Carvana slides
- 1. »jiabinz
- 2. • Dealer without a showroom • Mission: make used car buying easier • Using internet and visual tools 2CARVANA Introduction
- 3. Sample Product: Browsing 3 • 360 degree view • imperfection listed • interior & engine bay view
- 4. Sample Product: Financing 4 • Instant financing calculation • Extended warranty available as “CarvanaCare”
- 5. Sample Product: Shipping 5 • Promotes fancy shipping experience • Difficult to live up to the promise
- 6. • Buying a used car at dealership sucks: • Inspect the car • Negotiating the price • Getting finance terms 6CARVANA makes sense: • CARVANA nailed it by: • Lightly used car only • Fixed price, lower than dealers • Finance terms calculated
- 7. Price Comparison: Carvana BMW Ann Arbor Price 24,900 30,000 Mileage 31988 miles 35947 miles Feature similar similar 7 »2015 BMW 328 xDrive
- 8. 1. Source Vehicles • Auction • Public • other sources 2. Reconditioning • Inspection center • Paint, mechanical, etc. Business Model: 8 3. Photography • Photo booth and software process • 15 min / vehicles 4. Merchandising • List imperfections • List all features • Transparency 5. Buy & Finance • self-service*** • 10% customers complete in 15 mins 6. Deliver & Pick up • Own fleet delivery? • Pick up at vending machine • 7-day return policy; 4% returns; cost 10 dollar/sale
- 9. Company history: CEO: Ernie Garcia III • Stanford • Treasurer, DriveTime • Dad: Ernie Garcia II • Owner of DriveTime • Owns large part of Carvana • Has apartment at Trump Tower NY • March 2011, Ernie started Carvana • Nov 2017, Carvana launches it’s 40th Market 9
- 10. Finance: before IPO Series A Jan 23, 2013 DriveTime 50 million Series B May 15, 2015 undisclosed 90 million Series C Aug 10, 2016 undisclosed 1.6 billion 10
- 11. Finance: After IPO 11 »Nov 07, 2017, Ally provides $2 billion in financing to Carvana
- 12. Secret sauce: Right time: Internet everything DriveTime: shared infrastructure, funding support, shared expertise Customer focused: Amazon for cars? Fancy marketing 12
- 13. Competition: 13
- 14. It will continue to grow, but won’t be the biggest winner in the future. - The company is expanding at a fast speed, it also has expertise and funding that is needed. - not disruptive enough. - failed to deliver great customer experience - The future of car owning is remain to be seen as car sharing and self-driving technology develops dramatically 14 Prediction
- 15. Thanks! My unique name is: jiabinz 15