The first car that Carvana ever sold was in Georgia, and now the online retailer has opened a new campus in the state’s capital.
Carvana’s new Atlanta facility, which officially launched Tuesday, currently employs 1,500 team members in the state.
The company plans to add 3,500 more jobs in the area in coming years.
Atlanta was the online retailer’s first market when Carvana debuted in January 2013
The company now has multiple logistics hubs in Georgia along with an inspection center and one of its Car Vending Machines.
“When we sold our first vehicle online in 2013, we were a scrappy group on a mission to change the way people buy cars by re-imagining the business from the ground up with the north star of delivering the best customer experiences available,” Carvana founder and chief executive officer Ernie Garcia said in a news release.
“Atlanta was the first market where we sold 1,000 cars in one month and is still our largest, even though we’ve sold more than one million vehicles to date,” Garcia said. “Now more than ever, we remain committed to our continued expansion within the region.”
Carvana has added its 312th market, announcing Wednesday that its home delivery is now available in the Cape Girardeau area of Missouri.
The company launched in Joplin and Springfield back in September, bringing its market count in the state to six, at that time.
“Today’s launch in Cape Girardeau offers even more residents in Missouri an unbeatable selection of cars, at great prices, in their driveways as soon as the next day,” Carvana founder and chief executive officer Ernie Garcia said in a news release. “We’re confident area residents will embrace the ease, convenience and great customer service we’ve become known for.”
Last week, Carvana staked claim to two milestones: the fastest used-car retailer to organically sell more than 400,000 units in a year and the fastest online auto retailer to have reached 1 million sales since founding (nine years).
The company said it reached each of these landmarks in the fourth quarter.
“Our engine of growth is fueled by amazing and ambitious people who all share the same values and commitment to our customers, who bring boundless energy and discipline, who feel like they're part of something, who have chosen to care a little more than most, who learn and get a little better every day, and who have fun along the way,” Garcia said in a news release.
“While there’s so much to look forward to and we’re just getting started, I’m incredibly proud of our team that has helped refine, simplify, and improve the car buying experience for a million people and counting across the U.S.,” he said.
Carvana is staking its claim to two milestones: the fastest used-car retailer to organically sell more than 400,000 units in a year and the fastest online auto retailer to have reached 1 million sales since founding (nine years).
The company said it reached each of these landmarks in the fourth quarter.
“Our engine of growth is fueled by amazing and ambitious people who all share the same values and commitment to our customers, who bring boundless energy and discipline, who feel like they're part of something, who have chosen to care a little more than most, who learn and get a little better every day, and who have fun along the way,” Carvana founder and chief executive officer Ernie Garcia said in a news release.
“While there’s so much to look forward to and we’re just getting started, I’m incredibly proud of our team that has helped refine, simplify, and improve the car buying experience for a million people and counting across the U.S.,” he said.
And online used-car retailers like Carvana and rival Vroom are gaining traction from a consumer popularity standpoint, according to recent data in the 2021 Car Buyer Journey Study from Cox Automotive.
There was a 9% increase in the number of used-car buyers browsing the websites of what Cox Automotive has dubbed “New Form Online Retailers.” What’s more, there was a 4% uptick in the number of new-car buyers browsing those same sites, which just sell used cars.
“As new-vehicle inventory became more expensive and harder to find, buyers turned to the used-vehicle market and searched the sites of these online retailers for used-vehicle inventory,” Cox Automotive said in a news release.
This week, industry veterans Brian Reed, Steve Greenfield, Andrew Gordon and Pete Batten formed a team they’ve called Automotive Market Data.
And the team launched what it believes is the first-ever digital retailing market share database to inform dealers, investors and vendors — in real-time — about the automotive digital retailing landscape.
According to a news release, the database evaluates more than 35 digital retailers each day across approximately 18,000 U.S. automobile dealer websites to identify the top digital retailers among dealers, predominant digital retailers by brand and leading technology providers in the automotive space, as well as unique digital retailing trends and emerging technologies.
“The pandemic hyper-accelerated automotive digital retail adoption, which created a need for comprehensive, up-to-date information to help industry professionals make highly informed decisions,” said Reed, who is an industry advisor at Automotive Ventures and partner at Automotive Market Data.
“More than ever, dealers need to know which digital retailing tools to use, investors need to know where to commit their money, and vendors need to know how they stack up against the competition. We provide answers to these questions and more,” Reed continued in the news release.
The group shared a sample list of the independent, third-party reporting provided by Automotive Market Data, potentially including not limited to:
— Digital retailer growth rate, churn rate, and market penetration.
— The digital retailing tool(s) that are currently being used, or have just been added, to particular dealership websites.
— Digital retailer dealer count changes over specified periods of time and within specific geographic regions.
— Digital retailer market share by automotive manufacturer.
— Dealer and/or manufacturer customer longevity among digital retailers.
The Automotive Market Data team also is looking provide the industry with dealership contact information, vehicle-specific data, new and used-vehicle market pricing, cost of ownership information and vehicle history reports.
“Despite its importance, a complete picture of the digital retailing landscape didn’t exist until now,” said Greenfield, founder and chief executive officer of Automotive Ventures and partner at Automotive Market Data.
“Historically, it’s been next to impossible to identify top digital retailers by dealer and OEM market share, yet information like this is vastly helpful to industry professionals who are looking to get ahead of the technology curve and stay there,” Greenfield continued. “This is the precise reason we created the digital retailing market share database.”
Automotive Market Data is a collaborative of veteran automotive industry professionals who have served in various leadership and entrepreneurial roles throughout their careers.
Reed spent 18 years at Daimler-Benz before serving as president of PeopleFirst.com, which was acquired by CapitalOne. He was also the founder and CEO of F&I Express, which was acquired by Cox Automotive.
Greenfield served as TrueCar’s senior vice president of strategy and business development, and Autotrader’s vice president of product management and business development, overseeing the acquisitions of vAuto, Kelley Blue Book, HomeNet Automotive, VinSolutions and DealerScience.
Gordon, adviser at Automotive Ventures and partner at Automotive Market Data, is a third generation Honda dealer. He served as founder and CEO of DealerScience, which was acquired by TrueCar in 2018.
Batten is a dealer retail technology and data advisor with more than 20 years’ experience in vehicle retailing who has served as general manager for several automotive software brands, including Cox Automotive Digital Retail, Chrome Data, and Automotive Lease Guide. He was also chief product officer at LeadVenture.
To download a copy of Automotive Market Data’s white paper titled, “Digital Retailing: The Missing Piece of the Data Puzzle,” visit http://www.automotivemarketdata.com/resources.
To learn more about the information Automotive Market Data offers the industry, visit http://www.automotivemarketdata.com.
November has been another active month at Carvana, which like many used-vehicle retailers is dealing with the headwinds of high wholesale prices and limited supply.
Still, Carvana not only expanded its Midwest footprint in November, the retailer also added the 29th and 30th vehicle vending machines to its marketing portfolio.
Carvana now offers as-soon-as-next-day vehicle delivery to customers in 309 cities across the U.S., having gone into a place that often is a hotbed for presidential politics — Des Moines, Iowa.
“Des Moines is quickly becoming a central hub of culture and growth in the Midwest, so we’re pleased to make our Iowa debut here with The New Way to Buy a Car,” Carvana founder and chief executive officer Ernie Garcia said in a news release. “We are changing the way people buy and sell cars across the country, and we’re confident that Des Moines will embrace the ease and transparency our online car shopping experience offers.”
And Carvana’s experience also can include taking delivery from one of its famous vending machines. The company recently opening machines in Salt Lake City and Richmond, Va., to go with the ones it already operates in Nevada, Kentucky, Tennessee, Texas, Florida, Maryland, Arizona, Ohio, Pennsylvania, Indiana, Illinois, Missouri, North Carolina, Oklahoma, California, Michigan and Georgia.
“Earlier this year we debuted as-soon-as-next-day delivery in Salt Lake City, and now we’re proud to also bring our newest car vending machine to the community,” Garcia said in another news release.
In a third announcement, Garcia added, “Richmond is now home to our 30th car vending machine, one of the tallest we’ve ever built. This homage to Richmond’s distinguished historic district showcases our fun, customer-centric car buying experience and we look forward to continuing to deliver exceptional customer experiences here for years to come.”
Vroom launched a new television commercial on Tuesday that features New York Knicks All-Star Julius Randle, but the online auto retailer also made a move this week that may be of interest to fans of the Houston Rockets, as well.
First the new ad.
The spot featuring Randle began airing Tuesday during local NBA games, as the season officially tipped off, and will continue to run throughout the season. The ad is part of the company’s partnership with Playfly Sport’s Home Team Sports platform.
In a news release, Vroom described the ad with the Knicks forward as a “humorous take on the unfortunate results consumers can experience purchasing cars from untrusted sources.”
“As both a parent with a young family and a professional athlete, I want to spend as much of my time as possible with the people that mean the most to me, not at a car dealership,” Randle said in a release. “The ability to choose from such a wide variety of cars and have them delivered directly to my door fits my lifestyle perfectly.”
Vroom continues to utilize live sports as an advertising avenues, having debuted a Super Bowl spot earlier this year and aired ads during the Tokyo Olympics this summer as well as during NFL games this fall.
“Live sports continues to be a great opportunity for us to introduce Vroom to a large, highly-engaged audience,” Vroom chief marketing officer Peter Scherr said in a news release.
“Partnering with a player of Julius Randle’s stature, who is at the top of his sport, allows us to connect even deeper with local fans in a fun and engaging way that shines a light on what makes our brand offering so special,” he said.
Playfly Sports chief operating officer Craig Sloan added: “Vroom understands that you simply cannot beat the connection to a home team audience, one that tunes in to root enthusiastically for their team night after night.
“Our team leaned into Vroom’s success as a disruptive and thriving brand to develop really smart creative that we know will excite fans throughout the season.”
In other news from the company, Vroom said Wednesday it has opened a hub in the Houston suburb of Stafford, Texas.
Vroom has delivered vehicles in that market since 2012 and has more than 900 employees in the area, who work in its reconditioning center, executive officers, Texas Direct Auto dealership, Sell Us Your Car locations and this new Last Mile Hub.
With this new hub, however, Vroom said it is able to “create a more customized driveway experience for nearly 7.1 million people in more than 455 zip codes within a 75-mile radius.”
Through the hub, Vroom will also be able to inspect, detail and add temporary tags to vehicles delivered to or picked up in the state.
“As Vroom’s business continues to grow, we’re committed to investing in the Houston area, from expanding our physical footprint, to hiring more local workers, to offering new services for our valued customers,” Vroom chief logistics officer Mary Kay Wegner said in the release.
“Creating a more personalized driveway experience, rolling out more local hubs across the country, and expanding our senior logistics team have been big priorities for us, so we’re excited to launch this offering in Houston, one of our home cities.”
It has been a busy October from the company.
Vroom announced Oct. 12 that it has reached a deal to purchase United Auto Credit Corp. for $300 million in cash, subject to adjustment depending on the closing book value of United Auto Credit.
The acquisition would further push Vroom into building captive financing capabilities. Additionally, integrating United Auto Credit’s non-prime financing capabilities can help allow consumers from additional credit tiers to purchase on the Vroom platform, the company said.
United Auto Credit will be added to the existing lineup of auto finance options on the Vroom platform. Meanwhile, both companies will work on integrating United Auto Credit’s services and build Vroom’s captive finance operation
The rapidly growing online retailer Carvana entered two new Arkansas markets this week, expanding into Fayetteville and Fort Smith. Those represent its fourth and fifth markets in the state, respectively.
“Growing our footprint in Arkansas helps us bring 'The New Way to Buy a Car' to even more customers looking for an easy, transparent car buying experience,” Carvana founder and chief executive officer Ernie Garcia said in a news release announcing the Fayetteville launch. “We look forward to offering as-soon-as-next-day delivery of our national inventory to Fayetteville area residents.”
Customers in these two markets can now shop for more than 45,000 used cars for sale through Carvana's site, purchase, trade-in and schedule as-soon-as-next-day vehicle devliery. Customers can also sell their current vehicle to Carvana without having to purchase a vehicle from the site.
“As we expand our reach in Arkansas, we’re bringing our easy, convenient and transparent car buying experience to one of the largest cities in the state,” Garcia said in the release on the Fort Smith launch. “We are confident area residents will appreciate 'The New Way to Buy a Car' and the customer service we’ve become known for.”
Carvana now offers vehicle delivery to customers in 305 cities across the U.S.
Check out further recent coverage of Carvana's expansion across the U.S. from Auto Remarketing:
Carvana extends reach in Nevada to Reno & Carson City
Carvana expands its reach to Nebraska
Carvana announced it’s working with buyers in Wichita, Kan.
Carvana expands presence in Washington
Carvana adds 9 new markets
Vroom continues its expansion, with news coming Tuesday that it has opened a Phoenix Last Mile hub in Tolleson, Ariz.
While the online retailer has delivered cars in the area since its 2012 founding, the hub provides a delivery experience that “more personalized concierge service where customer advocates transport cars directly to car buyers’ driveways on Vroom-branded trucks and show them how to use their new vehicles,” Vroom said in a release.
Vroom said it saw Phoenix-area purchases climb 56% between 2020 and 2021. The number of cars Vroom bought from customers in the area climbed 95% n the same time frame.
“With our valued customers in mind, creating a more personalized driveway experience and rolling out more local hubs across the country has been a priority for us at Vroom and we’re excited to launch this offering in Phoenix, a city with 7 million vehicles passing through its metro area every month,” Vroom chief logistics officer Mary Kay Wegner said in a news release.
“As we prioritize expanding the Last Mile experience nationwide, we’ll continue to grow and invest in our senior logistics team to support these efforts,” she said.
Carvana announced both its entry into Nebraska and a new milestone on Wednesday: surpassing 300 overall markets.
The used-car ecommerce platform is now available in Omaha (its 300th market) and Lincoln (No. 301).
“It feels like not so long ago that we launched our first market and set out to change the way people buy and sell cars,” Carvana founder and chief executive Ernie Garcia said in a news release announcing the expansion to Omaha.
“Just nine years later, our debut in Nebraska marks an important milestone for us, as we bring a great selection of cars, at great prices, with great customer service to our 300th market,” he said.
In the release regarding opening up in Lincoln, which was also announced Wednesday, Garcia said: ““Providing as-soon-as-next-day delivery to Lincoln unlocks a national inventory of great vehicles, at great prices, with great customer service, to our second market in the Husker State.
“We look forward to serving the Lincoln community with an easy, transparent car buying and selling experience.”
The expansion into Nebraska marks the first new markets announced by Carvana since late June, when it debuted in Wichita, Kan., its fifth market in Kansas.
Carvana is set to announce its second-quarter results on Thursday.
Cox Automotive teamed up with Penske Automotive Group to build an automated technology platform that will facilitate online used-car sales at Penske’s U.S. CarShop used-vehicle SuperCenters and franchised stores.
Shortly after the platform was announced, Cox Automotive executives Kelly Mulroney and Mike Barrington joined the Auto Remarketing Podcast to share more details on how the platform works and potential next steps.
To listen to the episode, click on the link available below, or visit the Auto Remarketing Podcast page.
Download and subscribe to the Auto Remarketing Podcast on iTunes or on Google Play.
