Vroom, a US-based online platform for buying and selling used cars, has announced the end of its e-commerce business.
The decision to wind down our used car sales business is part of our strategy to maintain liquidity and increase value for our stakeholders.
United Auto Credit Corporation (UACC), the company's auto financing division, and CarStory, which provides AI-powered analytics and digital services for the auto retail industry, will continue to serve third-party customers. To go.
As part of a value maximization plan approved by the Vroom Board of Directors, Vroom will cease trading on the website vroom.com.
The company plans to liquidate its existing used car inventory through the wholesale route, stop acquiring new car inventory, and reduce its workforce in line with the downsizing of its business.
According to media sources, the move will result in the layoff of 800 employees, or 90% of the company's total workforce.
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Thomas Short, CEO of Vroom, said: “As previously disclosed, the Company has raised operational funds and intends to raise additional funds to support the expansion of its vehicle floor plan facility beyond the current expiration date of March 31, 2024. did.
“Despite our significant efforts to do so, we were ultimately unable to raise the necessary funds in the current market.Obviously, we are extremely disappointed with this outcome. .
“Two years ago, we set out to build a well-oiled machine, improve unit economics, and dramatically improve the customer experience, and we believe we have achieved those goals.
“We would like to thank our dedicated Blue Roommates, customers, business partners, firefighters and investors who have supported us over the years.”
