ATLANTA and SAN FRANCISCO -

For automotive upstarts like Shift Technologies, the retailing may be digital, but the meat-and-potatoes logistics of operating an enterprise are still very much physical.

And especially when it comes to scaling that model. That often means a great deal of overhead, something Shift is looking to alleviate through a partnership with Cox Automotive that can help the online retailer expand to new markets more efficiently.  

With this partnership, announced Wednesday, the online retailer is leaning on Cox’s Manheim auctions to take care of those boots-on-the-ground physical logistics — reconditioning, marshaling, storing cars, etc. — that come with retailing vehicles, as it expands.

“We’re excited to partner with Cox, which enables us to provide more consumers access to Shift’s platform and services,” Shift chief executive George Arison said in a news release.

“By removing the need for us to lease facilities, build systems and recruit teams for physical vehicle needs, we will significantly reduce our upfront investments and can instead focus on building incredible technology that makes car buying and selling simpler,” he said.

Shift tested this arrangement out at Manheim San Diego, which it used for vehicle storage, reconditioning, imaging, inspections and detailing, just to name a few tasks. It currently keeps 300 cars at that auction and is considering expanding into markets where Manheim has a presence.

“There are many new players with innovative technology platforms entering the market, yet they still require physical infrastructure,” said David Liniado, Cox Autmotive’s vice president of new growth and development, in a news release.

“Our partnership with Shift is an example of how Cox Automotive can nurture and accelerate their go-to-market proposition or expand their footprint and inventory volume by incrementally leveraging our assets,” he said.  

Arison added: “Thanks to Manheim, we’re transitioning to a nimbler business model. Manheim’s national network and deep remarketing expertise, as well as solutions provided by other Cox Automotive brands, are integral to Shift’s plans.”