acquisition and integration of a bank, which was an interesting integration and acquisition process for me. I've never dealt with a bank before.
I've been at a few companies, and I would have some gray hair, except that I have no hair, so you can imagine that. But I'm very excited to be part of ACV, leading the technology, product, and analytics organization here. I believe there's an incredible opportunity to disrupt the auto marketplace industry through great products, analytics, insights, and innovative technology. I wanna sort of take you and give you some of those highlights. Today, I wanna take this opportunity to introduce to you the ACV technology platform and provide some of its highlights about its structure and how it operates to a certain extent. The platform is based on microservices, cloud native, cloud agnostic, Kubernetes-based architecture that provides services and APIs for all of our business domains and products. The architecture is extremely modern.
That's really that long sentence, just relaying that the architecture is extremely modern. It's leading edge. Our platform is also cloud agnostic. We utilize both AWS and GCP, which is the Google Cloud Services today. We utilize the best services of those platforms. We do that because we believe that there are certain services at Google and there are a number of different services at AWS that gives us the ability to combine and provide the best customer value. Our marketplace domain is where we provide the services for all of our buyers and sellers to effectively and efficiently engage in searching, bidding, communication, and other activities with one another. The purpose of that is to conduct transactions.
Our transportation domain provides the capabilities to easily move cars from buyers, from sellers to buyers or point A to point B. It uses artificial intelligence and machine learning at its core to assess the most effective transport routes and the most effective and efficient transport providers. Capital domain is focused on providing funds and funding facilities to our customers where necessary and needed. I'm very familiar with the capital domain coming into the organization, as you might expect. We are also providing dealer-to-consumer products, and I think you heard a little bit about Live Appraisal and other types of products today. It empowers our dealers to have different ways of acquiring consumers and having a relationship with their consumers.
Our services through our platform provide both predictive and descriptive analytics, which is based on machine learning and artificial intelligence. You heard Abou-El-Raki from Monk, and you talk about their image AI capabilities, and you heard from Dr. Phil Schneider, who talked about our latest greatest innovation. That's all descriptive analytic capabilities. I'll touch a little bit, and I'll talk a little bit about predictive analytics in the next slide. This provides the services that we can use across all of our domains and all of our technology to actually provide data insights. We also support robust APIs. You heard about programmatic selling, buying and selling, but programmatic buying today, offering our services and buying plans to our customers to utilize programmatic buying. Our APIs provide the plans to actually be utilized by our customers to activate programmatic buying.
Our platform sits on top of our data infrastructure, which is not a data warehouse. Data warehouses create a lot of problems for organizations. We do not have a data warehouse here. What I mean by a data warehouse is that core data platform, it is not hundreds or thousands of tables. It is an ACV innovation. This is something that we have built based on a number of very scalable technologies out there, such as Kafka, if you're familiar with technologies out there, that provide very scalable data streaming and management platform that is based on a publish-subscribe model, where we can provide data to different domains or across domains where it makes sense to create customer value.
A domain can publish a certain topic or a certain data, and another domain can pick that up based on that topic or that data that makes sense for that domain. Capital can talk to transport. Marketplace, transaction can talk to everyone else or a combination of all. This is a huge competitive differentiator for us. I would say this is a huge competitive differentiator for us. It's something that I think I'm actually very proud of this data platform that we have. Predictive analytics. Illustrating our predictive analytics capabilities, our valuation platform is an incredible core capability for our customers, where we utilize all of our core artificial intelligence and machine learning and data to create our estimates . The way this works at a high level is that we have a number of different signals and data points that we acquire.
Think of data, the way this works is. I should stay close to the microphone. The way this works is data acquisition, data ingestion, data distribution. We acquire data points and signals, and these are some of the data points. We have a lot more data points. To illustrate, retail data points, trending data points, third-party data points, marketplace transaction data points, inspection data, all kinds of data points and signals. They go into our algorithms, and in here we engage a perpetual cycle of digesting the data, understanding and applying the various learnings that we've had from the previous cycles, going through a predictive process and then coming up with our initial estimate.
We have a calibration engine, which takes the initial estimate, applies a number of business plans and business rules depending on a number of different factors, and comes up with the final estimate. In my opinion, that final estimate is the best in the industry. Our confidence score in that final estimate is more than 92%. It's significantly, in my opinion, the best estimate we can put out there that I've seen from any other provider. Now I'd like to introduce you a little bit to the way that we operate, our technology approach in building and delivering our products. One of the most important technology building and operating metric for us is velocity. Why velocity? Because it is a productivity multiplier.
Much in the same way that an assembly line in a car industry is a productivity multiplier, velocity in software development is a productivity multiplier. Velocity of engineering and development, the teams, how many story points can we score per day? We have a very agile organization. That's really important for us, and we measure it on a continuous basis. We have true continuous development and continuous deployment processes, CI/CD. That cycle, we average about changes to production every two hours. Our goal is to get to a point that we have continuous deployment and development and deployment, where we actually deploy as soon as things are ready. We don't necessarily. It will be all the time. There is no two hours anymore.
Our goal is to get a new developer productive enough that they can push code into production at the end of their first day. That is nested in a lot of different automation in terms of quality control and making sure that all of our quality checks and metrics are checked before it's pushed into production. We do that today. We are going to increase that automation from a testing perspective to make sure that that continues to escalate and become better. A couple of metrics are MTTR, mean time to resolution, is half a day. What does that mean? Well, mean time to resolution, there are four metrics that we measure. There is repair, recovery, respond, and resolve.
When an incident happens, from the point that we detect that an incident all the way through understanding its root cause, on average, it takes us about half a day. The deployment frequency I talked about is about every two hours, and then our uptime is about 99.95% of the time. We are world-class based on these metrics, and I can confidently say that we are in the top 5% of technology organizations on this planet. Let me talk about our organization. I'm so proud of this organization. We've gone from 30 people in 2019 to about 300 people in 2021, exiting 2021. We've done this despite the virus, COVID. We've done this despite the fact that there is significant pressure right now for technology talent in the market.
Everybody is looking for talent. The icing on the cake, we measure our attrition rate, and over the past 3 months, our attrition rate is less than 7%. I have never been at a technology company that has an attrition rate at that level. Never. That really shows how excited, how engaged, and how committed our people are to what we are doing and our mission as a company. Our plan is to scale our organization globally. We now have physical presence in Buffalo, Toronto, Chicago, Florida, Cincinnati, and a few other places. This is product and technology organizations. I'm not talking about sales. Mike has a lot larger presence in different areas. We now, with the acquisition of Monk, we are proud to have a presence in Paris, France, which I'm looking forward to visiting soon.
We have presence in Argentina and a small team in India. We will grow our global teams and talent, increasing our presence in a more cost-effective regions significantly. That is part of our, actually my mandate to do that. In closing, I like to say that I've been around a lot of technology companies and organizations in my career. I have never seen the level of excitement, engagement, innovation, and drive anywhere else that I see at ACV. I'm so in love with Dr. Phil here, Dr. Phil Schneider, and his products. When I was interviewing here, I told Phil, one of the impact that it had on me to actually come to ACV was that R&D team. They're fantastic. They're second to none in the world. You've seen some of the R&D innovations.
I just took you through a high level of what our platform looks like. It's modern technology. You've seen some of the analytics. You've seen some of the stuff that Ryan talked about. All I can tell you is that we've been really, really busy. The organization has been really busy creating world-class, innovative, and amazing products that will absolutely change the industry forever. I can guarantee that. And with that, thank you very much for listening to me, and I wanna turn it back over to Vikas.
Just a quick wrap up, and then we'll take a 15-minute break. I'm so glad today you had an opportunity to see a demonstration of our product suites and offerings for our customers. As you can see, we are obsessed with delivering the next generation technologies to help our customers be more successful. We have already today the industry's best condition report. With our latest investment in the next gen platform, by the end of the year, we'll be having 5-10 times more data in structured format than we do today. Augmented with some of the stuff that Phil and Abou-El-Raki talked about, this will only get better. Greg spent some time talking about our buying experiences and our marketplaces. This is an efficient, engaging, automated buying platform we have today.
Ryan talked about how we're bringing all of the data from retail and wholesale together. Experiences are connected. Data feeds into getting more and more intelligence for our platform. Then Bahman talked about this world-class, robust platform and an unbelievable team. Our mission is to disrupt the auto industry, and I feel great about where we are in terms of our ability to drive change to it. Thank you so much. I'm gonna hand it back to Tim.
Thanks, Vikas. Thanks, team. I'm gonna be a little bit of a bridge here. We are running a bit behind, if we could make it at 20 of. Call it just under 10 minutes. Quick break, and then we'll end with Bill's session and then jump into Q&A. Probably gonna go a little bit over four, but we'll be back at 20 of. Thanks.
I wanna dance by water 'neath the Mexican sky. Drink some margaritas by smooth blue light. Listen to the mariachi play at midnight. Are you with me? Are you with me? Are you with me? Are you with me? Listen to the mariachi play at midnight. Are you with me? Are you with me? I wanna dance by water 'neath the Mexican sky. Drink some margaritas by smooth blue light. Listen to the mariachi play at midnight. Are you with me? Are you with me? Are you with me? I wanna dance by water 'neath the Mexican sky. Drink some margaritas by smooth blue light. Listen to the mariachi play at midnight. Are you with me?
Are you with me? I am quite wandering around this old and empty house. Hold my hand, I'll walk with you, my dear. The stars gleam as you sleep, it's keeping me awake. It's the house telling you to close your eyes. Some days I hate it, doubt my style. It's killing me to see you this way. 'Cause though the truth may vary this. Ships will carry us. Bodies take the shore. There's an old voice in my head that's holding me back. Well, tell her that I miss our little talks. Soon it will be over and buried with our past. We used to play outside when we were young and full of life and full of love. Some days I don't know if I am wrong or right. Your mind is playing tricks on you, my dear. The truth may vary this.
Ships will carry us. Bodies take the shore. Don't listen to a word I say. These three are on the same. Though the truth may vary this. Ships will carry us. Bodies take the shore. You're gone away. I watch you disappear. All that's left is a ghost of you. Now nothing we can do. Just let me go with me to junction. Now wait for me. Please hang around. I'll see you when I fall asleep. Don't listen to a word I say. The streets are paved with shame. Though the truth may vary this. Ship will carry on. Far we safe to shore. Don't listen to a word I say. The streets are paved with shame. Though the truth may vary this. Ship will carry on. Far we safe to shore. Though the truth may vary this. Ship will carry on.
Far we safe to shore. Though the truth may vary, this ship will carry on. Far we safe to shore.
I feel so close to you right now. It's a force field. I wear my heart upon my sleeve like a big deal. Your love pours down on me, surround me like a waterfall. There's no stopping us right now. I feel so close to you right now. I feel so close to you right now. It's a force field. I wear my heart upon my sleeve like a big deal. Your love pours down on me, surround me like a waterfall. There's no stopping us right now. I feel so close to you right now. There's no stopping us right now. There's no stopping us right now. There's no stopping us right now. I feel so close to you right now. Is that all?
Yeah. Hey, folks, can we gather back to kick things off here so we don't run too late? Thanks.
Somebody else?
I don't know who. It might be Vikas.
Yeah, we should probably. Not a question. How do we get everybody back?
Yeah. Okay. All right, guys. Are we ready to go here? It's kinda hard coming back from a break, so.
All right, we're gonna gather back in 30 minutes.
All right, guys, let's get going here. Bill Zerella, CFO. First, let me say that, after a year of Zoom calls, it's great to start meeting some of you guys in person. Kind of a three-dimensional view versus a 2D view. I'm kinda excited to do this today. Look, I think you guys have seen a lot of interesting things. Hopefully, you think it's interesting in terms of what we're doing on not just the go-to-market side, but also the technology side. Yeah, I'm gonna walk through the financials here at the end.
I'll try to get through this relatively quickly since we're kinda running behind. You know, some of this for those of you who know us really well might be a little redundant at the beginning. You know, as we go through the materials here, I think you'll find some of this new information that we're providing and some of the new fidelity interesting. I'll start out with the business model, and what you're gonna see is that we're breaking this into a few different pillars and giving you guys a little more fidelity in terms of the revenue streams and the cost of revenue dynamics and profiles associated with those revenue streams.
We'll talk about the growth factors that we've been experiencing in those different lines of businesses, if you will, which are quite significant when you see the three-year growth trajectory of these different revenue streams. We'll get into an update on the cohorts. We presented the cohorts when we went public, which is coming up on a year ago, actually, in a few weeks, and we'll give you an updated view of those. We'll finish up with our five-year path to the targets that we articulated in our last earnings call, $1.3 billion and $325 million in EBITDA. First starting with our business model, roughly 94% of our revenue last year occurred within the umbrella of our digital marketplace.
What we've done here is we've kind of divided this into three major pillars, two of which are within our digital marketplace, and the third is outside of our marketplace. Within our digital marketplace, about two-thirds of that revenue is from buy fees, sell fees, and our customer assurance revenue streams, which is our Go Green product offering, in which we protect sellers from arbitration costs from buyers. The other third is from our marketplace services that attach into the marketplace. These are transport and ACV Capital. Then outside of our marketplace, representing 6% of revenue last year, are our SaaS and data services. When we went public last year, basically this was just a data services bucket.
Since then, we bought MAX Digital, obviously, and we've now added SaaS revenue streams, which we're gonna be leaning into a little more going forward. I'll talk about that when we get to the five-year targets. I'm not sure if you guys can see everything here, but I'm gonna kind of explode this out for these different pillars in the subsequent slides. Again, just walking through these different pillars. Our buy fees and sell fees. Sell fees are relatively fixed. Those are negotiated seller by seller. Buy fees vary with the price of the vehicle. And again, I think most of you are aware that we did change our buy fee schedule in December of last year.
What happened last year was we really didn't benefit as fully from the increase in used car prices and increase in GMV being transacted on our platform since our buy fees capped out at 15,000. Frankly, we were pretty transparent in saying our buy fees are below market. At some point, we will adjust those buy fees. I'll talk a little more about that later when we think about the five-year model and some of the dynamics as the market readjusts in terms of used car prices kind of moderating over time. Our assurance product is basically a fixed fee. We charge $75 to our franchise dealers, $100 to independent dealers. Most of the selling happens from our franchise dealerships.
This is a seller fee to, again, protect them from arbitration costs. In terms of the second pillar, marketplace services, again, this is transport and ACV Capital. Transport is the one line of business here that we record on a gross basis. We're required to for GAAP purposes. Again, we have our own marketplace of thousands of transport providers that basically bid on our jobs in terms of when the buyer clicks that button and says, "Yes, I want ACV Transportation Services." And then ACV Capital. And again, I'll talk about the different margin profiles and how those are going to change over time when we get to the five-year modeling. Then on the far right, our SaaS services and our data services.
As you would expect, you know, MAX Digital carries higher margins than some of the other businesses that we're in, especially our inspection services, where we provide inspection for a fee. Those are not huge margin businesses today, but a lot of the technology that we're investing in will ultimately drive our cost of inspections down, which will improve that margin profile. Again, I'll talk about that a little more when we get into the five-year outlook. Okay, so if we just look at some of these revenue trends, first at a high level, an 83% CAGR over the last several years. So phenomenal growth. Again, when we went public just a year ago, you know, we were modeling about just over $290 million in revenue for last year.
We hit almost $360 million in revenue. What you can see on the right-hand side are the growth rates for those three different lines of business that I just went through, starting with SaaS and data services, marketplace services, and auction and assurance. Now if we look at each one of these, starting with our marketplace revenue, so buy fees, sell fees, customer assurance, you know, 77% CAGR. Again, arguably, this growth would have been higher if our buy fees adjusted more so with the price of the vehicle, okay? You know, basically, we didn't reap as much of the benefit as we would have otherwise. That was somewhat deliberate, and I'll get to why when we get to the kind of the five-year view.
Either way you look at it, obviously very strong growth, just under 60%. You know, that's in the context of a market that was highly volatile last year, right? GMV. You know, GMV exploded last year. Grew 140%, almost $8 billion worth of transactions through our platform, you know, which is more than the prior two years added together, right? There's really three components of this GMV growth. First, unit growth by definition is going to drive GMV. We're just transacting more units. 43% unit growth. 43% of the 140% was just due to unit growth. The rest of the growth is really evenly split between the increased breadth of transactions on our marketplace, and used car prices going up. Arguably, used car prices will come down.
Really, this is where our buy fees will come into play as we think about kind of the future outlook. Transport and capital. We've talked a lot about increasing our transport attach rate over time. When we went public, we spoke about a two-year target to get to a 50% attach rate on transport. Why was transport important? For two reasons. Number one, it increases the SLA to both buyers and sellers. What we found over time was that if we actually were more in control of the transport for our buyers and sellers, that we could deliver a better time in terms of picking up the car and more reliability in terms of when the buyer would receive it.
That was very important just in terms of, you know, driving a better experience for both our buyers and sellers. Secondly, we wanted to drive an increase in attach rate because we wanted to get more scale faster. Why is scale important? Scale is always important because it drives better unit economics. If you look at that increase attach rate and then overlay that with our growth rate that we're projecting over the next five years, we're going to have a very, very large transport business, which will give us a lot more leverage as we drive towards better unit economics on the transport side. On the bottom, some of you in the back might not be able to see this. Actually, our transport attach rate back in 2019 was over 50%. Why was that?
That was because the company opened a lot of new territories back in 2019 and was subsidizing transport in order to import buyers into these new territories. That didn't generate great unit economics because we were actually losing a lot of money back then. Frankly, it was the right thing to do in terms of getting the flywheel going in these new territories. Over time, based on the unit economics and the cohorts that some of you have seen, and I'll update, we reduced that subsidization as we create more vibrancy in the marketplace. That's why the attach rate was so high back then. We landed last year at 47% attach, but we frankly exited just over 50% attach.
Our ACV Capital attach rate, which again is at the very bottom, you guys probably can't see it, was 1% back in 2019, 2% in 2020, and then 4% in 2021. It's been doubling every year. Our revenue for ACV Capital, however, grew 300% year-over-year. It wasn't just the attach rate, it's the value of the vehicles that we're financing as well as some new offerings that we've been incorporating into ACV Capital. Still a very nascent business, growing really rapidly. We expect that to continue. Most importantly, it's a very, very profitable line of business. Actually, it's our most profitable line of business. Okay, and SaaS and data services.
You know, basically a big part of the growth, well, not maybe a big part, but a good part of the growth this past year has been, you know, having MAX Digital under our ownership. Frankly, you know, Ryan took you through a lot of the dynamics there. When we talked about this on the last earnings call, you know, we're really happy with the traction that we've seen after acquiring the company roughly six months ago. You know, 150% increase in the pipeline. Frankly, there's opportunity for cross-selling on both sides of this. That's just the MAX Digital pipeline. There's opportunities for us to continue to penetrate more franchise dealers through their relationships, and we're not even speaking to those dynamics yet.
This for us is an interesting opportunity because obviously, again, SaaS revenues carry higher margins, more predictability and sustainability. You're going to see us leaning more in on the SaaS side over time. While it's a relatively small portion of our revenues today, it was $23 million last year, there's some nice opportunities as we think about kind of continuing to build out our portfolio over time. Okay, the unit economics. This should be a familiar slide for a bunch of you guys. On the left-hand side basically reflects the land and expand, you know, construct that Mike Waterman has talked about. You were able to see some specific regions and territories and the growth that we're generating, you know, far beyond the Northeast.
I think some investors have thought of us as being a Northeast-based company, and maybe we couldn't replicate the success we've seen in the Northeast elsewhere. That couldn't be further from the truth. The reality is we're seeing great success throughout the country. It just depends on what level of maturity we are in terms of each of those markets. But you can see from coast to coast, and we just gave you a few examples. You know, there's really what we have observed is that we have a highly repeatable solution. Okay? And you can see from the cohorts on the left-hand side here, this is a multiple of year one units. By year five, we're at 27x.
These curves don't necessarily look much different than some of the curves that Mike Waterman showed you in some of those territories. On the right-hand side, basically shows our unit economics by territory cohort or by annual cohort, if you will. First, what this includes is all of the costs, including go-to-market costs, inspection costs, arbitration costs, operating costs for the marketplace. It basically is fully burdened, excluding R&D and G&A. It's a fully burdened view of what our unit economics look like for each of our cohorts on an annual basis. What I should mention is, there is a little bit of distortion here from 2020, which is the second point from the right for each of these arrows.
Each of these arrows represents cost of revenue, because that's what we disclose on our financials. That's the way our financials are constructed. In 2020, what happened was, in response to COVID, the company made some pretty significant cost reductions. What that did was artificially improve the profitability actually for 2020 for those cohorts. If you look at the following point on the curve, you won't necessarily see the same level of improvement from year to year because of how much more profitable the 2020 cohort was because of this dynamic. You know, at the end of the day, all of these cohorts are moving in the right direction.
An interesting data point is if you look at our oldest cohort, by year five, costs are 59% of revenue, so call it roughly a 40% contribution margin. When we get to the five-year model, you'll see that R&D and G&A, which is excluded from this, you know, we expect it to come in at around 12% of revenue in total. So if you do some quick math and subtract 12% from, you know, call it, you know, 40% contribution margins, you get very close to a 30% EBITDA margin. Okay. That's without any improvements from anything that we are investing in across the board today.
Just a little bit of context in terms of what gives us confidence when we get to the five-year, you know, outlook and even beyond that in terms of hitting our target EBITDA margins. Okay. We've extrapolated here. Obviously, we've just given you guys kind of the five-year 2026 target in terms of revenue and EBITDA margins. You know, before I get into the numbers, I think, you know, hopefully what you'll walk away from today is an understanding that ACV is a technology company. We are a technology company through and through, as much a technology company as any company in Silicon Valley. Myself, Vikas, Bahman, okay, we all spent most of our careers in Silicon Valley, okay? There's a reason why we're at ACV, okay?
Because we see the same dynamics in terms of a technology company being able to disrupt the legacy industry through technology. Technology flows through every part of our thinking in terms of running the business. When we think about kind of not just growing our revenue, but expanding our EBITDA margins in the context of an online marketplace, a 25% EBITDA margin or even greater is not out of the realm of possibilities for any online business, frankly. Okay. You know, we're very much kind of in a sweet spot in terms of when we think about where we're gonna be in five years. Again, I'll talk through the different pieces of this in terms of how we get there.
I think it's most important more than anything else today for you guys to kind of have that perspective. You know, we purposely spent a lot of time on the technology side to give you guys a glimpse of, you know, what are we spending all this money on? Because, you know, George and I have been talking about, you know, for the last year how we're increasing our R&D spend. You know, well, what are we spending it on? You know, we wanted to give you a glimpse of that today. Okay. First, let's think about the cost of revenue side of the equation. Again, same three pillars. You know, up here is basically what our cost of revenue, so margins would be the inverse for the different lines of business.
Starting with Auction and Assurance, this is already a very profitable line of business for us. That said, we think there's opportunities to continue to expand our margins. You know, what you're gonna see is a common theme here in terms of what are the main pillars and themes that will help us drive towards our target model. First is basically the maturity of our territories. Again, this rinse and repeat model. If you think about in context, you know, the cohorts that we walked through, we have a proven path to generate improved unit economics as territories mature. Secondly, it's investing in technology. And again, technology flows through everything that we do. A lot of the stuff that we talked about on the inspection side, a lot of the things operationally, that Vikas has talked through.
Now we're up to 40% of our transport dispatches completely automated, completely done with software. We're talking about programmatic buying completely done by software. There's a bunch of things that we're doing on the inspection side. I'll say it again in case anybody missed it. We're generating 400 data points on inspections today. With all the things that we're doing that Phil took you through, we're expecting to increase that 5-10x in terms of number of data points. Why is that important? Because that will allow us to give more transparency in terms of the condition of what's a very complex asset, and therefore directly reduce our arbitration costs. If we miss an issue, we incur the arbitration costs because we're protecting the seller against that.
That's why it's very important in terms of margins, not to mention all the benefits you get from having a more transparent marketplace. The other major theme, as you would expect, is just scale economics, right? As we get bigger, there's gonna be natural economic scaling benefits, especially when we get to OpEx. On the marketplace side, basically, there's two different pieces to this, our transport business and our capital business. I'll get into all of these on the next couple of slides, so I won't dig too deep right now. Then SaaS, we actually expect a pretty significant improvement on that side as well. Let me go through each one of these.
Again, in terms of our unit economics with auction fees, and Go Green. I just spoke about arbitration costs, and as we reduce that will expand our margin profile. In terms of buy fees, this is very relevant, when we think about our unit economics and our ARPU. Again, we did not get the full benefit last year of further increases in our ARPU because our buy fees were less than market and didn't basically give us any more revenue streams above a price for $15,000 per car. That's changed as of December 1. Clearly, as used car prices come down, okay, buy fees will, to the extent they scale with the cost of a car transacting, will naturally come down as well.
What we believe is that by finally adjusting our buy fees to be closer to market, and we're still a little less than our physical competitors, basically, we can mitigate a lot of the downdraft on ARPU going forward. How much of it depends on how quickly used car prices moderate. Our buy fee revenue streams will not go down as much as they would otherwise because of the adjustment in our buy fees. That will protect our margin profile. Again, ARPU costs over time, we expect, will allow us to make this an even more profitable business than it is today. Okay, marketplace services cost of revenue. Again, you know, if we think about, you know, transport and capital. Transport, we've talked a lot about.
We're now operating at roughly, you know, breakeven in terms of margin versus losses previously. Since we've already achieved our attach rate targets, really our shift in focus is moving to margin expansion. The target that we've set is a 15% margin profile. That's what we said at the IPO, and we haven't changed that since. In our most mature territories, we're now approaching double-digit margins in terms of our transport business. Again, we know we have another example of something that can be repeatable, but territory density plays a very large role in generating the unit economics that we need on the transport side. As our territories mature, we're going to, you know, see improvements naturally in our unit economics for transport.
Again, as we introduce more automation, all those kinds of things on the technology front, you know, that just further enhances our ability to drive more margins. The other piece of this is ACV Capital. Very, very profitable line of business. Again, it grew 300% last year. We're expecting very large growth again this year. As ACV Capital becomes a bigger portion of this line of business, it's gonna be more accretive to our margin profile. All right. We are updating our target attach rates for ACV Capital. When we went public a year ago, we had targeted a 20% attach rate at maturity. We now believe we can hit at least a 25% attach rate for maturity.
Doesn't sound like a lot, but frankly, you know, for a line of business that basically has a 5% cost of revenue, you know, that could be nicely accretive over time. We're pretty excited about that. Lastly, our SaaS and data services. There's two drivers to our margin, expected margin improvement here. Again, cost of revenue is 75%. You know, last year, we believe we can flip that the other way towards 35%. This year alone, we're expecting a 500-1,000 basis point improvement in margin profile for this line of business.
If you really, you know, kind of peel the onion a little bit and think about the different layers of this, there's the inspections that we provide for a fee, and all the things that we're doing in terms of inspection technology will allow us to expand our margin profile. That combined with increased territory density, because increased territory density also allows us to basically lower our cost per unit for an inspection. Most of those inspections occur on the wholesale side of the business, but it's accretive to this side of the business as well, because if we're getting more scale and lowering our cost per unit, it accretes to the margin profile for our separate data services, which we perform an inspection, we get a fee. If our unit cost is going down, we're gonna improve our margin profile.
The SaaS piece is the side that we're gonna lean a little more into. You're gonna see us leaning more into over the coming years because this is an opportunity for us to, you know, again, create recurring revenue streams that are higher margin that we think are pretty sticky. You know, we're just getting started with MAX Digital. There's a lot of opportunities to kind of go from here over the next five years. We're just getting started. As that increases as a mix of this total line of business between these two revenue streams, then we're gonna naturally see accretion in terms of our margin profile. We feel really good in five years, you know, getting to that projected target cost of revenue and related margin profile. Okay, operating leverage.
Obviously, you know, we've got, if you think about our P&L, we've got marketplace inspections and operations. Technology and development on our P&L is actually collapsed within one line including. Both of those are combined on our P&L. Here we'll take you through some of the numbers in terms of breaking them out separately. Then sales and marketing and G&A, which are also combined on our P&L. We'll break those out separately for you as well. In terms of our inspections and operations costs, as you can see the last few years, we've actually been generating some really nice leverage on a % of revenue basis. We were at 27% of revenue back a couple of years ago, have moved that down to 19% of revenue this past year.
Our target model is to get down to 13% of revenue. The way to think about this is in terms of, again, all the investments that we're making operationally. How that will flow through our P&L and scale again. Kind of these same themes that just flow through all of the modeling that we've done in terms of how do we get to our target model. This again is a pretty discernible trend. If you extrapolate it, actually, you would get to a lower than 13%, you know, cost of revenue. If you just think about it in the last year alone, we've driven down our cost of revenue here, or percent of revenue rather, you know, 400 basis points in one year alone.
We're looking at basically driving another 600 basis points of improvement in five years. Okay, if we look at tech, our technology spend. This is an area we've been leaning into. We didn't actually spend as much money last year as we wanted to. Even though, you know, Bahman took you through some of the numbers, we've ramped up pretty significantly. Frankly, we wanted to, you know, build even a bigger engine, and we're playing a little bit of catch up this year. Keep in mind, our EBITDA burn last year was just a little over half of what we modeled when we went public on substantially greater revenues. The product and tech side, even though we added a lot of resources, you know, we felt that we really wanted to build a bigger engine.
We're playing catch up this year. Even with that, if you look at our five-year model, we're only assuming that we get from 8% of revenue to 7% of revenue. That's really, you know, basically tripling our spend. We're gonna have a big enough engine. Again, some of the geographic diversity that, you know, Bahman talked about is gonna help us here in terms of kind of lowering our unit cost over time. You know, this has a pretty clear path. You know, we won't need to increase our spend here on a linear basis with revenue. Not at all. You know, we're building a lot of great technology that we'll be able to leverage going forward.
Basically, with incremental increases in spend over time, you know, we'll be able to deliver all the kind of capabilities and beyond what we're talking about today. Sales and marketing leverage. Again, here, another example, you know, where you can see we've generated a lot of leverage over the last several years. Here just last year alone, we actually had a 300 basis point improvement on a percent of revenue basis, you know, spent $60 million. This gets back to territory maturity. Again, another, you know, similar pillar. We hire a TM, we hire inspectors, right? We incur these costs to start in a new territory. Over time, as we grow, you know, unless the territory gets so big that we split it, we've just got the same TM, okay, generating a lot more revenue and a lot more leverage, right?
We have been splitting territories, but then we split territories, and they keep growing, and they keep getting more leverage. It's a very repeatable model that we can observe through all the cohort data. What we've modeled out basically in 5 years is doubling our sales and marketing spend on basically a 3.5x or 3.5 times as much revenue, if you do the math, in terms of $1.3 billion versus roughly $360 million last year. That basically cuts the % of revenue in half, also very doable based on all the metrics that we look at. Then lastly, on G&A.
Last year, we, you know, we saw a significant increase in our G&A that related to us taking the company public and kind of building out the team, the systems, the business processes, a lot of the IT stuff to support, you know, a newly public company and support a company that's growing really rapidly. You know, there's no question if you look at all the numbers here, you know, we've been in a hypergrowth phase, and we need to support all that with all of our back-end infrastructure. That said, similar to sales and marketing, you know, we're modeling that we're gonna basically double our G&A spend over the next five years.
We're really not assuming, you know, much in the way of international expansion, which sometimes can drive a lot of your G&A costs as you get into a lot of other geographies. That's not baked into our growth plans right now. You know, therefore, you know, our business is gonna look very similar with the exception of, you know, going into, for example, Canada. Really, you get a lot of leverage on the G&A side. We're not hiring another corporate controller. We're not hiring, you know, another payroll administrator, that sort of thing, right? Hopefully, we're not hiring another CFO. As long as they do a good job, I think I'm okay. Here again, another doubling of spend, you know, which basically takes the % of revenue and cuts it in half over five years.
All of this, when you add it up, you know, basically gets us to the path in terms of, you know, what we articulated in our earnings call last couple weeks ago of $325 million of EBITDA or 25% EBITDA margins. I should mention, by the way, that in terms of this year, and I wanna again reiterate, you know, our commitment to get to EBITDA breakeven exiting next year, okay. There have been some comments in terms of, you know, our EBITDA burn this year is actually more than it was last year. Actually, if you looked at it in terms of our original modeling, percent of revenue were actually 600 basis points better than the path that we articulated when we went public, in which we were looking at the same goals.
We're actually ahead of kind of the path that we've articulated to get to that breakeven. Again, we control a lot of these expenses. You know, if we wanted to meter back any spend at any particular point in time, you know, we could. Frankly, we don't think that makes a lot of sense because of the growth opportunities. Even with that, again, I wanna reiterate that commitment to get there by the end of next year. Then if we just kind of finish up here, almost finish up, you know, with the long-term target model. Second from the right is basically that 25% EBITDA with all those P&L components that I just explained. Then to the far right basically looks at, frankly, a 30% EBITDA target, which we still believe is very achievable.
Based on all the modeling we've done, we think we get there anywhere between $1.7 billion-$2 billion of revenue if we just extrapolate some of these trends. Hopefully, we'll do better, but you know, that's the modeling that we've articulated at this point in time. Obviously, I think you know, we've been a public company now for four quarters. The track record that we're trying to establish is one of credibility with all of you investors. We don't put out any targets that we don't think we can achieve. Doesn't mean it's not easy, it's hard work, but we feel really confident based on all the data we look at and all the trends that we look at, that we can actually execute.
As a public company, we've been able to obviously exceed all of our guidance in the last four quarters, and we're hopeful we're gonna do our best to exceed that going forward. These are all targets that we feel really comfortable with achieving for all the, for all the reasons that I just outlined. Then finishing up here in terms of the balance sheet. $580 million in cash at the end of last year, and that included financing $44 million receivables from ACV Capital, which was financed off our own balance sheet, which made a lot more financial sense versus us borrowing money.
If we finance those, by the way, our cash position would not be that much different than it was when we went public after we raised our money in the IPO. Why is that? It's because we have a negative working capital cycle. All right? We benefit from cash flow in our marketplace, which is the difference between when we get paid by a buyer and when we remit funds to the seller. The seller doesn't get paid until they pass clear title to us that we can then pass to the buyer, right? So there's typically on average about a 6-day lag. That translated into $164 million of float on our marketplace at the end of last year. That's money that's in our bank account. It's not restricted cash. We have full use of those funds.
It is an important aspect of our model if you think about, you know, cash flow generation going forward. Now this year, granted, was a bit of an anomaly because GMV grew so much, right? As GMV moderates, you know, we're gonna see, you know, that kind of moderate the other way a little bit. In normal times with, without this kind of volatility, we would expect that our float will increase as our units grow and our scale grows. Based on the modeling we've done, we're projecting about a $350 million-$400 million float by 2026. Again, that's all other things being equal. There's always puts and takes. That's an accelerator on our cash flow generation from just naturally improving, and getting to EBITDA positive and then grows from there.
It's a great business model, and we've benefited from it obviously in terms of cash flow, and we hope to do that going forward. With ACV Capital, we are looking at other financing alternatives. That said, what we've talked about is as that portfolio gets to $100 million, you know, we would be reaching a level of critical mass that we could start to look at different ways to finance that business, including going into the debt markets. You know, this is basically securitized debt, right? It's securitized by the asset. And we do audits. We can physically check to see that the assets are still there, for example.
It's you know, our competitors basically do the same thing at a much larger scale in which they go to the debt markets and you know, securitized debt carries more attractive interest rates. We're not quite at that scale yet, and we are going to be looking to start you know, financing that potentially in the near term, just based on our existing debt facilities. We have a $50 million debt facility with Credit Suisse, and we have a $160 million line of credit with a consortium led by JP Morgan. We can draw on those lines at any time. You know, we've just we've got half a million outstanding on the Credit Suisse facility just to have a small balance outstanding.
Otherwise, we've been financing it off the balance sheet. Okay, so that pretty much wraps up my section. I'm sorry, I went through this pretty quickly because I wanted to make sure we had enough time for Q&A. You know, with that, I'm gonna turn it back over to George.
Okay. Well, put my microphone back on. Listen, all of your time is very valuable. You know, as we thought about, you know, today, you know, I had spoken to several of you, and again, I mentioned, you know, almost a dozen of you all came to Buffalo, and today was purposely put together based on the feedback I heard from a number of you. You know, our goal today is very simple, was for you to all really walk away with what is, what are, what is our why here at ACV? What are we up to? What are you investing in? When you walk through, you know, these elements today of a company that's proven our growth through very crazy times, Mike Waterman and Kate that really walked you through a proven playbook. We didn't say we're perfect.
You never heard Waterman or Kate said everything we do is perfect. Not every market we went into is perfect. You can call three dealers, you're gonna hear three different things. It's proven over time. The amount we're investing in our product roadmap is significant. We know that. We don't take any of this for granted. We really believe part of our why is by building the strongest data company and the strongest marketplace company, we'll have the best insights, the best decisions were made. We're here to support these dealers. They're not going anywhere. They're not going anywhere. These commercial customers, they're not going anywhere. Somebody needs to step up and help them, enable them to compete. We feel really good about the data and technology we're investing in to make this a better opportunity for all of our customers.
Bill walked through our proven model. I mean, I remember when I got excited about this business, the first thing when I looked at the unit economics, some of you saw me do this slide, one slide privately in the IPO. I was on this one slide, if you remember my unit economics slide in the IPO. I never wanted to leave the slide. This is a fantastic business, right? I mean, that's just a real benefit we have. You're seeing a lot of other companies kinda come and go. They don't, at the end of the day, have a foundation of great unit economics. We really do. What's the most important thing? At the end of the day, the most important thing, and many of you heard me say this, is the team and culture.
You all hear a lot of leaders say that. We tried to give you a little sense today, those that have spent more time in ACV, that is truly unique with us. We spent a lot of your precious time today to go through the team. My whole upfront part, I think I was nine minutes. Why was I trying to rush off the stage? I wanted you to hear from them. I wanted you to hear from, like, what we're building. If you can go to the next slide here real quick. Hold on. Do I have the clicker? Yeah, I got the clicker. All right, here we go. You know, you met, you know, Vikas and Mike and Kate and Bill, and you're gonna hear Sally in a minute. Leanne's new.
Craig, for those who have met, is leading our corp dev and strategy. He's been very busy, okay? We've been very busy. Joe is the founder, and he's always out with dealers. We have an amazing team, but it's not just us. Before we get into Q&A, I was very purposeful starting out with the IPO video because you all heard consistency. I'm gonna leave you with one more video, and then we'll jump into Q&A. Sally does this, I felt even better than I did. Sally will be a little blushing over there, but let's say it in her words.
We lead with a people-first culture. Our people sit at the core of our organization. They drive our innovation, and they drive our growth. We celebrate our inclusion and diversity, and we are proud of our community spirit. We believe that the happiness of our teammates leads to our success, and we invest in them, including offering continuous training, career development support, and arming them with fulfilling work. Our track record of success and investment in innovation is what attracts new team members to ACV. They are energized by the opportunity to be an active participant in the industry disruption we are leading. Our leadership team is seasoned with demonstrated track records of scaling businesses, bringing experience from automotive, consumer, and marketplace businesses. The culture here at ACV is something really special. We have people that I would absolutely put up against the best of the best.
They really have a passion for what they do, and so having the opportunity to see teammates really allowed to excel, given all the tools they need and fully supported, is really a fun activity to do every day.
Enjoy today, and we'll jump into the Q&A. Tim, is that up next?
Yes.
All right. Let's do this.
We've got some mics that we'll be handing out, so frankly.
Can we bring these up here?
Yeah. Why don't you bring the chairs up there? Yeah. We're obviously way behind. I'm gonna ask that we maybe spend 15, 20 minutes with sort of the mics, and then we have a reception hereafter that runs till 6. You'll have more time to spend with the team. With that, I'll let Lee hand this thing out, so.
Hey, this is John Colantuoni at Jefferies. You spent a lot of the presentation talking about ACV's capabilities, but maybe you could go a step further by discussing how ACV's offerings and capabilities differentiate it from other digital players, and just other players in general in the wholesale space. You know, I guess go through what you would consider to be kind of your key competitive moats. Related to that, maybe talking long-term, do you see the digital wholesale market evolving into there being one or two major players, or is there room for three or four large players? Maybe you could just talk about that as well. Thanks.
Yeah, certainly. On your first question, hopefully what you're seeing today, there's not one data point of why you're gonna go work with, let's say, an auction company or a platform company. When you look at the key data points of why you're willing to work with a company, have them be your partner versus the vendor. A vendor is somebody you just go send them a couple cars and, I might go use them, might use somebody else. Our objective is if you look at the buy side of things, will they buy at the end of the day with more transparency here? You'll see this in some of your own research. You'll hear dealers say, "I wish I can buy all my cars in ACV." Why are they saying that?
Because they're making less mistakes. The proof of—in the—at the end of the day, why are the buyers choosing ACV is if you're making, let's say, on average $300-$400 less mistakes, less recon, you're gonna buy more in ACV. On the sell side of things, you know, there's 300 different auctions out there asking for cars every day. I've got different competitors out there, you know, all asking for dealers' cars. Well, there's a lot of folks asking for the supply. If you're out there in your solving Private Marketplace, as an example, if you're solving the buying and selling from inventory management, if you're helping them, you know, create a Live Appraisal event and having your best Saturday you've ever had, actually I'll just start doing that every single Saturday. There's not one thing there.
We're helping them compete. You heard it in the dealers' words throughout the day today, that what you're really hearing them say is ACV is my partner. By going out there and having the others, the them, Mike Waterman calls them the them. We don't usually say their name. If they're all vendors, one's like a marketing portal vendor, and one's like an auction vendor, and they're all vendors. We're their partner, right? Whether they're starting their partnership journey today because of problem one, two, or three, start your journey. They might start in a different way. The wholesale opportunity will likely be our largest contributor of EBITDA long term, likely. I don't know, unless we have our, you know, cloud services thing like Amazon did that. You never know. Just don't ever count out people like Dr. Phil or Abou-El-Raki or others.
I'll say for now, the wholesale will likely be the largest contributor. How you get that business is by building these unbelievable partnerships where you're embedded into that dealer's way of doing business. Now you're no longer a vendor. That, that's how we look at it. Your second question is easy to answer based on what I just said, right? I don't think there's gonna be many players. I don't know if there's gonna be two, three or four or five. I really, I'm not an economist to really think through all the math. If you think, will we have likely several million units going through our platform? Whatever that several is for now, we haven't put our neck on the line just yet.
Whenever we put a number out there, Bill and I tend to hit it. We're always being a little careful there. We are the type of platform that should have several million units coming in it, and however many there are, how many other competitors there are at that point, I don't know. I know we're gonna go out there and you know, over the next, you know, several years, we'll have our share, and we should and have the right to be the leader.
Thanks. Hi. Bob Labick from CJS Securities. Thanks for a great presentation, and your team is fantastic. Just kind of keeping with that theme of your differentiation and what you're bringing to the table, you're changing the industry or intending to, you have to an extent, but you obviously aspire to have multiples of units. How do you sell this? How do you change the behavior of the customers in a big way as opposed to in a small way? It's kind of easy to start and get a few, you know, early adopters, but how do you change the behavior of the customers, and what's that selling process like, to get into larger, you know, changing of behavior?
It really depends upon who you're speaking to at the dealership. A little bit about what are the themes going on in the industry at any one point in time. You know, right now there's a massive theme on consumer buying, right? The dealer principal is so sick of hearing the big e-commerce brands out there on TV. They're sick of the portal companies, right? But if you talk to some of these dealer principals, they want their name out there. If any of you have talked to some of these folks, a lot of these regional dealer groups, these guys have their own planes. They're very successful, and when you're talking to that person, Bob, it's the product we had so far was Live Appraisal.
That was our first solution. Great solution. You heard some of the feedback. For that person, it's, "I wanna be the king of my market and buying cars from consumers, not them, and I'm gonna go spend $X million doing it." If you're talking to the director of wholesale operations for a major group, the theme there is, "I don't wanna go wholesale everything. I wanna make sure I keep the things in my group." Right? If you call on that person, that person's like, "How do I become more efficient and keep the right assets everywhere?" If you're calling the buyer, right, the buyer at that group, it's like, "I wanna buy cars smarter. I wanna make less mistakes." Bob, it depends on who we're talking about, right?
We saw that early on. I mean, some of the things I'm telling you, some of you have met me now for a handful of years, and a couple of folks here in the room invested with us privately. You know, we saw that. We were listening. There are, like, common themes, by the way, and those themes never go away, they just add another theme. If you listen to your customers, and that's what Greg Borowski was talking about. You know, we happened to work together in our prior life. We did the same thing. We just listened to our customers. You know, they tend to tell you, "Here are the things you need." If you have a humble team, but massively just intelligent, smart folks, you saw I couldn't wait to get my team up here. You've got...
If you listen well, and you've got the right culture, and you're focused on delivering, you solve the problems for A, for B, for C. Now, this is not an overnight thing. I mean, we're selling, whatever it is, a few hundred thousand units right now a year. It's great, but we're still humbled by it. We still have a long ways to go. We still have a lot more work to do, but we've got the team to do it.
Thanks.
I think I'm next. Stephanie Moore with Truist. I think continuing on the last question, I think today really demonstrated, you know, simply put, there's a lot going on and a lot to be excited about as, I think, as you said, continue to make the process for dealers more efficient or easier for them. I'm curious what you're going to have to do over the next several years to get your sales team or whoever will be the ambassador to ACV for the dealers to fully understand all that you can bring to the market and all that you can do.
Yeah. There's a combination when you're building a sales and product org of having. Think about it as relationship managers and then product sales experts. You know, a lot of organizations have a hard time, especially. I'm thinking, I've only done B2B, you know, I'm not gonna pretend I'm, you know, I have any more. B2B organizations, you need this combination of relationship management and then experts. As part of this plan we've given you all, we've got all that built into what we're doing. Not only do we have now over 150, whatever it is, 160 territory managers who are out there building relationships every day.
Not only is there 22 regional sales directors who are all really senior level, you know, some of them have ran dealer groups and a bunch of things. Not only do you have our three, you know, vice presidents who are walking into dealerships. Not only do we have a strategic accounts group that's about 20 people now who are out there talking to strategic accounts. Not only do we have over 50 people on the phone right now in inside sales talking to dealers every single day, right? By the way, we give you those numbers of marketplace participants, those are active. We don't tell you if 30,000 people registered for ACV. I know others like give you all these silly numbers. No, we're not talking about registration. Yeah, we have almost everybody registered. Great. No, these are active participants.
These conversations are folks that you're in a conversation, and then what you do is you go, "Hey, we'd love for you to take a second to have a quick demo." We are building these specialized teams who then go in and walk you through some of the stuff you saw here today. Think B2B, it's all about relationship management and then product sales experts. If you just do those really, really well, right? You see the magic of going, you know, how are we next to launch it with you? How are we the next to go live?
Great presentation. Thanks for all the info. It's Michael Graham from Canaccord Genuity. I just wanted to ask on if you could comment on the balance in the marketplace. You know, it seems like supply is very much the bottleneck, and just maybe talk about the coverage on the demand side. You know, you laid out a lot of great initiatives to increase supply into the marketplace from your dealer base, and that seems like a good linear path. Are there any things you can do like commercial or other opportunities to make a step function in terms of bringing supply into the marketplace?
Certainly. On the commercial side of things, we're still early. We've got a few rental car companies just starting to use us. I wouldn't say rental car, for example, they have their own direct sales. They really try to sell the car themselves, right? It's the way rental works. We've got a couple starting to use us. Always good to get in there. We've got a very small fleet company starting to use us, think regional small fleet. When you look at the two investments we had going on, look at us prior to Monk. Okay?
I just want to go like the prior to our recent Abou Laraki and team coming on board and you know we had our single inspection app that is now complete and now we can have the requirements of a commercial company and if they want the inspection a little different they want damage estimate different they want the report back for whatever reason we now can do that. We're now 90+% of our team is using SIA. 92%. We you know we had to build the platform that had all this customization and now we had to get it out and train all of our folks in this new platform. That was one investment. Now at least I can sit down like we have this.
I don't wanna oversell this, but we have a very high-end OEM that doesn't sell a lot of units a year, right? These are high-end OEM who will be doing their very few off-lease inspections, right? How do you take like this high-end OEM, right? How do you actually help them solve their problems? Private Marketplace, as I mentioned, has been unbelievable for dealer groups. It's not yet there, I would say for broadly all the commercial accounts. It's still within ACV proper, okay? We do have a I would call it in beta, a white label solution. It's not ready to go live yet. I know when I go out there and we sell things, we don't oversell anything. Some companies do that.
We say, "Hey," we'll start to show them a white label product. That's step one. We're starting to tell the commercial folks, "Hey, by the end of this year, early next year," and if my team gets it done faster, wonderful, I won't have, you know, burned any bridges. We're out there articulating that in a way more for like a next year thing on the private label. On the open marketplace, if you could build a relationship that just become a next step, okay? Think about it as, let's say you have your own direct sales efforts, you work with X, Y, and Z, just give us a window. We're starting, I mentioned with the rental cars, just give us a window. Give us a 20-minute window, and we're starting to get some of that back there.
I would say the majority of the units in this year's forecast is dealer, right? We broke it down to those two groups, kinda like the retail dealer and then like the consumer to dealer, which is like the Live Appraisal and those types of products. We gave you those segments earlier. Those is the-- that's a far majority of the units in this year's plan, unless some of these products give us a breakthrough faster than I'm articulating.
Great. Thanks. I guess we'll probably break there, and then if you've got any more, we'll
We're here to talk some more. We're here to socialize. We're here to, you know, you've got some of my teams you can corner as well. But again, thank you so much for spending your entire day with us. We really appreciate it. Thanks so much.