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Who are the major players in the US breakdown market?
Hello! Thanks for your question about the major players in the U.S. breakdown market. The short version is that there are approximately 10 different roadside assistance services in the U.S. and while the rankings may vary the same companies are, for the most part consistently identified as being at the top of the market. The companies are multi-million dollar companies and provide service on a nationwide basis, however, they do not produce lists of actual third-party towing companies that they use to service their customers. Below you will find a deep dive of my findings.
METHODOLOGY
In order to research this issue I first considered numerous sites that provide rankings of roadside assistance companies. I then reviewed each company for things such as their size, regional concentration and customer satisfaction. After that I reviewed the top individual towing companies in the U.S. in order to provide the list found below.
FINDINGS
The roadside assistance industry is a $6 billion industry that encompasses over 38,000 businesses. Over the years multiple companies have formed that provide these services. Essentially the structure that is used is for a major company, e.g. AAA to sell membership plans to consumers and these plans entitle the members to emergency services such as towing, jump starting etc. While the companies that sell these plans are not insurance companies in the traditional sense of the term, they are nevertheless providing services that help to protect their members in the event of a crisis. Then, when called, the companies provide dispatch services that call individual tow/wrecker services to go to the stranded motorist.
The companies that I have identified were listed on multiple sites, e.g. Top Ten Reviews, MoneySavingPro, Security Gem, and Consumeraffairs. They each have high customer reviews and provide services on a nationwide basis. They are:
1. Good Sam Roadside Assistance/Good Sam Enterprises
This company is almost always listed in the top 5 of popular companies. It's sales are valued at $4.26 million. Good Sam has a network of over 40,000 facilities in the U.S. and Canada. The individual providers are chosen on an individual basis based upon proximity to the customer.
2. AAA
AAA is listed as having annual sales of $454 million. It is made up of over 50 clubs and has more than 50 million members. It provides services to customers across the U.S. and internationally as well. AAA provides 24/7 assistance to its customers.
3. Allstate Motor Club
Even though Allstate is an insurance company, it also provides direct roadside assistance via its Motor Club. This club is identical in nature to the other roadside assistance clubs in that it provides 24-hour roadside assistance. It is also consistently ranked as among the best in the business, leading me to include it in this listing. It's sales are listed as $7.8 million.
4. National Motor Club
Founded in 1956, this company has sales listed at $4.8 million. And, as its name implies, it is a national organization. It provides 24-hour roadside assistance that includes towing, jump starting, changing tires etc. According to its website it appears that its tow services are provided directly by the company, whereas other services such as changing tires are arranged, possibly through other providers.
5. Paragon Motorclub
Paragon provides 24-hour roadside assistance using its own dispatches. The services that it provides are comprehensive in nature. The company also boasts that it is a nationwide company and that it does not provide its services through franchises. While I was not able to locate a sales figure, the company is listed as being in business for 15 years by the Better Business Bureau. The company states that it has 3 dispatch centers, two of which are in the U.S. and that it uses 30,000 direct service providers.
6. AutoVantage
Like its competitors, AutoVantage also provides 24/7 nationwide towing. It provides these services, which also include things such as jump-starting, flat tire assistance, etc., through a network of over 15,000 service providers. The services are provided nationally and the company is part of a significant group of affiliates that has a combined sales listing of $1.169 billion.
7.Better World Club
Better World Club markets itself as the only eco-friendly auto club in America. It claims to donate 1% of its revenue towards environmental cleanup. It, like its competitors, provides 24/7 roadside assistance throughout the country and it also does this through sales of tiered plans from which customers can choose. Sales are currently listed at $0.11 million. I was unable to determine the exact number of service providers that the company uses.
8. Blink
Blink Roadside Assistance is another roadside assistance company that provides 24/7 service through a network of providers. The company claims to handle over 8 million service calls/year and, unlike it's competitors, it does so through a la cart type pricing, e.g. $39 for roadside services and $69 for tows up to 5 miles with an overage charge beyond that. I was unable to locate any sales figures for the company.
9. Signature Motor Club, Inc./BP Motorclub
BP Motorclub is frequently listed as being among the top roadside assistance companies in the U.S. However, BP actually provides these services through another company, Signature Motor Club. This company, under the auspices of BP, provides 24/7 roadside assistance through a nationwide network of service providers. All major services are provided and the extent of services is dependent upon the plan that is selected. Signature is located in Northbrook, Illinois and has sales of $0.31 million.
As was identified in the request, major car companies do provide roadside assistance plans, but these plans are typically farmed out to 3rd party providers. Such is the case with GM. GM Motor Club is frequently identified as one of the best roadside assistance companies in the U.S. The plan is actually administered by National General Motor Club. Multiple plans are available and they are available 24/7 through a network of over 35,000 providers.
INDIVIDUAL TOW COMPANIES
Drilling down deeper, I checked on the top towing companies in the U.S., based upon their reviews. The top ranked companies are listed below. The top ranked companies are not national companies, but rather, are the companies that have A+ ratings with the Better Business Bureau. The companies, in descending order of ranking, are:
CONCLUSION
To wrap it up, the major roadside assistance companies in the U.S. are all national in scope, the top two being Good Sam Roadside Assistance and AAA and none of them provide lists of the companies that they actually use to provide services directly to the customers. None of the top 10 individual towing companies are nationwide companies; rather, they are locally owned companies serving small regions.
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