Amber, a one-year-old EV warranty startup, is expanding its nationwide reach, offering a new remote diagnostic scan, and increasing its vehicle coverage. The company, which recently received a $3.18 million seed round, is building on its success by partnering with Lexington National Insurance Corporation to bring its aftermarket warranty product, AmberCare, to 47 states. The only states not included in the expansion are Alaska, Massachusetts, and California, although Amber expects to be live in the latter two by the end of the year.
AmberCare provides a suite of warranty plans that cover various parts of the electric drivetrain and service at authorized shops. The company is also launching a VIN-specific remote diagnostic inspection product for Tesla vehicles, dubbed a “telehealth” checkup option. For $99, customers can purchase a comprehensive remote inspection, while a complimentary version will be offered to those who apply for AmberCare.
CEO and founder Joe Pak attributes the company’s success to its focus on meeting customers where they are – online. This strategy has led to a steady growth rate, with Amber about to acquire its 100th customer. Pak emphasizes that the company’s approach to customer acquisition has been met with skepticism, but one customer at a time, the startup has built a reputation for providing a valuable service.
The remote diagnostic inspection product allows Amber to tap into Tesla’s diagnostics toolkit, providing access to firmware codes, alerts, and battery management software information. This data enables Amber to identify potential issues before they become major problems. The company’s six employees, including a senior remote diagnostic technician and a former Tesla service advisor, are skilled at interpreting this data, which is “magic” according to Pak.
Amber’s new product and expanded coverage could open up new lines of business, including partnerships with fleet owners and dealers to develop a pre-certified program based on the information the startup can remotely pull off of the cars. This could be a significant boon to Amber’s bottom line and address the issue of used EVs, where dealers are often tight-lipped about the vehicle’s battery health.
