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- Januari 20, 2018

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

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.


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Background

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

Carvana was founded in 2012 as a subsidiary of DriveTime Automotive Group and was spun out of Drivetime in 2014. Ernest Garcia II was chairman of DriveTime at the time and controlled most of the shares; Raymond Fidel is DriveTime's CEO. In the 1990s Garcia pleaded guilty to bank fraud and Fidel to securities fraud for their roles in 1980s savings and loan crisis. Garcia's son, Ernest Garcia III, is CEO of Carvana, and as of June 2017 the eldest Garcia was Carvana's largest shareholder. Carvana relies on DriveTime for much of its infrastructure.

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

In April 2017 the company went public.


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Technology

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

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. 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. After buying a car online, customers who chose to pick up their car from a car vending machine location by finding their transaction into a kiosk at the site or by inserting a special coin into a receptacle at the site.


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Competitors

As of 2016, Carvana's competitors included Carlypso, Shift, Vroom.com, AutoNation, CarMax, Penske Automotive Group, and Sonic Automotive.

Beepi was a competitor but started closing down in December 2016.

Source of the article : Wikipedia



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