Overview

• 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.