Gumtree to make NZ appearance through NZME deal?

Australian listings operator Gumtree wants to bring its Carsguide brand to New Zealand, partnering with NZME.

AutoTalk says the pair announced the signing of a memorandum of understanding (MOU) aimed at leveraging Gumtree’s existing automotive brands and its technology platform.

It is unclear which brands (of Gumtree Cars, Carsguide, and Autotrader) will make it to New Zealand. AutoTrader here operates under the majority ownership of Optimus Group.

NZME Chief Executive, Michael Boggs, said the automotive listings market in New Zealand is worth $125.3 million annually. It is currently dominated by Trade Me.

Boggs said this is an opportunity for NZME. He added that automotive dealers had expressed interest in increased competition. 

“The new marketplace would capitalise on NZME’s extensive audience reach and Gumtree’s technology, providing an attractive alternative for dealers and consumers alike,” Boggs said.

The partnership, initiated by Gumtree Group last year, also includes a content-sharing arrangement. Under this, NZME’s Driven Car Guide will feature selected Carsguide automotive reviews and articles. Advertising revenue will be shared between the two entities.

Gumtree Group Managing Director, Tommy Logtenberg, described the partnership as an exciting development, stressing the significant demand for greater competition in New Zealand’s online automotive sector.

The MOU includes an initial evaluation period investigating marketplace potential before a more formal launch.

Trade Me said it is not surprised by NZME’s return to the marketplace which it had anticipated.

Jeremy Wade, head of motors at Trade Me commented: “Our focus will continue to be on doing what we do best—driving value for our dealers to help them be more successful through our data and insights products, and increasing our audience reach.”