The decision follows a significant drop in Vroom's share price, which fell from a high of $65.01 in August 2020 to under $2 in 2022. The company's shares closed at $0.53 on Monday and then dropped to $0.25 after the announcement of the e-commerce business closure. Vroom had previously acquired Vast Holdings, including CarStory, for $120 million and United Auto Credit Corporation for $300 million, both of which will continue to operate.
Key takeaways:
- Vroom is closing its online used car marketplace and will focus on auto financing and AI-powered analytics, leading to job losses for about 800 employees.
- The company plans to sell off its used vehicle inventory to wholesalers and suspend all used car transactions through vroom.com.
- Vroom will concentrate on its two other businesses, United Auto Credit Corporation and CarStory, both of which will continue to operate.
- The company's share price has significantly dropped, from a high of $65.01 in August 2020 to around $0.32 currently.