Vroom To Buy AI-Powered Analytics And Digital Services Firm CarStory

Vroom said on Tuesday (Dec. 15) that it has entered into a definitive deal to buy artificial intelligence (AI)-fueled analytics and digital services company CarStory via the purchase of Vast Holdings, Inc., according to an announcement.

“As car buyers and sellers across the country increasingly turn to eCommerce solutions, CarStory will strengthen and extend the reach of our digital retailing platform, and together we will accelerate the transformation of the massive used auto industry,” Vroom CEO Paul Hennessy said in the announcement.

Vroom will pay a roughly $120 million aggregate purchase price, subject to adjustment, consisting of roughly 60 percent in cash and 40 percent in shares of Vroom’s common stock, according to the announcement.

The ultimate proportion of cash to stock could change and will be set at closing, which is forecasted to happen in January of next year “subject to customary closing conditions.”

Hennessy previously told PYMNTS that car sales are going digital in the pandemic’s wake, as consumers come to the realization that buying vehicles doesn’t necessitate going to multiple dealerships to locate the right deal on the right model.

The executive said that platforms like Vroom make it possible to browse thousands of cars throughout the country, find financing and have a vehicle delivered to one’s driveway – all without leaving the house.

“It’s going to be a real challenge for traditional dealerships that run brick-and-mortar sites very well to suddenly become eCommerce companies,” noted Hennessy. “And I would suggest that there’s a big difference between having a website and being an eCommerce company, and between delivering a car in your neighborhood and having a nationwide logistics network.”

At least some auto manufacturers – such as PSA (that owns Peugeot) and Volkswagen – are embracing new models that are taking the auto purchasing process down roads not traveled in the past. In one case, PSA is putting more emphasis on eCommerce sales, with a reported goal of delivering 100,000 autos to consumers, effectively taking the showroom middleman out of the picture.