Carvana's famous car vending machine may seem to be inefficient and more like a marketing stunt than a thriving business avenue, but it is important to the company and its investors.
The above quote is the simple premise behind Carvana's mission to disrupt the traditional used-car-buying process with its leading e-commerce platform. Carvana has picked an industry begging to be disrupted; 81% of consumers don't enjoy the car-buying process and the largest dealer brand accounts for only 1.8% of U.S. market share.
In other words, Carvana needs to differentiate itself in a highly fragmented market begging for a better, more consumer-friendly process. The good news for investors? Carvana's unique car vending machine can help do just that, and here's why it's more than just a gimmick.
Let's use Carvana's most recently launched vending machine as an example. After the consumer has shopped the list of vehicles online and made a purchase decision, they can then schedule an as-soon-as-next-day car vending machine experience or a home delivery. In Indianapolis, the vending-machine option means heading to the seven-story high glass building holding up to 26 vehicles. Upon arrival, consumers are given an oversized coin to be inserted in the receptacle to vend their purchased vehicle.
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