Carvana is an online used car retailer with vending machines located around the United States. The company was founded in 2012 by Ryan Keeton, Ben Huston, and Ernest Garcia III. The company is the fastest growing online used car retailer in North America and was recently one of the youngest companies to be added to the Fortune 500 list. While Carvana is currently the only American company selling cars in vending machines, its growth and success have not gone unnoticed by other players. In this article, we’ll take a look at some of the company’s major competitors.
Competitor
Description
Key Insights
Competitive Overlap
Differentiation
Vroom
An online car retailer known for its platform that allows customers to buy, sell, and finance vehicles entirely online. Vroom competes directly with Carvana in the online car buying and selling market.
Vroom offers an online platform for buying, selling, and financing cars, directly competing with Carvana in the same market segment, targeting consumers seeking a digital car shopping experience.
Both compete in the online car buying and selling market, providing a fully digital car purchasing and selling process.
Vroom’s focus on an extensive inventory and financing options.
Shift
An online marketplace for buying and selling used cars that offers home test drives and delivery services. Shift competes with Carvana in the online used car marketplace.
Shift provides an online platform for buying and selling used cars with home test drives and delivery options, directly competing with Carvana in the same market, targeting consumers looking for convenience.
Both compete in the online used car marketplace, offering home test drives and delivery services to simplify the car buying process.
Shift’s emphasis on the test drive and in-person experience.
TrueCar
An online automotive marketplace that connects consumers with a network of dealerships and offers price transparency. TrueCar competes with Carvana in the online car shopping and price comparison market.
TrueCar provides a platform for consumers to research, compare prices, and connect with local dealerships, competing with Carvana in segments like online car shopping and pricing transparency.
Both compete in the online car shopping market, focusing on price transparency and connecting consumers with local dealerships.
TrueCar’s network of local dealerships and price negotiation options.
Autotrader
An online marketplace for buying and selling new and used cars. Autotrader competes with Carvana in the online car listing and classifieds market.
Autotrader offers a platform for individuals and dealerships to list and browse new and used cars, competing with Carvana in segments like online car listings and classifieds.
Both compete in the online car listing market, providing a wide range of vehicles for sale from various sellers.
Autotrader’s focus on connecting buyers and sellers without facilitating the transaction.
Cars.com
An online automotive classifieds platform that connects car buyers and sellers. Cars.com competes with Carvana in the online car listings and classifieds market.
Cars.com offers a platform for individuals and dealerships to list and search for cars, directly competing with Carvana in the online car listings and classifieds segment, targeting consumers looking for various options.
Both compete in the online car listings and classifieds market, providing a platform for listing and searching for vehicles.
Cars.com’s focus on providing automotive information and research tools.
Carmax
A chain of used car superstores that offers in-person car buying and selling services. Carmax competes with Carvana in the used car retail market, including both physical and online sales.
Carmax operates physical superstores for buying and selling used cars, as well as an online platform. It competes with Carvana in segments like used car sales, targeting consumers who prefer in-person interactions.
Both compete in the used car sales market, offering a mix of physical locations and online sales options.
Carmax’s extensive network of physical locations and in-person customer service.
CarGurus
An online automotive marketplace that connects consumers with dealerships and private sellers. CarGurus competes with Carvana in the online car shopping and research market.
CarGurus provides a platform for consumers to research, compare prices, and connect with dealerships and sellers, competing with Carvana in segments like online car shopping and research.
Both compete in the online car shopping market, offering tools for consumers to research and connect with sellers.
CarGurus’ focus on pricing analysis and dealer reviews.
Shift
A peer-to-peer car marketplace that allows individuals to list and sell their cars directly to buyers. Shift competes with Carvana in the online used car marketplace, particularly in peer-to-peer sales.
Shift offers a platform for individuals to list and sell their cars directly to buyers, competing with Carvana in segments like online used car sales and peer-to-peer transactions.
Both compete in the online used car marketplace, with Shift’s emphasis on peer-to-peer sales and facilitating transactions between private sellers and buyers.
Shift’s focus on connecting private sellers with potential buyers.
YourMechanic
An online platform that connects car owners with mobile mechanics for car maintenance and repair services. YourMechanic indirectly competes with Carvana by offering car maintenance and repair services to car owners.
YourMechanic provides a platform for car owners to book mobile mechanics for maintenance and repair services, indirectly competing with Carvana by offering services that keep cars running smoothly.
While not directly competing in car sales, both companies are part of the automotive ecosystem, with YourMechanic focusing on car maintenance and repair services.
YourMechanic’s focus on convenience and on-demand car services.
CarGurus is an automotive research and shopping website based in Cambridge, Massachusetts.
The platform, which was created by TripAdvisor co-founder Langley Steinert, compares local listings for new and used cars and can be used to contact sellers. The company uses algorithms to analyze car features, compare prices, and evaluate dealership reputation.
Essentially, CarGurus acts as a trustworthy intermediary between the buyer and seller. The company does not operate car vending machines, but many prefer using this more traditional option for prompt and efficient customer service.
CarMax
CarMax is a used vehicle retailer operating in the United States since September 1993. The company currently operates 225 locations.
Users can browse a wide selection of used cars at fixed prices, with curbside pickup and home delivery available in many locations. CarMax allows consumers to compare cars based on their features, mileage, and the number of previous owners.
CarMax sold over 750,000 vehicles in FY2021 and is considered to be America’s largest used-car retailer. To combat increasing competition from the likes of Carvana, it unveiled its Omni-channel platform giving customers more freedom to purchase cars online.
Vroom
Vroom runs a peer-to-peer e-commerce platform selling used vehicles. The company makes money through the sales of used vehicles that passed the quality standards to be sold on the platform; Wholesale auction revenues for vehicles that didn’t meet quality standards to be sold directly on the platform; and fees from value-added products (insurance and financing).
Vroom is a used car retailer and eCommerce company based in New York City and founded by Kevin Westfall and Marshall Chesrown in 2013.
Vroom is an eCommerce service that manages the entire transaction, with none of the haggle pricing commonly seen when buying or selling a used vehicle. The company also offers car financing from twelve major banks and will deliver cars to customers irrespective of their location within the United States.
Cars sold on the Vroom platform are also reconditioned, with the process automated by proprietary technology and software. The company will also purchase cars from consumers who submit the requisite photos and other information.
Cars.com
Cars.com is an automotive classified website launched in 1998 and headquartered in Chicago, Illinois.
The service has been matching buyers with sellers for over two decades, with the purchase of new, used, and certified pre-owned vehicles occurring offline. Cars.com also offers extensive research on a range of models and helpful tips and tricks to buying used cars.
Carvana is an online used car retailer founded in 2012 by Ryan Keeton, Ben Huston, and Ernest Garcia III. The company is the sole provider of used car vending machines in the United States.
Carvana’s competitors include CarGurus, an automotive research and shopping website created by TripAdvisor co-founder Langley Steinert. Dealership-based used car retailer CarMax is also a significant competitor after introducing a platform for buying cars online.
Additional competitors include Vroom, an online facilitator offering financing and reconditioned cars, and Cars.com, the largest classifieds platform in the North American market.
Key Highlights
CarGurus:
CarGurus is an automotive research and shopping website that allows users to compare local listings for new and used cars.
The platform helps buyers and sellers connect, and it analyzes car features, prices, and dealership reputation.
CarGurus doesn’t operate car vending machines but provides a more traditional option for car buying.
CarMax:
CarMax is a used vehicle retailer operating since 1993 with over 225 locations.
It offers a wide selection of used cars at fixed prices, along with curbside pickup and home delivery options.
CarMax is America’s largest used-car retailer and introduced an Omni-channel platform for online car purchases.
Vroom:
Vroom is an eCommerce company that sells used vehicles through a peer-to-peer platform.
The company generates revenue from used vehicle sales, wholesale auction revenues, and value-added products like insurance and financing.
Vroom provides a seamless transaction process, including car financing and nationwide delivery.
Cars.com:
Cars.com is an automotive classified website established in 1998.
It helps buyers and sellers connect for the purchase of new, used, and certified pre-owned vehicles.
While not as automated as Carvana, Cars.com offers research, tips, and tricks for buying used cars.
Gennaro is the creator of FourWeekMBA, which reached about four million business people, comprising C-level executives, investors, analysts, product managers, and aspiring digital entrepreneurs in 2022 alone | He is also Director of Sales for a high-tech scaleup in the AI Industry | In 2012, Gennaro earned an International MBA with emphasis on Corporate Finance and Business Strategy.
