Cazoo: What went wrong for the online used car retailer?

It’s a dramatic fall from grace for the enterprise, which surged in reputation in the course of the pandemic and subsequent lockdowns.

Again in 2021, should you hadn’t used Cazoo, you in all probability would have seen or heard of it. Its branding was splashed all over the place, with the corporate sponsoring Premier League soccer groups Aston Villa and Everton, in addition to a bunch of different main sporting occasions like darts and snooker.

Cazoo was totally different to different extra conventional automobile sellers – it was a tech enterprise making an attempt to shake up a well-established order.

The platform allowed customers to purchase, part-exchange and finance autos fully on-line. Individuals may order whereas sitting on the couch, and the car can be delivered to their house in as little as 72 hours, with a seven-day returns coverage.

Launched in late 2019, the pandemic massively boosted the agency’s fortunes. In addition to Covid restrictions which means individuals may solely purchase second-hand vehicles on-line, a worldwide microchip scarcity that disrupted new car manufacturing additionally performed into Cazoo’s palms as used automobile costs soared.

The setting fuelled an astonishing improve within the firm’s worth. When it listed on the New York Inventory Alternate in September 2021, it was valued at a whopping $7bn (£5bn). Now, its valuation has dropped to simply $30m.