Vroom, a US-headquartered online platform for buying and selling used vehicles, has announced the cessation of its e-commerce operations.
The decision to wind down its used vehicle dealership business is part of a strategy to preserve liquidity and enhance value for stakeholders.
The company’s automotive finance arm, United Auto Credit Corporation (UACC), and CarStory, a provider of AI-driven analytics and digital services for the automotive retail sector, will continue to serve their third-party customers.
As part of the value maximisation plan endorsed by Vroom’s board of directors, Vroom will cease transactions on its website, vroom.com.
The company plans to liquidate its existing used vehicle inventory via wholesale channels, cease acquiring new vehicle stock and implement a workforce reduction aligned with the scaling back of its operations.
According to media sources, the move will result in the layoff of 800 employees – 90% of the total workforce.
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Vroom CEO Thomas Shortt stated: “As we previously disclosed, we intended to raise additional capital to fund our operations and support the extension of our vehicle floorplan facility beyond its current expiration date of 31 March 2024.
“Despite significant efforts to do so, we ultimately were unable to raise the necessary capital in the current market. Obviously, we are very disappointed with this outcome.
“Two years ago, we set out to build a well-oiled machine, improve unit economics and dramatically improve our customer experience, and I believe we achieved those goals.
“I want to thank our dedicated Vroommates, customers and business partners, as well as our board of firectors and investors, all of whom have supported us over the years.”