Carvana Co., together with its subsidiaries, operates an e-commerce platform for buying used cars in the United States. The company purchases, reconditions, sells, and delivers vehicles. Its platform allows customers to research and identify a vehicle; inspect it using company’s proprietary 360-degree vehicle imaging technology; obtain financing and warranty coverage; purchase the vehicle; and schedule delivery or pick-up.
Founded in 2012 and based in Phoenix, Carvana’s (CVNA) mission is to change the way people buy cars. I just want to repeat that they will deliver the car to you.
Such a cool business model, but really this is the world we love in where companies are telling customers…you can have it your way. And it a must, an imperative that companies up their customer service game or they will be Amazoned.
About a month ago, Carvana partnered with Bank of America to offer a streamlined digital car buying process. And around that same time, the company added five additional Northeast markets. Now customers can shop, finance, purchase, sell their current vehicle and for customers in Westchester County, N.Y.; Barnstable, Mass.; Norwich, Conn.; Atlantic City, N.J.; and Trenton, N.J., now can schedule as-soon-as-next-day delivery. And yesterday, Carvana announced as-soon-as-next-day vehicle delivery to Hilton Head Island, S.C., Tuscaloosa, Ala., Athens, Ga., and the company’s 100th market, Savannah, Ga.
On Thursday, Carvana announced quarterly earnings.
“Carvana closed out a strong 2018 with its 20th consecutive quarter of triple-digit unit and revenue growth. This made us the fastest growing public auto retailer in the country,” said Ernie Garcia, Carvana founder and CEO. “Our ability to execute at even greater scale continues to give us confidence in our path to selling 2 million cars per year.”
That was enough to send the stock up 7% on Friday. Despite breakeven being about two years ago, Carvana has taken the car buying experience up a notch. The chart suggests Carvana can move higher from currently levels to at least the daily supply at $50.
This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.
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