Cazoo, one of Europe’s leading online car retailers, announced on Wednesday (Dec. 1) that it has launched its used car marketplace in both France and Germany, after making its first step toward European expansion in February with the purchase of Germany’s leading car subscription service, Cluno.
According to a press release, the U.K.-based firm already has “hundreds of cars” available in the two European countries, all of which come with a 12-month warranty. As an added perk, buyers will benefit from free vehicle delivery directly to their doors, backed by a seven-day money-back guarantee.
“We are very excited to have launched in both France and Germany today. We have reimagined car buying to make it simple and convenient whilst adding transparency and quality to give consumers total peace of mind when buying their next car,” Alex Chesterman, founder and CEO of Cazoo, said in a statement.
Learn more: Acquisitions Fuel Growth Across Europe’s Used Vehicle Market
The British retailer added that Wednesday’s launch was just the beginning of a wider expansion plan into other European countries in the coming months, with a goal to grow its fleet to thousands of cars. The company also intends to add new features to its Europe proposition, like buying cars directly from consumers, car financing and all-inclusive monthly car subscriptions.
The company has also made moves to cement its leadership position in the local U.K. market, embarking on a series of acquisitions this year after the purchase of U.K.-based car subscription service Drover in December 2020.
Related news: Car Retailer Cazoo Acquires SMH Fleet Solutions
In September, the firm acquired U.K.-based data insights platforms Cazana and SMH Fleet Solutions (SMH), one of the U.K.’s leading vehicle preparation, logistics and storage businesses. Cazoo then expanded its retail offering to include commercial vehicles, acquiring Bristol-based online van retailer Van365, a leading independent online commercial vehicle retailer in the U.K.
Related news: Cazoo Expands to Commercial Vehicles With Vans365 Acquisition
Founded in 2018, the used car marketplace is one of the fastest-growing businesses in Europe, selling over 45,000 cars in the U.K. since its launch.
Read more: UK Online Car Retailer Cazoo Projects $1B in Revenue by the End of 2021
In September, the company announced record performance for its first-half 2021 financial results driven by the pandemic, with over 20,000 car purchases and a 521% year-on-year increase in revenue to hit £248 million (the equivalent of $335.6 million).
Also see: Cazoo’s Public Markets Debut Echoes the Revving Engines of Car eCommerce
The used car website raised $800 million at a valuation of about £4.5 billion ($6 billion) when it went public in August this year, grabbing the title of the biggest listing of a U.K. company on the New York Stock Exchange to date.
Booming Used Car Market
Competition in the used car space continues to intensify as the pandemic continues to fuel a surge in online car sales and consumers embrace the convenience of buying and selling used cars online.
Read also: Pandemic Revs Up Digital Car Sales For Online Platforms
In October, Constellation Automotive Group acquired Amsterdam-headquartered CarNext, a deal that it said will create Europe’s largest digital used car marketplace with over 2.5 million in annual cars sales.
The company said the addition of CarNext will expand Constellation’s offering across seven major European countries, allowing the group to trade a combined 2.7 million-plus cars through its business-to-consumer (B2C), business-to-business (B2B) and consumer-to-business (C2B) marketplaces. Earlier this year in May, the group raised over £1 billion to expand its business, receiving funds from top investors including Adia and Soros Fund Management.
Another player, Motorway, recently announced that it had raised $190 million in new funding at a $1 billion valuation, giving the U.K. its latest unicorn. Founded in 2017, the secondhand car marketplace, which uses an auction system to match car retailers with private sellers, sold £306 million worth of used cars in the third quarter of 2021, representing a 300% increase compared to the same period last year.
Read more: Sequoia Could Put $7.2B Into Auto1 With IPO Approaching
Also see: Auto1 Online Car Marketplace Plans to Go Public
But U.K. companies aren’t the only ones dominating the European used car space. Berlin-based Auto1 is one of the region’s biggest digital automotive platforms, serving customers in over 30 countries through its merchant (AUTO1.com) and retail (Autohero) brands.
Founded in 2012, the SoftBank-backed firm generated €2.83 billion ($3.2 million) in revenue in 2020; earlier this year, it raised $2.2 billion in an initial public offering (IPO).
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