Also, do you have any insights into how they are progressing in Germany and Western Europe? From reading the transcripts it sounds like execs are positive directionally but I don't have hard numbers. This could also be a growth area given them stating the market size is similar or greater than USA.
Do you have any comment on q2'f24 RBA earnings transcript? Specifically, the RBA CEO mentioned that an insurance partner who previously split salvage volumes decided to select IAA/RBA as their sole provider. The CEO said it would add 40k annual salvage vehicles in USA. The reasoning provided was RBA over delivered in comparison to their competitor (I am assuming that is CPRT).
Thanks for pointing out the RBA call. Kessler's answer was pretty vague and didn't provide any details or specifics. It might be that IAA "over delivered" in all relevant aspects. Or maybe IAA had the edge over CPRT due to # of locations in a specific geography. Or maybe IAA underbid this contract to win all the business of this particular customer.
Also, one thing I have read many times in former employee/exec interviews is that for decades, the insurers have tended to switch between IAA and CPRT and play them off each other. IAA may have won this new business mostly because that was a factor.
Thank you for the quick reply. Yes, I thought CPRT was taking market share from IAA in the insurance segment; for eg Geico over the past year. So when I read that from RBA I was intrigued. Your explanation makes sense to me. Also, 40k annualized vehicles is about 1% of cars CPRT sells annually.
copart is an amazing business and I’m a happy shareholder. good job capturing some of the insights into this gem.
Thanks! I've got some more interesting stuff that I'm holding back for a future post. Stay tuned.
Also, do you have any insights into how they are progressing in Germany and Western Europe? From reading the transcripts it sounds like execs are positive directionally but I don't have hard numbers. This could also be a growth area given them stating the market size is similar or greater than USA.
Thank you for the article!!
Do you have any comment on q2'f24 RBA earnings transcript? Specifically, the RBA CEO mentioned that an insurance partner who previously split salvage volumes decided to select IAA/RBA as their sole provider. The CEO said it would add 40k annual salvage vehicles in USA. The reasoning provided was RBA over delivered in comparison to their competitor (I am assuming that is CPRT).
Thanks for pointing out the RBA call. Kessler's answer was pretty vague and didn't provide any details or specifics. It might be that IAA "over delivered" in all relevant aspects. Or maybe IAA had the edge over CPRT due to # of locations in a specific geography. Or maybe IAA underbid this contract to win all the business of this particular customer.
Also, one thing I have read many times in former employee/exec interviews is that for decades, the insurers have tended to switch between IAA and CPRT and play them off each other. IAA may have won this new business mostly because that was a factor.
Thank you for the quick reply. Yes, I thought CPRT was taking market share from IAA in the insurance segment; for eg Geico over the past year. So when I read that from RBA I was intrigued. Your explanation makes sense to me. Also, 40k annualized vehicles is about 1% of cars CPRT sells annually.