Carvana is trying to disrupt the used car market. Its tagline is “All technology, no dealerships or salesmen”.
No question about lots of technology – algorithms which help them buy in the wholesale market, a website which acts as a virtual showroom for cars, complex logistics of moving cars and often delivering them to customers over long-distances (or they get subsidized to buy a one-way plane ticket to one of Carvana’s locations), getting prospects approved for financing, the reverse logistics if customers avail of the 7-day return policy, and of course that in the octagonal “vending machine” from which customers pick up their purchases.
At the end of last year, they had 41 percent coverage of the U.S. population and hope to get to 55 percent by the end of 2018. My hometown just got one of those vending machines.