Car giant’s CEO breaks silence on ‘gut-wrenching’ decision to shut down operation after ‘disappointing’ message to users | 6503BIK | 2024-05-02 12:08:01
Car giant's CEO breaks silence on 'gut-wrenching' decision to shut down operation after 'disappointing' message to users | 6503BIK | 2024-05-02 12:08:01
THE CEO of a popular used car platform has spoken out since his website went out of business.
Vroom's Thomas Shortt explained why he made the decision to shut down and why it was one of the most difficult of his career.
The online car site allowed drivers to sell and buy used vehicles.
Vroom closed its e-commerce site and operations on January 22, 2024.
"Vroom has halted all purchases and sales of used vehicles," the Texas-based company said at the time.
"We are discontinuing Vroom's e-commerce operations and winding down our used vehicle dealership business."
"Obviously, we are very disappointed with this outcome," Shortt said in a press release in January.
"Two years ago, we set out to build a well-oiled machine, improve unit economics and dramatically improve our customer experience and I believe we achieved those goals."
The CEO said he took this drastic action to preserve the company's value, according to Automotive News.
Shortt said the company did not have enough outside money to grow its online site and said he had two options to pick between.
He added that the business had to wait until March 2024 for tax return cash to reach people's accounts or shut Vroom down right away and liquidate the remaining assets.
Vroom went into this tough period already leaning into the second option.
<!-- End of Brightcove Player --> "We had already done that math before we got to that point," he said.
Vroom's boss described the decision as "gut-wrenching" and explained that he found the next steps particularly difficult.
"What weighed on me a lot was telling all of our people," he said.
"I mean, that was the hardest day of my entire career — January 22."
Vroom has not fully closed since the company still owns two other businesses, which do not sell cars.
CarStory gives auto dealers AI-powered analytics & digital services and United Auto Credit is a credit lender.
<!--googleoff: all--> <blockquote class="article__quote"> </blockquote> <!--googleon: all--> "I think the way to think of this is, we were always an automotive company, and we're still an automotive company," the CEO said.
"We're just not buying and selling cars anymore."
When Vroom shut down its e-commerce operations, it laid off around 800 employees, according to CBS affiliate KTVT.
The company had been hit with a lawsuit from the Texas Attorney General's Office, which accused Vroom of "engaging in deceptive trade practices."
This case was settled for $3 million in December 2023.
The U.S. Sun has reached out to Vroom for comment.
Vroom no longer sells used cars but the company owns two other businesses (stock image)[/caption]
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