The CEO of a popular used car platform has spoken out since his website closed.
Vroom’s Thomas Shortt explained why he made this decision and why it was one of the most difficult of his career.
3
The online car website allowed drivers to sell and buy used vehicles.
Vroom closed its e-commerce website and operations on January 22, 2024.
“Vroom has suspended all purchases and sales of used vehicles,” the Texas-based company said at the time.
“We are discontinuing Vroom’s e-commerce operations and closing our used vehicle dealership business.”
“Obviously, we are very disappointed with this result,” Shortt said in a press release. release in January.
“Two years ago, we set out to build a well-oiled machine, improve unit economics and dramatically improve the customer experience, and I believe we have achieved those goals.”
The CEO said he took this drastic measure to preserve the company’s value, according to Automotive News.
Shortt said the company did not have enough outside money to expand its online site and said it had two options to choose from.
The CEO said the company had to wait until March 2024 for tax return money to reach people’s accounts or close Vroom immediately and liquidate the remaining assets.
Shortt added that the company entered this difficult period already leaning towards the second option.
“We had already done these calculations before we got to this point,” he said.
Vroom’s boss described the decision as “harrowing” and explained that he found the next steps particularly difficult.
“The thing that weighed heavily on me was telling all of our people,” he said.
“I mean, that was the hardest day of my entire career – January 22nd.”
Vroom did not close completely because the company still has two other businesses, which do not sell cars.
CarStory provides auto dealers with AI-based digital analytics and services, and United Auto Credit is a credit lender.
What weighed heavily on me was telling all of our people.”
Thomas Short
“I think the way to think about it is we’ve always been an automotive company and we’re still an automotive company,” the CEO said.
“We’re just not buying and selling cars anymore.”
When Vroom shut down its e-commerce operations, it laid off about 800 employees, according to the CBS affiliate KTVT.
The company was hit with a lawsuit filed by the Texas Attorney General’s Office, which alleged the company “engaged in deceptive business practices.”
This case was settled for $3 million in December 2023.
US Sun has reached out to Vroom for comment.
3
This story originally appeared on The-sun.com read the full story
