Caterpillar Buys Heavy Equipment Sharing Company, Yard Club

 Yard Club

Yard Club

Feeling the pressure of 9 straight quarters with a decline in total revenue, Caterpillar has acquired the equipment sharing startup, Yard Club, to get help dig themselves out of the dirt.  Their most recent quarter was the company’s first positive revenue quarter since November of 2012. 

Yard Club is one of a few companies that have taken advantage of the rise of the “sharing economy,” allowing users to rent their idle heavy construction equipment to other peers.  It’s truly a great concept, equipment is extremely expensive and any idle time greatly impacts the return on investment.  Using web and mobile apps, the system gives companies an easy way to monetize and manage their fleet of equipment.  For renters, it gives them more availability and competitive pricing for the equipment they need in a hurry.

Back in 2015, Caterpillar strategically financed Yard Club, for an undisclosed amount.  The equipment giant needed only 2 short years for proof of concept before diving in head first.  Caterpillar will now be able to profit off of one of the concepts that has led to a decline in new equipment sales in the past few years and it’s a step in the right direction in terms of technological advancement.  According to Yard Club’s website, they helped manage over $120 million worth of equipment transactions across 2,500 construction professionals in 2016.

Full Story: Caterpillar acquired Yard Club, a marketplace for construction equipment | Tech Crunch