With the increase of online retail, purchasing a vehicle online has become as easy as reserving a hotel room or buying food. Joydrive, a startup company out of Seattle, is taking advantage of these changes and recently fund raised money in order to expand their car retail platform.
Started in 2016, Joydrive currently operates in 16 states, is partnered with 140 car dealerships, and currently has around 30,000 new and used vehicles on their platform.
Recently they were able to raise $5.7 million, $1.1 million of which in just the previous month, a total of $10 million fund raised to date.
These new funds don't come from the usual venture capitalist route, but from auto dealers who can see what Joydrive is actually like.
“These strategic dealers are industry influencers uniting together to lead the change in auto sales,” said Joydrive CEO Hunter Gorham.
The company allows customers to buy cars online and skip the traditional auto dealership visit. Joydrive's platform provides vehicle options from several dealerships all at once.
Joydrive's focus on the shifting market trends while building relationships with auto dealers isn't alone. Startup companies like Tred, Vroom, Shift, and Carvana are all deepening ties with traditional car dealers.
Joydrive is currently boasting themselves as the country's biggest online platform for used and new vehicles. The company operates by never having their own vehicle inventory.
“As Uber and Airbnb own no cars or homes, Joydrive’s asset-light model leverages existing inventory and infrastructure of its select partners,” Gorham said. “Thus, Joydrive requires dramatically less capital than online used-car only dealers that own their inventory.”
The company doesn't add any fees to customers and includes financing options and trade-in services on their platform. They also offer home delivery and claim that less than 1% of their vehicles are returned. Joydrive brings in revenue by charging monthly fees to dealers.
“I couldn’t send my own mom in to buy a car unless I went and protected and guarded her every step of the way,” he told GeekWire last year.
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