British Cazoo launched in France and Germany
Cazoo, one of Europe’s leading online car retailers, announced on Wednesday (December 1st) the launch of its used car marketplace in France and Germany, after taking its first step towards European expansion by February with the purchase of Germany’s first car subscription. service, Cluno.
According to a Press release, the UK-based company already has “hundreds of cars” available in both European countries, all with 12-month warranties. Plus, buyers will enjoy free delivery of the vehicle right to their door, backed by a seven-day money-back guarantee.
“We are very happy to have launched today in France and Germany. We have redesigned car buying to make it simple and convenient while adding transparency and quality to give consumers complete peace of mind when buying their next car, ”said Alex Chesterman, founder and CEO of Cazoo, in a statement.
Learn more: Acquisitions fuel growth in the European used vehicle market
The British retailer added that Wednesday’s launch was just the start of a plan to expand further into other European countries over the coming months, with the aim of expanding its fleet to thousands of cars. The company also intends to add new features to its European proposal, such as buying cars directly from consumers, car financing and all-inclusive monthly subscriptions.
The company has also taken steps to consolidate its leadership position in the local UK market, embarking on a series of acquisitions this year after purchasing UK-based car subscription service Drover in December 2020.
Related news: Car dealership Cazoo acquires SMH Fleet Solutions
In September, the company acquired UK data analysis platforms Cazana and SMH Fleet Solutions (SMH), one of the UK’s leading vehicle preparation, logistics and storage companies. Cazoo then expanded its retail offering to include commercial vehicles, acquiring Bristol-based online van retailer Van365, one of the UK’s leading independent online commercial vehicle retailers.
Related news: Cazoo expands to commercial vehicles with acquisition of Vans365
Founded in 2018, the used car marketplace is one of the fastest growing companies in Europe, selling over 45,000 cars in the UK since its launch.
Read more: UK online car retailer Cazoo projects $ 1 billion in revenue by end of 2021
In September, the company reported a record performance for its pandemic-driven first half 2021 financial results, with more than 20,000 car purchases and a 521% year-over-year increase in revenue to £ 248million ( the equivalent of $ 335.6 million).
Also see: Cazoo’s public procurement debut echoes the engines of automotive e-commerce
The used car website raised $ 800 million at a valuation of around 4.5 billion pounds ($ 6 billion) when it went public in August of this year, claiming the title of the most major listing of a UK company on the New York Stock Exchange to date.
Booming used car market
Competition in the used car industry continues to intensify as the pandemic continues to fuel an increase in online car sales and consumers appreciate the convenience of buying and selling used cars online. line.
Read also: Pandemic increases digital car sales for online platforms
In October, Constellation Automotive Group acquired Amsterdam-headquartered CarNext, a deal it says will create Europe’s largest digital used car market with more than 2.5 million annual car sales.
The company said the addition of CarNext will expand Constellation’s offering in seven major European countries, allowing the group to trade in more than 2.7 million cars through its business-to-consumer (B2C), business- to-business (B2B) and the general public. business-to-business marketplaces (C2B). Earlier this year in May, the group raised more than £ 1 billion to expand its business, receiving funds from leading investors including Adia and Soros Fund Management.
Another actor, Motorway, recently announced that it has raised $ 190 million in new funding for a valuation of $ 1 billion, giving the UK its latest unicorn. Founded in 2017, the used car marketplace, which uses an auction system to match auto retailers with private sellers, sold £ 306million worth of used cars in the third quarter of 2021, an increase of 300% compared to the same period last year.
Read more: Sequoia could invest $ 7.2 billion in Auto1 as IPO approaches
Also see: Auto1 online car marketplace plans to go public
But British companies are not the only ones dominating the European used car space. Berlin-based Auto1 is one of the region’s largest digital automotive platforms, serving customers in more than 30 countries through its merchant (AUTO1.com) and retail (Autohero) brands.
Founded in 2012, the SoftBank-backed company generated € 2.83 billion ($ 3.2 million) in revenue in 2020; earlier this year, it raised $ 2.2 billion in an initial public offering (IPO).