Home News The future of car ownership: Building an online dealership

The future of car ownership: Building an online dealership

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Purchasing a car is debilitating. Dealerships will be the worst, and the choices are endless. The rise of the Internet generated powerful tools for shoppers, however in the end, most buyers still need to trudge down to your great deal.

For this series of articles, TechCrunch talked with several investors and founders attempting to rethink car purchasing. It’s clear these startups will be the underdog in this struggle. Most consumers purchase cars the exact same manner as their grandparents did for great reason. Dealerships nationally fought for years to enact laws and regulations that protect their companies.

Several young companies are attempting to put the dealership online. Firms like Carvana, Shift, Vroom and Joydrive are putting the whole car buying process online, allowing customers to purchase, trade-in and even test drive vehicles without talking to a salesman in an oversized golf pullover.

Within the next portion of the series, we’ll consider companies including Fair that are moving consumers from purchasing and to short-term leases. Even automakers are trying something new. Tesla sells directly to consumers while Volvo, BMW, Mercedes and many others are launching subscription choices to provide owners much more flexibility.

The three new dealerships

Several companies are building online automobile dealerships. Shoppers find and purchase a car exclusively through these websites, and frequently, the cars have been sent to the purchaser. These online dealerships even take trade-ins.

Three providers dominate this distance, and they were founded in 2013. Carvana, Shift, and Vroom reach the market in the exact same time however have undergone different paths. One thing is clear though: it requires hundreds of millions of venture capital funds to construct an online dealership.

Emily Melton, co-founder and managing spouse, Threshold Ventures (officially called DFJ Ventures), points to customer ’therefore changing expectations and an optimized process across all kinds of vehicles. She invested in Shift’s recent $140m round.

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