Carvana

From Wikipedia, the free encyclopedia
Jump to navigation Jump to search
Carvana
Public
Traded asNYSECVNA (Class A)
Russell 2000 Component
IndustryE-commerce / Car dealer
FoundedNovember 2013; 5 years ago (2013-11)
FoundersErnest Garcia III
Ryan Keeton
Ben Huston
Headquarters,
U.S.[1]
Area served
United States
Key people
Ernest Garcia III (Chairman, President, CEO)
ProductsUsed cars
Websitecarvana.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.[2] It was founded in 2012 as a subsidiary of DriveTime and was spun out in 2014;[3] it held an IPO in 2017 and Ernest Garcia II, the chairman of DriveTime, was the largest shareholder at the time.[4]

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.[5][6]

Background[edit]

Carvana is an online used car dealer that sells, finances, and buys back used cars through their website[2][5] and is headquartered in Tempe, Arizona.[1] The company delivers cars to customers, or customers can also pick up their purchased vehicle from one of the company's car vending machines.[5]

Carvana was founded in 2012 as a subsidiary of DriveTime Automotive Group and was spun out of DriveTime in 2014.[3] 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DriveTime at the time and controlled most of the shares; Raymond Fidel was DriveTime’s CEO at the time, but has since been replaced by Don Reese.[4] Garcia's son, Ernest Garcia III, is CEO of Carvana, and, as of June 2017, the elder Garcia was Carvana's largest shareholder.[4] Carvana relies on DriveTime for much of its infrastructure.[4]

Carvana ranked 5th on the Forbes list of America's Most Promising Companies in 2015.[7]

In April 2017, the company went public with an initial public offering.[4]

Technology[edit]

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.[6][8]

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;[9] 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.[6][10][11] 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.[6][12]

As of December 2018, there were 15 multi-story Carvana vending machines[13] in the following markets:

  • Tempe, Arizona (Phoenix suburb)
  • Jacksonville, Florida
  • Orlando, Florida
  • Tampa, Florida
  • Indianapolis, Indiana
  • Gaithersburg, Maryland (Washington, D.C. suburb)
  • Charlotte, North Carolina
  • Raleigh, North Carolina
  • Warrensville Heights, Ohio (Cleveland suburb)
  • Philadelphia, Pennsylvania
  • Nashville, Tennessee
  • San Antonio, Texas
  • Houston, Texas
  • Austin, Texas
  • Frisco, Texas (Dallas suburb)

Competitors[edit]

As of 2019, Carvana's competitors includes National Automotive Brokerage Services (NABS), Shift, Vroom.com, AutoNation, CarMax, Penske Automotive Group, and Sonic Automotive.[14][15]

References[edit]

  1. ^ a b Ringle, Hayley. "EXCLUSIVE: See inside Carvana's new Tempe headquarters". www.bizjournals.com. Retrieved 9 November 2018.
  2. ^ a b Dahlberg, Nancy (12 Apr 2016), "Online used-car retailer Carvana expanding to Miami", Miami Herald
  3. ^ a b "Amendment No 2 to S-1/A". Carvana via SEC Edgar. April 17, 2017.
  4. ^ a b c d e Weinberg, Neil; Metcalf, Tom (6 June 2017). "Cars in Vending Machines, a Fading IPO and an Ex-Con Owner". Bloomberg News.
  5. ^ a b c Farmer, Blake (12 Nov 2015), "Why Nashville's Car Vending Machine Might Be More Than A Gimmick", Nashville Public Radio
  6. ^ a b c d Griffin, Justine (5 Apr 2016), "Online car seller Carvana launches in Tampa", Tampa Bay Times
  7. ^ Strauss, Karsten (21 January 2015). "America's Most Promising Companies: The Top 20 Of 2015". Forbes.
  8. ^ Leary, Brent (11 Mar 2016), "Ryan Keeton of Carvana: Using Amazon's Playbook, Car Vending Machine to Disrupt Used Car Industry", Small Business Trends
  9. ^ Gastelu, Gary (2 Dec 2013), "Carvana opens used car vending machine in Atlanta", Fox News, retrieved 15 Apr 2016
  10. ^ Jaynes, Nick (12 Nov 2015). "There's a five-story vending machine dispensing used cars in Nashville". Mashable. Retrieved 15 Apr 2016.
  11. ^ O'Kane, Sean (12 Nov 2015). "A five-story vending machine for cars just opened in Nashville". The Verge.
  12. ^ Guff, Samantha (16 Nov 2015). "Giant Car Vending Machine Serves Up Hot New Wheels". Huffington Post.
  13. ^ Courtney, Chris (4 Jan 2019), "Carvana's newest Car Vending Machines comes to Indy", Carvana
  14. ^ Hirsch, Jerry (2 Aug 2015), "Cutting Edge Virtual used-car dealers gain traction", Los Angeles Times.
  15. ^ 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

External links[edit]