Our Story
We are Carvana Co., an online used car retailer based in Tempe, Arizona. We are proud to have been included in the Fortune 500 list in 2021, one of the youngest companies to achieve this feat. Our operations span several continents, where we offer employment, investment, and earning opportunities to our partners and collaborators.
Our Response to the Pandemic
When the COVID-19 pandemic began, we quickly implemented an innovative contactless delivery and collection system in March 2020. We were pleased to see that in the second quarter of that year, we recorded a 25% increase in vehicle sales, mainly due to the closure of traditional physical dealerships. Our gross revenue reached $1.12 billion, representing 13% growth between April and June 2020. During that year, we sold 244,111 vehicles and achieved an annual revenue of $5.587 billion.
Our Recent Challenges
We went through difficult times in May 2022, when we had to make the tough decision to reduce 12% of our workforce (approximately 2,500 employees), after failing to meet our growth expectations. We saw our shares fall 90% from the peak value reached in the previous 52 weeks, reflecting declining investor interest. On November 4, 2022, our shares fell another approximately 40% following below-expectations results in the third quarter.
Our Transformation in 2024
As reported by CNBC in February 2024, we spent the last 18 months completely restructuring our operations and debts amid concerns about our financial stability. As part of this major transition from accelerated growth to strategic cost management, we reduced our headcount by more than 4,000 people, successfully eliminated $1.1 billion in annual operating expenses, and launched new proprietary software called Carli, which allows us to process vehicles much more efficiently and economically.