SHIFT CAR SALES STOCK DRIVERS
SoftBank-backed Fair puts the brakes on weekly car rentals for Uber drivers That’s what makes Shift’s purchase of Fair’s tech so powerful.įair, which has had a tumultuous past marked by unsuccessful attempts to commercialize auto leasing and subscriptions, spent the last 18 months building what amounts to a fintech platform, one that allows customers to shop for cars from a variety of sources from the comfort of their home schedule test drives, fulfillment and delivery handle trade-ins buy insurance purchase or finance a car and buy “anything that you could possibly want to attach to a car transaction,” said Brad Stewart, CEO of Fair. The average expected revenue lost from poor digital experiences in the automotive industry is as high as 18%, according to new research from Qualtrics, which also found that reducing the effort required to a complete a task online can lead to a 23% increase in spend. Companies that don’t get the UX down won’t survive as the industry consolidates and responds to such consumer demands. The result is that the average consumer is shrewder than ever and eager for a site that can help them find the best deal for the best price and with plenty of flexibility. On top of that, you have a higher interest rate because interest rates are going up.” “Which is really tough because people who thought they could afford a $450 per month car are now told to buy that same car for $600 per month. “In Q1, we’re starting to see retail inventory prices start to depreciate like they normally would, so our assumption is that 2022 will be more like 2019 in terms of normal patterns of depreciation, but we don’t expect prices to go back to where they were in 2019,” Arison told TechCrunch, noting the average car sales price increase from 2021 to 2022 is so far only 17.5%, but that those vehicles are on average a year or two older than the previous years. More generally, year-over-year, used car prices have gone up nearly 33%, according to data from Car Gurus. From 2020 to 2021, prices on Shift’s platform went up nearly 40%, from around $16,400 to a nearly $23,000 average sale price, according to George Arison, Shift’s co-founder and CEO. Rising inflation and a supply chain that was already constrained by the pandemic and will now suffer further due to Russia’s war in Ukraine has led to a decrease in new car purchases, which means fewer used cars are hitting the market.ĭemand for vehicles, however, has not dropped, leading to skyrocketing prices for used cars. The deal is a nod toward the direction the online auto market is moving, where even the sale of used cars will require a first-class, seamless user experience. Learn more about our consumer & retail investment banking expertise.Used car e-commerce platform Shift has acquired some of competitor Fair Technologies’ technology, allowing Shift to become the Amazon of the used car marketplace, a platform that displays third-party listings from dealers alongside the company’s own inventory. Shift Technologies provides comprehensive, digital solutions throughout the car ownership lifecycle, enabling customers to purchase a vehicle online with financing and vehicle protection products, and a vision to provide high-value support services during car ownership. The company’s mission is to make car purchase and ownership simple - to make buying or selling a used car fun, fair, and accessible to everyone. Shift Technologies is a leading end-to-end auto ecommerce platform transforming the used car industry with a technology-driven, hassle-free customer experience. CarLotz’s technology provides its corporate vehicle sourcing partners with real-time performance metrics and data analytics, along with custom business intelligence reporting that enables vehicle triage optimization between the wholesale and retail channels.
The company operates a technology-enabled buying, sourcing, and selling model that offers an omni-channel experience and diverse selection of vehicles. CarLotz’s mission is to create the world's greatest vehicle buying and selling experience. About the CompaniesĬarLotz operates a consignment-to-retail used vehicle marketplace that provides its corporate vehicle sourcing partners and retail sellers of used vehicles with the ability to easily access the retail sales channel. The transaction signed on Augand is expected to close in Q4 2022. CarLotz shareholders are expected to receive approximately 0.692158 shares of Shift common stock for each share of CarLotz common stock. William Blair & Company acted as the exclusive financial advisor to CarLotz (Nasdaq: LOTZ) in connection with its pending merger with Shift Technologies (Nasdaq: SFT).
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