Carvana

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Not to be confused with Carvanha.
Carvana Co.
TypePublic
NYSE: CVNA (Class A)
Russell 1000 Component
IndustryE-commerce
Founded2012
FoundersErnest Garcia III
Ryan Keeton
Ben Huston
Headquarters
Tempe, Arizona
,
U.S.[1]
Area served
United States
Key people
Ernest Garcia III, Chairman/CEO
ProductsUsed cars
Revenue$5.587 billion (2020)
−$462 million (2020)
Websitecarvana.com

Carvana, based in Tempe, Arizona, is a leading e-commerce company that sells used cars through an easy-to-use technology platform. The Houston Chronicle dubbed the company the “Amazon of Auto”.[2] [1] The company is the fastest growing online used car dealer in the United States and is known for its multi-story car vending machines.[3][4] Carvana is currently in hypergrowth mode and was recently added to the 2021 Fortune 500 List, one of the youngest companies to be added to the list.[5]

History[]

Carvana Tempe vending machine

Carvana was founded by Ernest Garcia III, Ryan Keeton and Ben Huston in 2012. The company's initial funding round came from the used car retailer and finance company, DriveTime.[6]

In November 2013, Carvana opened its first iteration of a car vending machine. In 2015, a fully automated, coin-operated version of the signature car vending machine opened in Nashville, Tennessee.[3]

In April 2017, the company went public and began trading on the New York Stock Exchange under the symbol CVNA.[7]

In response to COVID-19, Carvana introduced touchless delivery and pick-up in March 2020.[8] In Q2 of 2020, the company reported a 25% increase in vehicle sales, as a result of physical dealership sellers being closed as a consequence of the COVID-19 pandemic. Carvana had a gross revenue of $1.12 billion, up 13% for the months April–June 2020.[9]

In 2020, Carvana sold 244,111 vehicles and posted annual revenue of $5.587 billion, making it the second largest online used-car retailer in the U.S.[10] Carvana reported triple-digit revenue growth and record retail unit sales in Q1 of 2021, with quarterly revenue of $2.245 Billion, an increase of 104% YoY and Total Gross Profit of $338 Million, an increase of 145% YoY.[11]

As of August 2021, Carvana's as-soon-as-next day delivery was available in 300+ markets across the country.[12]

Merger and acquisitions[]

In 2017 Carvana acquired rival automotive startup Carlypso to enhance vehicle data and analytical tools.[13] In April 2018, Carvana spent $22 million to acquire Mark Cuban-backed Car360 for its smartphone technology for taking vehicle photos with 3D computer vision, machine learning, and augmented reality.[14][15]

Community support programs[]

In December 2020, Carvana donated 21 vehicles to 21 team members nationwide who were nominated by their peers for their perseverance and hard work during the pandemic.[16] In 2021, Carvana launched a tuition reimbursement program, Carvana KEYS (Keeping Education in Your Sight), to assist team members pursuing the completion of an undergraduate degree.[17]

Carvana is a sponsor of the USL Championship's Phoenix Rising Football Club since 2018,[18] and IndyCar Series driver Jimmie Johnson since 2021.[19]

References[]

  1. ^ Jump up to: a b Ringle, Hayley. "EXCLUSIVE: See inside Carvana's new Tempe headquarters". bizjournals.com. Retrieved November 9, 2018.
  2. ^ Takahashi, Paul (March 1, 2019). "Group 1 Auto makes inroads in online sales". HoustonChronicle.com. Retrieved May 6, 2020.(subscription required)
  3. ^ Jump up to: a b Lekach, Sasha (March 21, 2019). "Pick up your used car at Carvana's newest car-sized vending machine". Mashable. Retrieved October 31, 2019.
  4. ^ Light, Larry (April 27, 2020). "After The Quarantines, We May All Sell And Buy Used Cars The Carvana Way". Forbes. Retrieved July 26, 2021.
  5. ^ Gull McElroy, Nicole (June 2, 2021). "How did Carvana make it onto the Fortune 500? Unconventional values—and car vending machines". Fortune. Retrieved July 26, 2021.
  6. ^ "Amendment No 2 to S-1/A". Carvana via SEC Edgar. April 17, 2017.
  7. ^ Korosec, Kirsten. "The 'Amazon of Cars' Has Filed For An IPO" (March 31, 2017). Fortune. Retrieved July 26, 2021.
  8. ^ "Carvana moves to touchless delivery for online car sales". Payments Dive. March 26, 2020. Retrieved July 26, 2021.
  9. ^ Naughton, Nora (August 10, 2020). "Growth in Online Shopping and Used Cars Lifts Carvana, Attracts Competition". The Wall Street Journal. Retrieved August 10, 2020.
  10. ^ "Q4 2020 Shareholder letter" (PDF). Retrieved March 11, 2021.
  11. ^ "Carvana Announces First Quarter 2021 Results". MarketWatch. May 6, 2021. Retrieved July 26, 2021.
  12. ^ "Carvana Launches in Wichita With As-Soon-As-Next Day Vehicle Delivery". Yahoo!. June 30, 2021. Retrieved July 26, 2021.
  13. ^ "The Amazon Of Cars Just Made Its First Acquisition". Fortune. Retrieved April 16, 2019.
  14. ^ "Carvana acquires Car360 for $22M to improve its car-buying platform". TechCrunch. Retrieved April 16, 2019. Car360 uses 3D computer vision, machine learning and AR tech to improve images taken of vehicles through a smartphone.
  15. ^ Huddleston, Tom (January 8, 2019). "Mark Cuban says this is Shark Tank's 'No. 1 success story' after start-up sells for $22 million". CNBC. Retrieved September 10, 2019. In April 2018, Carvana acquired Car360, the company Francois, 47, launched in 2015 that uses augmented reality technology and 3-D computer vision to allow people to take 360-degree photos of automobiles with a mobile phone.
  16. ^ Pevos, Edward (December 22, 2020). "Michigan father of 5 surprised with new car after he would bike to work, even in winter". Michigan Live. Retrieved March 11, 2021.
  17. ^ "Carvana Launches Tuition Program". Used Car News. January 11, 2021. Retrieved March 11, 2021.
  18. ^ "Phoenix Rising FC reveals 2018 uniforms, announces new sponsor". Arizona Sports. March 11, 2018. Retrieved April 16, 2019.
  19. ^ "Jimmie Johnson announces Carvana as sponsor for IndyCar venture with Ganassi". NBC Sports. October 21, 2020. Retrieved October 30, 2020.

External links[]

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