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It’s already been 18 months since we wrote about the emergence of what we believed could be an important new trend: the growth of auto-switching services. Since then, we have watched as a series of new players has begun playing this new game. Customers continue to sign up – perhaps as many as 200,000 across Europe – and we’ve spotted no fewer than twenty auto-switchers across the world, several of whom are increasingly well funded. We have revisited this intriguing trend in some recent research, increasingly convinced that incumbents need to start taking the threat seriously.
For those of you unfamiliar with the concept, auto-switchers are next-generation price comparison sites, reimagining the one-off, manual tariff switching services that companies like GoCompare, Moneysupermarket and Selectra offer residential energy users. Typically, you register your home and criteria online and the auto-switcher will run an algorithm, or even use AI, to find the best deal on the market to suit your preferences (price savings, service, green) then switch you whenever it flags up that savings can be had. Timings & authorisation vary, but the idea is that you only ever personally need to take action once at the start (unless to update preferences) then forever live in complete security that the hassle of switching is removed from your To Do list forever. Some services operate membership fees (Flipper) and others rely on commission (comparison sites, Labrador) or optional hardware (June), but all share the goal of permanently soothing the perennial consumer headache that is finding the best supplier.
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