Copart

Copart benefits from multiple reinforcing moats. Network effects: a large, global buyer base bids on insurance‑sourced inventory, improving sell‑through and returns; management cites ~1 million members across 185+ countries and over 4 million units sold in the last year.

Switching costs: insurers value end‑to‑end services, title processing, logistics, and catastrophe response, and often integrate operationally under multi‑site agreements. Efficient scale and cost advantages: Copart’s dense, largely owned yard network lowers transport, cycle times, and storage costs and is expensive for new entrants to replicate.

Technology: its VB3 auction platform, C360 imaging and mobile apps enhance merchandising and conversion. In the UK, the CMA described Copart as “market leader by a significant distance,” which corroborates its competitive edge.

Principal threats are from long‑term changes in accident rates (ADAS), insurer fee pressure, regulatory changes that limit who can buy salvage, and continued competitive responses from RB Global’s IAA, but the breadth and durability of Copart’s advantages argue for a strong moat.