Carvana

Carvana
Public
Traded as NYSE: CVNA (Class A)
Russell 2000 Component
Industry E-commerce / Car dealer
Founded November 2013 (2013-11)
Founders Ernest Garcia III
Ryan Keeton
Ben Huston
Headquarters Tempe, Arizona, U.S.
Area served
 United States
Key people
 Ernest Garcia III (Chairman, President, CEO)
Products Used cars
Website carvana.com

Carvana is a technology business start-up founded by Ernie Garcia And his son. Operations are based in Tempe, Arizona. It is an online-only used car dealer that allows customers to shop, finance, and trade in cars through their website.[1] It was founded in 2012 as a subsidiary of DriveTime and was spun out in 2014;[2] it held an IPO in 2017 and Ernest Garcia II, the chairman of DriveTime, was the largest shareholder at the time.[3]

Carvana offers both nationwide delivery, or the option for customers to pick up their vehicle purchases at one of the company's car vending machine locations after completing the purchase online.[4][5]

Background

Carvana is an online used car dealer that sells, finances, and buys back used cars through their website[1][4] and is headquartered in Phoenix, Arizona.[5] The company delivers cars to customers, or customers can also pick up their purchased vehicle from one of the company's car vending machines.[4]

Carvana was founded in 2012 as a subsidiary of DriveTime Automotive Group and was spun out of Drivetime in 2014.[2] Ernest Garcia II was chairman of DriveTime at the time and controlled most of the shares; Raymond Fidel was DriveTime’s CEO at the time, but has since been replaced by Don Reese.[3] Garcia's son, Ernest Garcia III, is CEO of Carvana, and, as of June 2017, the elder Garcia was Carvana's largest shareholder.[3] Carvana relies on DriveTime for much of its infrastructure.[3]

Carvana ranked 5th on the Forbes list of America's Most Promising Companies in 2015.[6]

In April 2017, the company went public with an initial public offering.[3]

Technology

Carvana Tempe vending machine

Potential customers can virtually tour the interior and exterior of each car in 360 degrees on the company's interactive website.[5][7]

In November 2013, Carvana opened a three bay "car vending machine" in Atlanta, Georgia that allowed people to pick up a car they had bought online, or to buy one of the cars without dealing with a sales person;[8] and in 2015, the company opened an automated version of its car vending machine in Nashville, Tennessee—a five-story glass tower that holds 20 cars at a time.[5][9][10] After buying a car online, customers can choose to pick up their car from a car vending machine location by finding their transaction in a kiosk at the site or by inserting a special coin into a receptacle at the site.[5][11]

As of July 2018, there are 13 multi-story Carvana vending machines. The first one went up in Nashville, Tennessee in 2015. Additional eight-story machines followed in Houston, Austin, Dallas, and San Antonio, Texas as well as Raleigh, North Carolina, Jacksonville, Florida, and Tampa, Florida.[12]

Competitors

As of 2016, Carvana's competitors included Carlypso, National Automotive Brokerage Services (NABS), Shift, ALM Automotive Group, Vroom.com, AutoNation, CarMax, Penske Automotive Group, and Sonic Automotive.[13][14]

References

  1. 1 2 Dahlberg, Nancy (12 Apr 2016), "Online used-car retailer Carvana expanding to Miami", Miami Herald
  2. 1 2 "Amendment No 2 to S-1/A". Carvana via SEC Edgar. April 17, 2017.
  3. 1 2 3 4 5 Weinberg, Neil; Metcalf, Tom (6 June 2017). "Cars in Vending Machines, a Fading IPO and an Ex-Con Owner". Bloomberg News.
  4. 1 2 3 Farmer, Blake (12 Nov 2015), "Why Nashville's Car Vending Machine Might Be More Than A Gimmick", Nashville Public Radio
  5. 1 2 3 4 5 Griffin, Justine (5 Apr 2016), "Online car seller Carvana launches in Tampa", Tampa Bay Times
  6. ↑ Strauss, Karsten (21 January 2015). "America's Most Promising Companies: The Top 20 Of 2015". Forbes.
  7. ↑ Leary, Brent (11 Mar 2016), "Ryan Keeton of Carvana: Using Amazon's Playbook, Car Vending Machine to Disrupt Used Car Industry", Small Business Trends
  8. ↑ Gastelu, Gary (2 Dec 2013), "Carvana opens used car vending machine in Atlanta", Fox News, retrieved 15 Apr 2016
  9. ↑ Jaynes, Nick (12 Nov 2015). "There's a five-story vending machine dispensing used cars in Nashville". Mashable. Retrieved 15 Apr 2016.
  10. ↑ O'Kane, Sean (12 Nov 2015). "A five-story vending machine for cars just opened in Nashville". The Verge.
  11. ↑ Guff, Samantha (16 Nov 2015). "Giant Car Vending Machine Serves Up Hot New Wheels". Huffington Post.
  12. ↑ Shop online for a used car then pick it up at this giant vending machine Mashable, March 2018
  13. ↑ Hirsch, Jerry (2 Aug 2015), "Cutting Edge Virtual used-car dealers gain traction", Los Angeles Times.
  14. ↑ Cella, Jason (2016), "Carvana, LLC", in Drew D. Johnson, International Directory of Company Histories, Vol. 176, Farmington Hills, MI: St. James Press. Gale Virtual Reference Library, pp. 84–87
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