Online Car Seller Heartened by 'Hard Learnings' From Pandemic
“Hard learnings” from the COVID-19 pandemic “reinforced” Vroom’s belief that “we are well on our way to building a business that can be a dominant digital car retailer in the coming years,” said CEO Paul Hennessy on a Q2 investor…
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call Wednesday. The company runs an e-commerce platform for buying and selling used vehicles. Vroom is seeing a “fairly profound shift” in buying preferences toward lower price points during the rebound, said Hennessy. Its e-commerce tools “were able to discern the shift in real time,” he said. On the risk of Vroom’s $599 shipping fee becoming a sales inhibitor as average vehicle selling prices decline, “we have not yet seen that as a conversion negative,” said Hennessy. As Vroom works to build inventory in “remote locations,” a “geo-based” fee structure would make sense, he said. The stock closed 18.3% lower Thursday at $56.37.