To provide a used automotive purchasing and selling experience to new geographies, CarLotz, Inc. unveiled intentions to launch a countrywide hub network. The news comes on the heels of its announcement that it would become a public company through a merger with a special purpose acquisition company (SPAC), according to a Monday (Jan. 11) announcement.
“Opening hubs in new markets presents a tremendous opportunity for CarLotz to gain ground in large and attractive regions of the country where the Company’s business model can make a real difference for car buyers and sellers,” CarLotz CEO and Co-Founder Michael Bor said in the announcement. He also noted that the company intends to open three to four hub locations each quarter during the year.
The company will grow into the Seattle–Lynnwood, Washington market and will also bring a new hub to the Orlando–Merritt Island, Florida market by the beginning of February as the first part of its “nationwide expansion” per the announcement. After the openings, it intends to roll out hubs in 2021 in Texas, Tennessee, Nevada, Massachusetts, Georgia, Colorado, California and Arizona.
“New markets allow CarLotz to increase its customer base and addressable market, expand capacity and reduce shipping costs, which ultimately drives gross profit expansion,” Bor said.
On Jan. 8, CarLotz, Inc. said it had received the necessary green light from its shareholders, including the green light from a supermajority of its minority shareholders, to conclude a potential combination with Acamar Partners Acquisition Corp.
CarLotz will become a public company listed on the Nasdaq with the “LOTZ” ticker symbol after the potential merger is finalized. Other stipulations still have to be met before such a possible deal closes, however.
Acamar Partners is scheduled to have a shareholders meeting to green light the possible deal on Jan. 20, while the transaction is expected to close on Jan. 22.
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