Join our Waitlist for Expert Advice!

This Company Uses Machine Learning to Find Owners of Recalled Cars Recall Masters was founded by a veteran programmer with $500,000 of his own money. Now it's seeking a valuation of more than $40 million.

By Stephen J. Bronner Edited by Dan Bova

Westend61 | Getty Images

When a car company issues a recall, it's typically on dealerships to reach out to affected customers. But since vehicles can change hands, leaving records out of date, dealers aren't always able to provide drivers with this at times vital information.

One company that addresses this issue is Recall Masters, founded by programmer Chris Miller.

Related: This Is the Year of the Machine Learning Revolution

Recall Masters, which employs 20 people and even a lobbyist in Washington, D.C., collects data from more than 50 different sources, then utilizes machine learning to analyze it. The startup can then determine if a vehicle qualifies for a recall and who its current owner is -- even if it has been resold multiple times -- by poring over billions of transactions, according to Miller. He dubs the process "digital forensics."

Image credit: Chris Miller

"We then make it possible for dealerships to contact those vehicle owners and get them in to have their recall fixed," Miller told Entrepreneur in an email. "The aim of everything we do is to protect automotive businesses and consumers and help [original equipment manufacturers] and dealers build lasting customer relationships."

You only have to consider the Takata airbag scandal to see the need for a solution such as Recall Masters. The Japanese company pleaded guilty on Feb. 27 to wire fraud charges after it was discovered that executives had attempted a cover-up of its defective airbags, which have been responsible for at least 16 deaths. Four car companies -- Ford, Honda, Nissan and Toyota -- were also recently sued over their alleged knowledge of Takata's problematic airbags, which have shot out shrapnel at car interiors.

Related: Toyota Recalls 3.37 Million Cars Over Airbag, Emissions Control Issues

The federal government "does not collect or keep data on the number and how dealerships deal with recalls," the National Highway Traffic Safety Administration told Entrepreneur via email. According to Recall Masters data, however, 61 million vehicles were recalled in 2016, setting a record for the most vehicles recalled within a single calendar year.

The company brings in revenue by selling its software-as-a-service platform to dealerships, automakers and car rental companies.

"Being a relatively new upstart in an established industry resistant to change, Recall Masters had to very slowly secure relationships and centralize data across every major automotive manufacturer," Miller says, adding that the company was in "incubation" for six months.

Related: Note 7 Fiasco Could Burn a $17 Billion Hole in Samsung

Most of Miller's prior experience has been in building marketing automation software, including a stint at Criterion Networks. He's worked with financial institutions such as HSBC and Washington Mutual as well as car companies such as Mercedes and BMW. He invested $500,000 of his own money to build Recall Masters. Now, he says, the company is looking to raise funding and receive a valuation of more than $40 million.

"I have long wanted to channel my abilities into something that is cause-oriented," says Miller, who started programming when he was 9. "I like to think of Recall Masters as a company with a cause -- we're truly trying to make America's roads safer."
Stephen J. Bronner

Entrepreneur Staff

News Director

Stephen J. Bronner writes mostly about packaged foods. His weekly column is The Digest. He is very much on top of his email.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Money & Finance

The Government Is Forcing Business Owners to Share Personal Data or Get Fined $10,000 — So Why Don't More People Know About It?

The Treasury Department wants to know who owns your business, and the smaller your business, the more attention you should pay.

Money & Finance

Customers Have a Favorite Payment Method — But 30% of Businesses Don't Accept It. Are You Driving Business Away?

This article examines the surprising gap between what consumers want in payment options and what small businesses currently offer. It also provides strategies for small business owners looking to adapt to these preferences and enhance customer loyalty.

Leadership

Could We Have The First Native American Woman Governor? DEI Expert Weighs In On What Allyship Should Look Like If History Is Made.

We can all learn more about what it means to be a better ally for those who are the "firsts" in their space. Here are three strategies around allyship this DEI expert recommends to her diversity, equity and inclusion (DEI) consultancy clients.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Business News

'Additional Human Touch': Starbucks Has a Turnaround Plan That Includes Buying 200,000 Sharpies. Here's Why.

Faced with declining sales, Starbucks has a comeback plan that involves several changes to stores and menus. Here's a look at the changes coming to your store.