Carvana

Carvana is an online used car retailer based in Tempe, Arizona.[1] The company is known for its multi-story car vending machines, and in 2018 it was reported to be the fastest growing used car dealer in the United States.[2][3]

Carvana Co.
TypePublic
NYSE: CVNA (Class A)
Russell 1000 Component
IndustryE-commerce / Car dealer
FoundedJanuary 2013 (2013-01)
FoundersErnest Garcia III
Ryan Keeton
Ben Huston
Headquarters
Tempe, Arizona
,
U.S.[1]
Area served
United States
Key people
Ernest Garcia III, Chairman/CEO
ProductsUsed cars
Revenue$3,940 million (2019)
−$365 million (2019)
Websitecarvana.com

History
Carvana Tempe vending machine

Carvana was founded by Ernest Garcia III, Ryan Keeton and Ben Huston in 2012. The company's initial funding round came from the used car retailer and finance company, DriveTime.[4]

In November 2013, Carvana opened its first iteration of a car vending machine. In 2015, a fully automated, coin-operated version of the signature car vending machine opened in Nashville, Tennessee.[3]

In April 2017, the company went public and began trading on the New York Stock Exchange under the symbol CVNA.[5]

As of May 2020, Carvana's as-soon-as-next day delivery was available in 261 markets across the country.[6] In Q2 of 2020, the company reported a 25% increase in vehicle sales, as a result of physical dealership sellers being closed as a consequence of the COVID-19 pandemic. Carvana's had a gross revenue of $1.12 billion, up 13% for the months April–June 2020.[7]

Business

Carvana operates as an online-only used car dealer that allows customers to shop, finance, and sell or trade-in cars through their website.[8][9][10] The company gives customers the option of having their purchased vehicles delivered to them or they can choose to pick them up at one of the company's 24 car vending machines.[9] Vehicles come with a seven-day return policy.[11] In response to COVID-19, Carvana introduced touchless delivery and pick-up in March 2020.[12]

The Houston Chronicle dubbed the company the “Amazon of Auto”.[13] In 2019, it sold 177,549 vehicles and posted annual revenue of $3.94 billion, making it the third largest used-car retailer in the U.S.[14]

Acquisitions

In 2017 Carvana acquired rival automotive startup Carlypso to enhance vehicle data and analytical tools.[15] In April 2018, Carvana spent $22 million to acquire Mark Cuban-backed Car360 for its smartphone technology for taking vehicle photos with 3D computer vision, machine learning, and augmented reality.[16][17]

Sponsorships

Carvana is a sponsor of the National Hockey League's Carolina Hurricanes, USL Championship's Phoenix Rising Football Club since 2018,[18] and IndyCar Series driver Jimmie Johnson since 2021.[19]

References
  1. Ringle, Hayley. "EXCLUSIVE: See inside Carvana's new Tempe headquarters". bizjournals.com. Retrieved November 9, 2018.
  2. Stock, Kyle (September 20, 2018). "Car Shopping by Click Hits Critical Mass". Bloomberg. Retrieved October 31, 2019.
  3. Lekach, Sasha (March 21, 2019). "Pick up your used car at Carvana's newest car-sized vending machine". Mashable. Retrieved October 31, 2019.
  4. "Amendment No 2 to S-1/A". Carvana via SEC Edgar. April 17, 2017.
  5. Weinberg, Neil; Metcalf, Tom (June 6, 2017). "Cars in Vending Machines, a Fading IPO and an Ex-Con Owner". Bloomberg News.
  6. Berthiaume, Dan (May 8, 2020). "Carvana rolls into 100 new markets". Chain Store Age. Retrieved June 4, 2020.
  7. Naughton, Nora (August 10, 2020). "Growth in Online Shopping and Used Cars Lifts Carvana, Attracts Competition". The Wall Street Journal. Retrieved August 10, 2020.
  8. Dahlberg, Nancy (April 12, 2016), "Online used-car retailer Carvana expanding to Miami", Miami Herald
  9. Farmer, Blake (November 12, 2015), "Why Nashville's Car Vending Machine Might Be More Than A Gimmick", Nashville Public Radio
  10. Dyer, Ezra (March 23, 2016). "Which Car-Buying Site Offers the Most for Your Ride?". Popular Mechanics. Retrieved April 16, 2019.
  11. News, Savannah Morning. "Carvana launches service in Savannah". Savannah Morning News. Retrieved April 16, 2019.
  12. Gorzelany, Jim (March 17, 2020). "Best Ways To Buy A Car In The Age Of Coronavirus". Forbes. Retrieved June 4, 2020.
  13. Takahashi, Paul (March 1, 2019). "Group 1 Auto makes inroads in online sales". HoustonChronicle.com. Retrieved May 6, 2020.
  14. Deagon, Brian (February 26, 2020). "Carvana's Earnings Miss Drives Its Stock Sharply Lower". Investor's Business Daily. Retrieved February 27, 2020.
  15. "The Amazon Of Cars Just Made Its First Acquisition". Fortune. Retrieved April 16, 2019.
  16. "Carvana acquires Car360 for $22M to improve its car-buying platform". TechCrunch. Retrieved April 16, 2019. Car360 uses 3D computer vision, machine learning and AR tech to improve images taken of vehicles through a smartphone.
  17. Huddleston, Tom (January 8, 2019). "Mark Cuban says this is Shark Tank's 'No. 1 success story' after start-up sells for $22 million". CNBC. Retrieved September 10, 2019. In April 2018, Carvana acquired Car360, the company Francois, 47, launched in 2015 that uses augmented reality technology and 3-D computer vision to allow people to take 360-degree photos of automobiles with a mobile phone.
  18. "Phoenix Rising FC reveals 2018 uniforms, announces new sponsor". Arizona Sports. March 11, 2018. Retrieved April 16, 2019.
  19. "Jimmie Johnson announces Carvana as sponsor for IndyCar venture with Ganassi". NBC Sports. October 21, 2020. Retrieved October 30, 2020.
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