Vroom Ending its Used Vehicle Business
Vroom, an e-commerce platform for buying and selling used vehicles, is discontinuing its online operations and winding down its used vehicle dealership business in order to preserve liquidity and enable the company to maximize stakeholder value through its remaining businesses.
Vroom owns and operates United Auto Credit Corporation (UACC), an automotive finance company, and CarStory, a provider of AI-powered analytics and digital services for automotive retail. UACC and CarStory will continue to serve their third-party customers and focus on growing those businesses.
Under the Value Maximization Plan approved by Vroom’s Board of Directors, the company is suspending transactions through vroom.com, planning to sell its current used vehicle inventory through wholesale channels, halting purchases of additional vehicles, and executing a reduction-in-force commensurate with its reduced operations.
“As we previously disclosed, we intended to raise additional capital to fund our operations and support the extension of our vehicle floorplan facility beyond its current expiration date of March 31, 2024,” said Thomas Shortt, chief executive officer. “Despite significant efforts to do so, we ultimately were unable to raise the necessary capital in the current market. Obviously, we are very disappointed with this outcome. Two years ago, we set out to build a well-oiled machine, improve unit economics and dramatically improve our customer experience and I believe we achieved those goals. I want to thank our dedicated Vroommates, customers and business partners, as well as our Board of Directors and investors, all of whom have supported us over the years.”