All articles tagged with #vroom
Vroom's shares plummet after announcing a 90% reduction in its workforce and the closure of its e-commerce business, while Lockheed Martin's stock dips due to warnings of potential 2024 sales below expectations despite posting strong fourth-quarter earnings. On the other hand, Fisker expects to deliver its unsold electric vehicles from 2023 by the end of the first quarter and is gaining traction with its dealer partner model.
Vroom is discontinuing its used vehicle dealership business and winding down its eCommerce operations to focus on its automotive finance company United Auto Credit Corp. and CarStory, an AI-powered analytics provider. The company plans to lay off 800 employees and implement a Value Maximization Plan to wind down its eCommerce operations by March 31, citing challenges in raising capital and achieving profitability in the current market.
American used-vehicle company Vroom is shutting down its e-commerce operations and used vehicle dealership business, resulting in the layoff of approximately 90% of its workforce, or around 800 employees. The company plans to sell its current used vehicle inventory through wholesale channels and halt purchases of additional vehicles, while its automotive finance and AI-powered analytics subsidiaries will remain active. Vroom, which peaked at a valuation of over $8 billion in 2020, has seen its market cap fall to $75 million and recorded a net loss of $83 million in the third quarter of last year.
Vroom, a major online used car seller, has announced the suspension of its online car transactions and plans to liquidate its inventory due to mounting losses and a struggling used car market. The company's financial situation has rapidly worsened, with a significant decrease in online sales and profit per vehicle. This development raises questions about the viability of online used car sales and the challenges of selling used cars without customers being able to physically inspect them.
Vroom Inc., once valued at $2.5 billion, is winding down its online used-car sales business to focus on its auto finance and analytics services, as its market cap has plummeted to less than $100 million. The company's shares fell over 50% in the extended session, and it plans to sell its current inventory to wholesale businesses while halting Vroom.com transactions. Despite efforts to raise capital, Vroom was unable to do so and is now committed to managing its remaining businesses and deploying capital prudently.
Vroom, a leading ecommerce platform for used vehicles, has announced the wind-down of its ecommerce operations and used vehicle dealership business to preserve liquidity and focus on maximizing stakeholder value through its remaining businesses, United Auto Credit Corporation and CarStory. The company is suspending transactions through vroom.com, planning to sell its current used vehicle inventory through wholesale channels, halting purchases of additional vehicles, and executing a reduction-in-force. Despite efforts to raise additional capital, Vroom was unable to do so and is now committed to responsibly managing its remaining businesses and prudently deploying its capital to maximize value for stakeholders.