• This thread is just the tip of the iceberg.The people ahead of the curve aren't Googling for answers — they're already in here, having the conversations you haven't found yet. DealerRefresh is free.Get the full picture →

Thoughts and questions about TDDS 2.0 (Toyota Dealer Digital Solutions)

AI Summary

Toyota dealers are questioning whether TDDS 2.0 enrollment is mandatory to use approved vendors and expressing frustration that costs have increased significantly (up to 4x higher) compared to previous negotiated rates, with some alleging that Shift Digital profits from vendor fees while restricting dealer choice and threatening inventory withholding for non-compliance. A year after initial complaints, dealers report the program did materialize with tangible cost increases, though one participant notes the initial outcry may have been somewhat speculative. The core issue is whether dealers benefit from centralized vendor management or are simply paying more for reduced autonomy and an additional middleman taking a cut.

Rick Buffkin

Sausage King of Chicago
Oct 29, 2009
771
895
Awards
10
First Name
Rick
Ok guys....

Can any of you guys confirm for me that I understand this correctly.

If you're a Toyota dealer, in order to use any of the providers thats on the TDDS 2.0 list (website providers, Chat providers, Service Appt Scheduler providers, etc.. ), you (the Toyota dealer) have to enroll in the TDDS 2.0 program. The provider will not provide services to Toyota dealers that are not on the TDDS 2.0 program.

Did I hear that correctly???
 
Last edited:
It appears that is correct, and looks like I will have to pay about 4x more for the same thing that I already have with my current provider with "Shift's negotiated rates"
Well to be fair Shift needs their 30% fee to pay for their valuable expertise. I'm also super excited about their upcoming recommendations to just buy MORE stuff and spend more, all the time... yes the strategy is buy more stuff and spend more.

BTW what happened to Toyota smart path (DR) where to continue using the program, you had to choose a pre-defined CRM provider? I guess that didn't go over well with the dealer body? Imagine that.




Edit: Just wanted to add there's no negativity here in this thread, just a driven passion to win with Toyota and do the best we can. Sometime's that passion fuels dialog regarding business decisions which might be perceived as negative, it's absolutely not though. Having uncensored open dialog is crucial, if we can't talk about it, we won't grow or learn, we'll kid ourselves into mediocrity.
 
Last edited:
  • Like
Reactions: Will.I.am
Here's what I've heard...
- Shift Digital gets paid by each vendor per month per dealer serviced
- Shift Digital gets paid by the dealers/OEM?.
- Shift Digital decides which vendors they let in (if the vendor doesn't pay, they don't get in... not based on best vendor for the dealer)
- Dealers no longer have the freedom to do business with the vendors they prefer/gives them the best results.
- Shift goes so far as to threaten dealers with withholding inventory if the dealer doesn't comply with using only "approved vendors".
- Because Shift Digital charges the vendor a fee and the OEM/dealers, the actual cost is higher than if the dealer had the freedom to choose for themselves with no middle man service like Shift Digital involved. What's the benefit??

If this is all true, it's a little scary. This post is also rather enlightening:
https://www.drivingsales.com/rico-olinger/blog/dear-shift-digital-we-dont-need-you-in-canada
 
Here's what I've heard...
- Shift Digital gets paid by each vendor per month per dealer serviced
- Shift Digital gets paid by the dealers/OEM?.
- Shift Digital decides which vendors they let in (if the vendor doesn't pay, they don't get in... not based on best vendor for the dealer)
- Dealers no longer have the freedom to do business with the vendors they prefer/gives them the best results.
- Shift goes so far as to threaten dealers with withholding inventory if the dealer doesn't comply with using only "approved vendors".
- Because Shift Digital charges the vendor a fee and the OEM/dealers, the actual cost is higher than if the dealer had the freedom to choose for themselves with no middle man service like Shift Digital involved. What's the benefit??

If this is all true, it's a little scary. This post is also rather enlightening:
https://www.drivingsales.com/rico-olinger/blog/dear-shift-digital-we-dont-need-you-in-canada

Very sad if true as I never dreamed Toyota would succumb to this model, especially in a time when auto sales are starting to slow.
 

✨ AI Highlights

Toyota dealers are questioning whether TDDS 2.0 enrollment is mandatory to use approved vendors and expressing frustration that costs have increased significantly (up to 4x higher) compared to previous negotiated rates, with some alleging that Shift Digital profits from vendor fees while restricting dealer choice and threatening inventory withholding for non-compliance. A year after initial complaints, dealers report the program did materialize with tangible cost increases, though one participant notes the initial outcry may have been somewhat speculative. The core issue is whether dealers benefit from centralized vendor management or are simply paying more for reduced autonomy and an additional middleman taking a cut.

Replies Views 13 11,889 Started Last Reply