🚗 Carvana Sells 2 Millionth Vehicle
Carvana, the e-commerce platform for used cars, reached a significant milestone this quarter, selling its 2 millionth vehicle since launching in 2013. "It took nine years to reach 1 million. The second million only took two and a quarter years," said CEO Ernie Garcia III. This rapid growth reflects Carvana’s agility and strength in online vehicle sales, supported by innovative infrastructure, including 39 iconic car vending machines. Carvana’s flat-bed truck fleet, offering home pick-up and delivery, is also making its mark across multiple U.S. markets.
📈 Q3 Sales and Market Challenges
Carvana’s Q3 earnings report showed strong growth, with retail unit sales of 108,651, up 34% from last year’s Q3. Year-to-date sales through September rose 27.5% to 301,969 units. Carvana’s growth occurred amid a turbulent market for used cars, where wholesale prices have seen a decline after a pandemic-induced spike. As new car supply dwindled in recent years, used car prices rose dramatically, affecting consumer demand and profits. Gradually normalizing wholesale prices are now improving margins for Carvana and other sellers in this space.
🏗️ Expanding Infrastructure with ADESA Purchase
In 2022, Carvana expanded its logistics network by acquiring 56 ADESA auction sites for $2.2B from KAR Auction Services. This move enhanced Carvana’s ability to source, recondition, and distribute vehicles. According to Garcia, closer physical infrastructure allows Carvana to operate more efficiently, reducing transport costs and expanding same-day delivery options. ADESA’s facilities provide Carvana a new edge, supporting its model of sourcing cars directly from customers for quicker turnarounds on reconditioned vehicles.
🏡 Service Expansion in U.S. Markets
Carvana’s recent investments now allow it to serve over 300 U.S. markets with home delivery and pick-up. Customers in parts of 16 states can access same-day delivery, a feature Carvana is eager to expand. Garcia stated that Carvana’s goal is to establish a robust local infrastructure in order to support scalable, rapid delivery solutions that increase accessibility for customers. Moving forward, Carvana plans to continue building up its logistics and delivery capacities to strengthen its competitive position.
Will Carvana’s delivery expansion reshape car buying?
