SlideShare a Scribd company logo
»jiabinz
• Dealer without a
showroom
• Mission: make
used car buying
easier
• Using internet
and visual tools
2CARVANA Introduction
Sample Product: Browsing 3
• 360 degree
view
• imperfection
listed
• interior &
engine bay
view
Sample Product: Financing 4
• Instant
financing
calculation
• Extended
warranty
available as
“CarvanaCare”
Sample Product: Shipping 5
• Promotes
fancy shipping
experience
• Difficult to live
up to the
promise
• Buying a used car at
dealership sucks:
• Inspect the car
• Negotiating the price
• Getting finance terms
6CARVANA makes sense:
• CARVANA nailed it by:
• Lightly used car only
• Fixed price, lower than
dealers
• Finance terms calculated
Price Comparison:
Carvana BMW Ann Arbor
Price 24,900 30,000
Mileage 31988 miles 35947 miles
Feature similar similar
7
»2015 BMW 328 xDrive
1. Source Vehicles
• Auction
• Public
• other sources
2. Reconditioning
• Inspection center
• Paint, mechanical, etc.
Business Model: 8
3. Photography
• Photo booth and software
process
• 15 min / vehicles
4. Merchandising
• List imperfections
• List all features
• Transparency
5. Buy & Finance
• self-service***
• 10% customers complete in
15 mins
6. Deliver & Pick up
• Own fleet delivery?
• Pick up at vending machine
• 7-day return policy; 4%
returns; cost 10 dollar/sale
Company history:
CEO: Ernie Garcia III
• Stanford
• Treasurer, DriveTime
• Dad: Ernie Garcia II
• Owner of DriveTime
• Owns large part of Carvana
• Has apartment at Trump Tower NY
• March 2011, Ernie started Carvana
• Nov 2017, Carvana launches it’s 40th Market
9
Finance: before IPO
Series A Jan 23, 2013 DriveTime 50 million
Series B May 15, 2015 undisclosed 90 million
Series C Aug 10, 2016 undisclosed 1.6 billion
10
Finance: After IPO 11
»Nov 07, 2017,
Ally provides $2
billion in financing
to Carvana
Secret sauce:
Right time:
Internet
everything
DriveTime:
shared
infrastructure,
funding support,
shared expertise
Customer
focused:
Amazon for
cars?
Fancy marketing
12
Competition: 13
It will continue to grow, but won’t be the biggest winner in
the future.
- The company is expanding at a fast speed, it also has expertise and funding that is needed.
- not disruptive enough.
- failed to deliver great customer experience
- The future of car owning is remain to be seen as car sharing and self-driving technology develops dramatically
14
Prediction
Thanks!
My unique name is: jiabinz
15

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Carvana slides

  • 2. • Dealer without a showroom • Mission: make used car buying easier • Using internet and visual tools 2CARVANA Introduction
  • 3. Sample Product: Browsing 3 • 360 degree view • imperfection listed • interior & engine bay view
  • 4. Sample Product: Financing 4 • Instant financing calculation • Extended warranty available as “CarvanaCare”
  • 5. Sample Product: Shipping 5 • Promotes fancy shipping experience • Difficult to live up to the promise
  • 6. • Buying a used car at dealership sucks: • Inspect the car • Negotiating the price • Getting finance terms 6CARVANA makes sense: • CARVANA nailed it by: • Lightly used car only • Fixed price, lower than dealers • Finance terms calculated
  • 7. Price Comparison: Carvana BMW Ann Arbor Price 24,900 30,000 Mileage 31988 miles 35947 miles Feature similar similar 7 »2015 BMW 328 xDrive
  • 8. 1. Source Vehicles • Auction • Public • other sources 2. Reconditioning • Inspection center • Paint, mechanical, etc. Business Model: 8 3. Photography • Photo booth and software process • 15 min / vehicles 4. Merchandising • List imperfections • List all features • Transparency 5. Buy & Finance • self-service*** • 10% customers complete in 15 mins 6. Deliver & Pick up • Own fleet delivery? • Pick up at vending machine • 7-day return policy; 4% returns; cost 10 dollar/sale
  • 9. Company history: CEO: Ernie Garcia III • Stanford • Treasurer, DriveTime • Dad: Ernie Garcia II • Owner of DriveTime • Owns large part of Carvana • Has apartment at Trump Tower NY • March 2011, Ernie started Carvana • Nov 2017, Carvana launches it’s 40th Market 9
  • 10. Finance: before IPO Series A Jan 23, 2013 DriveTime 50 million Series B May 15, 2015 undisclosed 90 million Series C Aug 10, 2016 undisclosed 1.6 billion 10
  • 11. Finance: After IPO 11 »Nov 07, 2017, Ally provides $2 billion in financing to Carvana
  • 12. Secret sauce: Right time: Internet everything DriveTime: shared infrastructure, funding support, shared expertise Customer focused: Amazon for cars? Fancy marketing 12
  • 14. It will continue to grow, but won’t be the biggest winner in the future. - The company is expanding at a fast speed, it also has expertise and funding that is needed. - not disruptive enough. - failed to deliver great customer experience - The future of car owning is remain to be seen as car sharing and self-driving technology develops dramatically 14 Prediction
  • 15. Thanks! My unique name is: jiabinz 15