Overview

• eBay has signed an agreement to acquire Caramel, a Los Angeles-based startup offering a platform for completing vehicle transactions online.
• Caramel's services include title transfer, identity verification, financing, insurance, and vehicle delivery, making car buying and selling more seamless.
• The acquisition is intended to enhance trust and reduce complexity for eBay Motors users, addressing risks like fraud in online vehicle transactions.
• Caramel, launched in 2023 after raising $19 million in funding, has partnerships with major marketplaces and insurers like Zurich North America.
• The deal is expected to close in the first quarter of 2025, as eBay positions itself to compete with Amazon's recent entry into the online car sales market.