Carvana
| Company type | Public |
|---|---|
| Industry | E-commerce, used car sales |
| Founded | 2012 |
| Founder | Ernest Garcia III, Ryan Keeton, Ben Huston |
| Headquarters | Tempe, Arizona , United States |
Area served | United States |
Key people | Ernest Garcia III (CEO and chairman), Dan Gill (Chief Product Officer) |
| Products | Pre-owned vehicles |
Number of employees | 13,700 (2023) |
| Website | www |
Carvana Co. is a digital retailer specializing in pre-owned vehicles, with its main office located in Tempe, Arizona. Established in 2012 by Ernest Garcia III, Ryan Keeton, and Ben Huston, the company operates within the e-commerce sector, focusing on used car sales throughout the United States. It is publicly listed on the NYSE under the ticker symbol CVNA and is included in the Russell 1000 index.
The company’s unique approach features innovative car vending machines that differentiate it within the used vehicle marketplace. Carvana’s rapid expansion earned it a spot on the 2021 Fortune 500 list, distinguishing it as one of the youngest firms to reach this achievement.
In 2023, Carvana reported revenues of US$10.8 billion alongside a net profit of US$450 million, despite a decline in total assets to US$7.07 billion. Employing roughly 13,700 individuals, Carvana continues to grow its market presence and global operations under the leadership of CEO and chairman Ernest Garcia III and Chief Product Officer Dan Gill.
The company’s organizational framework emphasizes innovation in e-commerce and customer service, securing its status as a significant contender in automotive retail.
History
Carvana was launched in 2012 by Ernest Garcia III, Ryan Keeton, and Ben Huston, with initial capital provided by used car retailer and finance firm DriveTime. In 2013, the company unveiled its inaugural car vending machine and now operates more than 30 such facilities nationwide. By 2015, Carvana introduced a fully automated coin-operated machine in Nashville, Tennessee.
April 2017 marked Carvana’s initial public offering on the New York Stock Exchange under the ticker CVNA. That same year, it acquired rival startup Calypso to strengthen its vehicle data analytics capabilities. The founders were featured on Fortune’s 40 Under 40 list in 2017. In 2018, Carvana purchased Car360—a startup supported by Mark Cuban—for $22 million to incorporate advanced smartphone imaging technologies such as 3D computer vision and augmented reality into its platform. In 2022, Carvana broadened its real estate portfolio by acquiring ADESA, the second-largest wholesale auto auction network in the U.S., for $2.2 billion.
In response to the COVID-19 outbreak in March 2020, Carvana implemented contactless delivery and pickup options. These initiatives spurred a 25% rise in vehicle sales during Q2 2020 and generated $1.12 billion in gross revenue from April to June—a 13% increase. The company sold 244,111 vehicles that year and recorded $5.587 billion in annual revenue, becoming the second-largest online used-car retailer in America. By November 2023, Carvana provided next-day delivery services across more than 300 markets nationwide. The pandemic-driven shift toward digital vehicle purchasing significantly boosted Carvana’s market valuation.
In August 2023, Carvana introduced same-day delivery for car purchases and sales in selected states including Alabama, Arizona, Indiana, North Carolina, Georgia, Dallas-Fort Worth, and Central Florida.
Following missed growth objectives in May 2022, Carvana reduced its workforce by about 12%, equating to nearly 2,500 employees. Concurrently, its stock value dropped roughly 90% from peak levels amid waning investor confidence. By November 2022, after disappointing third-quarter financial results and an 8% decrease in used vehicle sales totaling 102,570 units, analysts pointed to rising borrowing expenses and high used-car prices as key challenges.
By February 2024, Carvana had restructured both operations and debt to mitigate bankruptcy risks. The company cut over 4,000 jobs and eliminated $1.1 billion in annual expenses. It launched proprietary software named Carli to streamline end-to-end vehicle reconditioning workflows and developed logistics solutions for route planning and driver management. Furthermore, Carvana incorporated generative artificial intelligence technologies to automate various processes—substantially improving operational efficiency as part of a strategic pivot from rapid expansion toward sustainable cost control.
Regulatory history
In August 2021, North Carolina regulators temporarily prohibited Carvana's vehicle vending machine in Raleigh due to inadequate inspections and failure to supply vehicle titles as mandated by state regulations. While the vending machine was inactive, Carvana maintained its operations through other nearby locations, and the machine recommenced service in January 2022.
Between May 10 and May 25, 2022, Illinois authorities suspended Carvana's business license following multiple customer grievances concerning delays in delivering vehicle titles beyond the 20-day requirement and the improper issuance of out-of-state temporary registrations. Although the suspension was initially lifted under stringent operational conditions, it was reinstated on July 18, 2022, after further breaches occurred. Paul Breaux, serving as Carvana’s Vice President, faced misdemeanor charges connected to these compliance failures. Subsequently, on July 29, 2022, Carvana secured a temporary injunction permitting it to resume Illinois operations amid ongoing legal disputes.
Comparable regulatory difficulties have arisen for Carvana in other jurisdictions such as Pennsylvania, where a class action lawsuit claims violations of the state’s Unfair and Deceptive Trade Practices Act related to ownership transfer procedures; Carvana denies any wrongdoing.
On October 7, 2022, Michigan authorities revoked Carvana’s dealership license in Novi due to "imminent harm to the public," citing breaches of the Michigan Vehicle Code. This action followed a probation period initiated in May 2021 after a prior inquiry. Despite the suspension, the Novi facility briefly continued its activities.
To bolster its online car purchasing platform and home delivery services, Carvana has actively pursued legislative reforms in states including Illinois, Iowa, and Oregon aimed at enabling remote vehicle transactions and safeguarding home delivery of automobiles. These initiatives reflect the company’s commitment to pioneering advancements in digital automotive retail.
Sponsorships
Since 2018, Carvana has been a sponsor of Phoenix Rising Football Club in the USL Championship and has supported seven-time NASCAR Cup Series champion Jimmie Johnson starting in 2021. In December 2023, Carvana further expanded its sports marketing portfolio by becoming the official kit sponsor for Major League Soccer’s Chicago Fire FC.