Watch out AAA: Urgent.ly Goes Uber, Takes on Roadside Assistance

“Uber-ification” has been extended to many local segments, including hotels, restaurant reservations and promotions. How about roadside assistance?

Asserting that AAA and other roadside assistance services have outdated economic models and technology, local media and commerce vet Chris Spanos (AOL, Repair.com and Seniorchecked.com ) is leading a team launching Urgent.ly. The Washington D.C.- area company, which provides flat-rate repair truck assistance rather than charging annual insurance-like fees (i.e. $99), has done hundreds of service calls and is set to go nationwide. It completed its seed round of funding in March 2014, and is in the process of closing a larger, pre-series A round.

Like Uber, Urgent.ly has a free iOS App that contains a motorist profile and credit card information. Customers can easily tap their phones for a repair truck, and a live map lets them see where the trucks are at all times in the process. An additional feature is “FamilyView,” which allows drivers to link their app to a driving-age child, spouse or parent.

Spanos says 53 million customers are currently paying $70 to $130 for annual access to AAA, but most under-use use the services. The more serious issue with AAA is that customers often have to wait too long for a tow — some don’t get served within AAA’s 90 minute window. The problem? AAA only pays tow truck companies $20-25 and they have real mileage restrictions. The low payments mean that tow truck drivers will always give preference to cash calls from non AAA members. Urgent.ly’s on demand pricing takes care of that, says Spanos.

He also notes that people use AAA for a variety of services, of course, such as discounts to Amtrak, hotels, stores, and entertainment venues. “We may put in promotional discounts for auto-related services” at some point, Spanos notes. The key, however, is better transparency. “Transparency is the future of roadside,” he says.