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Vroom, Inc.

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Vroom
File:Vroom Corporate Logo.png
Screenshot
File:Vroom.com screenshot.jpg
Type of site
Privately held company
FoundedAugust 2013 (2013-08)
HeadquartersNew York, NY, United States
IndustryE-commerce / Car dealer
ProductsUsed cars
URLvroom.com

Vroom.com is a New York City-based e-commerce company launched in August 2013 that allows customers to buy, sell and finance used cars online.[1] It also has a refurbishment facility in Stafford, Texas[2] and will be opening another in Whitestown, Indiana, in 2016.[3] It was included on Forbes’ list of the Hottest E-Commerce Startups of 2015[4] and was named one of the Hottest Startups in New York City by Business Insider in 2015.[5] Vroom’s CEO is Paul Hennessy, who was previously the CEO of Priceline.com.[6]

In December 2015, the company acquired Texas Direct Auto, a Houston-based company founded in 2002 that is now owned by Vroom but operates as a separate brand.[7] The combined company is profitable and reached $900 million in revenue in 2015.[8]

In February 2018, Vroom closed operations in its Whitestown, Indiana facility and laid off approximately 25% of its staff in the New York City and Stafford, Texas locations.[9]

Products

Rather than functioning as a peer-to-peer marketplace, Vroom is an e-commerce service that handles the entire transaction with no haggling on prices.[10][11] The company offers financing from more than 30 banks and cars are delivered to customers nationwide.[12][13] All cars that Vroom sells are reconditioned and the company uses proprietary RFID tracking and prioritization software to automate the refurbishment process.[14][15] Vroom provides a seven-day money back guarantee on purchases and a 90-day bumper-to-bumper warranty.[16] Vroom also buys cars from customers, who can receive a cash voucher after submitting photos and information about the car online.[17] On August 2, 2016 Vroom announced a virtual reality showroom that lets users explore the 15 makes and models in virtual reality. Vroom plans to open VR showrooms at its Texas offices in Grand Prairie and Houston, and in mall pop-up stores in Austin and Phoenix, Arizona.[18]

Funding

Vroom has raised $253 million in total funding. Investors include Catterton, General Catalyst Partners, Allen & Company, T. Rowe Price, John Elway, Steve Berrard (former CEO of Blockbuster and AutoNation), Jeffery Boyd (chairman of The Priceline Group) and Bob Mylod (former CFO of The Priceline Group).[19]

References

  1. ^ Griffith, Erin (16 June 2015). "A used car site backed by John Elway is on track to do $300 million in sales this year". Retrieved 19 February 2016.
  2. ^ Taylor, Kate (16 June 2015). "Vroom, the Startup That Aims to Be the Zappos of Online Car Buying, Raises $54 Million". Entrepreneur. Retrieved 19 February 2016.
  3. ^ Justin, Mack (30 September 2015). "Online car dealer Vroom to bring 200 jobs to Whitestown". The Indianapolis Star. Retrieved 19 February 2016.
  4. ^ Mac, Ryan (30 December 2015). "The Hottest E-commerce Startups Of 2015". Forbes. Retrieved 19 February 2016.
  5. ^ Martin, Emmie; Kosoff, Maya; Stanger, Melissa (9 October 2015). "These are the 65 hottest startups in New York City". Business Insider. Retrieved 19 February 2016.
  6. ^ Taylor, Kate (16 June 2015). "Vroom, the Startup That Aims to Be the Zappos of Online Car Buying, Raises $54 Million". Entrepreneur. Retrieved 19 February 2016.
  7. ^ Kolodny, Lora (16 December 2015). "Vroom Raising $95 Million to Acquire Texas Direct Auto". Wall Street Journal. Retrieved 19 February 2016.
  8. ^ Mac, Ryan (17 December 2015). "Online Car Startup Vroom Looks To Acquire Leading EBay Car Retailer And Raise $95 Million". Forbes. Retrieved 19 February 2016.
  9. ^ "Vroom hits brakes on ambitious plans for central Indiana".
  10. ^ Korosec, Kristen (16 December 2015). "Online Car Startup Vroom Raises $95 Million And Buys A Competitor". Fortune. Retrieved 19 February 2016.
  11. ^ Kessler, Sarah (20 July 2015). "The Used Car Market Meets 2015: No Showroom, No Salesmen, Free Delivery". Fast Company. Retrieved 19 February 2016.
  12. ^ Griffith, Erin (16 June 2015). "A used car site backed by John Elway is on track to do $300 million in sales this year". Fortune. Retrieved 19 February 2016.
  13. ^ Taylor, Kate (20 July 2015). "Vroom, the Startup That Aims to Be the Zappos of Online Car Buying, Raises $54 Million". Entrepreneur. Retrieved 19 February 2016.
  14. ^ Ha, Anthony (16 December 2015). "Vroom Raises $95M And Acquires Texas Direct Auto In Its Quest To Bring Car-Buying Online". Techcrunch. Retrieved 19 February 2016.
  15. ^ Taves, Max (20 July 2015). "Vroom raises $54 million to make buying a used car less horrible". CNET. Retrieved 19 February 2016.
  16. ^ Korosec, Kristen (16 December 2015). "Online Car Startup Vroom Raises $95 Million And Buys A Competitor". Fortune. Retrieved 19 February 2016.
  17. ^ Griffith, Erin (16 June 2015). "A used car site backed by John Elway is on track to do $300 million in sales this year". Fortune. Retrieved 19 February 2016.
  18. ^ Mary Swant. "Vroom Is Debuting a Virtual Reality Showroom for Buying Cars Online". Adweek. Retrieved 4 August 2016.
  19. ^ Korosec, Kristen (16 December 2015). "Online Car Startup Vroom Raises $95 Million And Buys A Competitor". Fortune. Retrieved 19 February 2016.
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