Vroom to Discontinue E-Commerce Operations, Shares Plunge

Unable to secure necessary funding, the company will focus on its vehicle financing business and AI-powered analytics service.

Vroom, an online vehicle e-commerce platform, has announced it will discontinue its e-commerce operations and wind down its used vehicle dealership business.
The decision comes after the company was unable to raise the necessary capital to fund its e-commerce operations.
Vroom plans to continue operating its vehicle financing business, United Auto Credit Corporation (UACC), and CarStory, its AI-powered analytics service for automotive retail.
The company also intends to sell its used cars through wholesale channels, halt purchases of additional vehicles, and reduce its workforce to meet its scaled-back operations.
Vroom shares plunged over 50% following the announcement.