Disruptors in used automotive retailing in Europe (1)

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Unclear value proposition – they look expensive Personal vehicles may not be a good fit for the subscription model Generational assumptions about vehicle ownership are not playing out Subscriptions undermine the intimate relationship between people and their vehicles joined by the potential for subscription models and the emergence of dimensions of mobility: autonomous driving, connectivity, electrification and shared mobility (ACES). As with all forms of disruption, success centers upon delivering products, services or processes that solve issues that exist in established procedures, making life easier for potential customers, or by taking cost or friction out of established methods. On the face of it, automotive retailing looked ripe for disruption, but it has yet to happen on any scale to a large degree. Despite millions of dollars invested in startups and OEMs, the jury is still out on their future. Several OEMs have exited the sector, although others hope to be back as electric vehicle (EV) volumes grow. OEMs apart, many of the brands once heralded as the future have disappeared. J.D. Power summarized the subscription challenge succinctly: ver the last ten years, there have been multiple references to the potential for disruption in motor retailing. Behind the many events, white papers and articles championing the potential for change has primarily been the trend to digitization. In turn, this has been However, as investor service the Motley Fool observed, "Carvana just crushed earnings, but investors should be careful." Their observation was that while there was an unprecedented increase in used car values seen last year, these values could well fall again, leaving the business exposed to inventory value losses. t should come as no surprise that online car sales present an obvious opportunity. Launched in 2012 in the USA, Carvana is arguably the most recognized online used car retailer. In August 2021, it announced its first-ever profit.

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