Motors, a privately-owned frail vehicle search platform, has this day announced it has purchased Cazoo, the frail vehicle unicorn that went into administration in May per chance per chance also fair, for an undisclosed sum.
Cazoo, founded by Zoopla entrepreneur Alex Chesterman, suddenly made a reputation for itself when it launched in 2018. It turned the quickest UK firm to end unicorn region, and featured twice in our list of the high 100 UK startups.
However after various financial challenges, and a original industry landscape, the emblem went bust final month, and turned into compelled to lay off hundreds of workers contributors.
In May per chance per chance also fair, Cazoo acknowledged in an announcement that it had been struggling to catch a buyer. Motors has now confirmed it has obtained Cazoo, and plans to turn the emblem into a cell-first marketplace.
What is Motors?
CarDealer first reported in early May per chance per chance also fair that Motors turned into in talks to compose the Cazoo trace, which turned into previously valued at over £5m, for a minimize-mark deal.
Motors is a internet-based platform for frail vehicles. It started as a user internet quandary, Motors.co.uk, and turned into purchased by deepest equity companies 03 Industries and Novum Capital in 2021.
In November 2023, Motors.co.uk rebranded as Motors. This day, it provides vehicle dealers with entry to multisite promoting for frail vehicles. All of that is powered by a joined-up quandary network, that comprises companions eBay and Gumtree, and, quickly, Cazoo.
Motors Chief Executive Barry Judge told CarDealer journal, “This acquisition provides an curious different for dealers to faucet into Cazoo’s awareness and visitors as section of the Motors network.
“All seller companions that are are living on our Motors MultiSite purposes will routinely again from publicity on Cazoo, free of payment.”
Cazoo goes cell
One most critical trigger for Cazoo’s financial troubles turned into the expenses it incurred by its offline operations. Cazoo had purchased dear leaseholds for its 10 ‘customer care centres’, positioned all the arrangement thru the UK, along side a most critical £1 million showroom in Wembley, central London.
Earlier this Three hundred and sixty five days, Cazoo announced plans to rent the sites and transition to a marketplace industry model as a arrangement to chop help down overheads.
In step with CarDealer, Motors will lean into the approach by launching a brand new Cazoo app within the next few weeks. This can then delivery a brand new internet quandary with over 250,000 frail vehicle listings.
Unique freeway for Cazoo
The sale marks the end in a chain of collisions for Cazoo. Following a lack of £704m in 2022, and a extensive £544m deficit in 2021, the startup halted gross sales firstly of this Three hundred and sixty five days and began to dump its stock to decrease cash burn.
Investors did no longer acknowledge neatly to the action. In April, Paul Whitehead, who had taken over after Chesterman’s exit final January, stepped down from his feature as CEO.
One month later, Cazoo warned investors it might shuffle bust if it failed to urgently lift capital. This worst-case scenario in some arrangement turned actuality.
Final week, Cazoo Crew published that the board had voted unanimously to find yourself the firm and appoint voluntary liquidators.
Judge is now optimistic that Motors can turn things round. He acknowledged, “Despite its challenges as a industry, Cazoo has surely change into a household name with vehicle merchants.
“We have gotten the abilities and stock to suddenly set the brand new Cazoo quandary as a contemporary marketplace for frail vehicles.”