Vroom, Inc.
 | |
| Company type | Public |
|---|---|
| Template:NASDAQ | |
| Industry | Auto Finance/Automotive AI Analytics |
| Founded | August 2013 |
| Headquarters | Houston, Texas, US |
Key people | , Thomas Shortt (CEO) |
| Products | Used Cars |
| Revenue |  Template:US$ (2021) |
Number of employees | 612 employees (February 1, 2024) |
| Website | vroom |
Vroom, Inc. serves as the parent organization for United Auto Credit Corporation (UACC) and CarStory. Initially, Vroom operated as an online used car dealership and e-commerce platform enabling customers to purchase, sell, and finance vehicles digitally. However, as of January 22, 2024, the company halted its e-commerce automotive sales activities.
History
Established in August 2013 by Kevin Westfall and Marshall Chesrown under the name AutoAmerica, the business underwent a transformation in November 2014 when Elie Wurtman and Allon Bloch joined as co-founders. This shift refocused the company into a technology-driven platform and led to its rebranding as Vroom. The firm maintains a refurbishment center located in Stafford, Texas and was recognized on Forbes’ list of the Hottest E-Commerce Startups in 2015. The current CEO is Tom Shortt, who took over from Paul Hennessy, formerly at the helm of Priceline.com.
In December 2015, Vroom expanded by acquiring Texas Direct Auto, a Stafford-based dealership founded in 2002 that continues to operate under its own brand despite ownership by Vroom. That year, the combined entity achieved profitability and generated $900 million in revenue. By February 2018, Vroom ceased operations at its Whitestown, Indiana facility and reduced its workforce by roughly 25% across its New York City and Stafford locations. Later that year, in December 2018, the company secured $146 million in Series G funding led by AutoNation, facilitating renewed operational growth.
On January 22, 2024, Vroom announced the discontinuation of its e-commerce vehicle sales business to conserve liquidity and concentrate on maximizing value through its remaining divisions. The company continues to own and operate United Auto Credit Corporation (UACC), a prominent automotive finance provider, alongside CarStory, which specializes in AI-driven analytics and digital solutions for automotive retail. Both UACC and CarStory will maintain service to their external clients while pursuing expansion.
In November 2024, Vroom filed for Chapter 11 bankruptcy protection with an intent to restructure debt into equity supported by its creditors. The company attributed this move to a downturn in sales following a pandemic-related surge. Subsequently, Vroom emerged from bankruptcy protection on January 15, 2025.
Products
Unlike a peer-to-peer marketplace, Vroom operated as a comprehensive e-commerce platform that managed the entire purchase process with fixed, no-haggle pricing. The company partnered with over a dozen financial institutions to offer financing options and provided nationwide vehicle delivery. Every vehicle sold by Vroom underwent reconditioning, utilizing their proprietary RFID tracking and prioritization technology to streamline the refurbishment workflow. Buyers benefited from a seven-day return policy and a 90-day bumper-to-bumper warranty. Additionally, Vroom purchased vehicles directly from customers, who could receive cash vouchers by submitting photos and details of their cars online.
Funding
Vroom secured a total of $440 million in funding from a diverse group of investors, including AutoNation, L Catterton, General Catalyst Partners, Allen & Company, T. Rowe Price, John Elway, Steve Berrard (former CEO of Blockbuster and AutoNation), Cascade Investments (the investment firm of Microsoft co-founder Bill Gates), Jeffery Boyd (chairman of The Priceline Group), Bob Mylod (former CFO of The Priceline Group), PICO Venture Partners, Elie Wurtman, Allon Bloch, and Dan Gilbert (owner of the Cleveland Cavaliers and Quicken Loans).
On January 22, 2024, Vroom disclosed that it was unable to secure the necessary capital in the prevailing market conditions to continue its automotive retail business. This funding shortfall led to the closure of its automotive retail division and resulted in layoffs affecting 800 employees.
References
External links
- Companies founded in New York City in 2013
- Retail enterprises founded in 2013
- Web-based properties launched in 2013
- American enterprises established in 2013
- United States online automotive businesses
- U.S. internet marketplaces
- American auto dealerships
- Automotive-related websites
- Initial public offerings of 2020
- Publicly traded New York City companies
- Entities that filed Chapter 11 bankruptcy in 2024
- Companies traded on Nasdaq
- Used vehicle market
- Auto dealerships of the United States