Motors Takes The Keys To Cazoo 

Motors, a privately-owned used automobile search platform, has right now introduced it has purchased Cazoo, the used automobile unicorn that went into administration in Could, for an undisclosed sum.

Cazoo, based by Zoopla entrepreneur Alex Chesterman, instantly made a reputation for itself when it launched in 2018. It grew to become the quickest UK firm to realize unicorn standing, and featured twice in our checklist of the prime 100 UK startups.

However after numerous monetary challenges, and a tough trade panorama, the model went bust final month, and was pressured to put off tons of of workers members.

In Could, Cazoo mentioned in a press release that it had been struggling to discover a purchaser. Motors has now confirmed it has acquired Cazoo, and plans to show the model right into a mobile-first market.

What’s Motors?

CarDealer first reported in early Could that Motors was in talks to amass the Cazoo model, which was beforehand valued at over £5m, for a cut-price deal.

Motors is a web based platform for used automobiles. It started as a client web site, Motors.co.uk, and was purchased by personal fairness corporations 03 Industries and Novum Capital in 2021.

In November 2023, Motors.co.uk rebranded as Motors. At this time, it gives automobile sellers with entry to multisite promoting for used automobiles. All of that is powered by a joined-up web site community, that includes companions eBay and Gumtree, and, quickly, Cazoo.

Motors Chief Government Barry Decide advised CarDealer journal, “This acquisition presents an thrilling alternative for sellers to faucet into Cazoo’s consciousness and site visitors as a part of the Motors community.

“All supplier companions which are dwell on our Motors MultiSite packages will robotically profit from publicity on Cazoo, freed from cost.”

Cazoo goes cellular

One main trigger for Cazoo’s monetary troubles was the bills it incurred by its offline operations. Cazoo had bought costly leaseholds for its 10 ‘buyer care centres’, situated throughout the UK, together with a serious £1 million showroom in Wembley, central London.

Earlier this yr, Cazoo introduced plans to lease the websites and transition to a market enterprise mannequin in an effort to chop down overheads.

In response to CarDealer, Motors will lean into the technique by launching a brand new Cazoo app within the subsequent few weeks. It can then launch a brand new web site with over 250,000 used automobile listings.

New street for Cazoo

The sale marks the top in a collection of collisions for Cazoo. Following a lack of £704m in 2022, and a big £544m deficit in 2021, the startup halted gross sales at first of this yr and commenced to dump its stock to cut back money burn.

Traders didn’t reply effectively to the motion. In April, Paul Whitehead, who had taken over after Chesterman’s exit final January, stepped down from his function as CEO.

One month later, Cazoo warned traders it might go bust if it didn’t urgently elevate capital. This worst-case situation finally grew to become actuality.

Final week, Cazoo Group revealed that the board had voted unanimously to wind up the corporate and appoint voluntary liquidators.

Decide is now optimistic that Motors can flip issues round. He mentioned, “Regardless of its challenges as a enterprise, Cazoo has undoubtedly change into a family title with automobile patrons.

“Now we have the experience and stock to right away set up the brand new Cazoo web site as a contemporary market for used automobiles.”