Does VROOM outsource sales?

John Finucane

I read the article on VROOM's IPO & am confused on this part:

It relies on several third parties

Vroom relies on several third-party companies to do the bulk of its job.

That include its customer-service team, which handles “the substantial majority” of inquiries, sales, purchases and financing of vehicles in Vroom’s business.

“Thus, the customer experience center is fundamental to the success of our business. As a result, the success of our business and our customer experience is partially dependent on a third party over which we have limited control,” the company said.

** Does this mean they outsource the sales part of the business? Really? Maybe I'm reading it wrong. I understand some dealers use a 3rd party BDC but most integrate that with in-house employees. 


Morgan Hardy

I thought it was similar to Carvana? How much "selling" do they really do?

Morgan Hardy

I have seen more complaints than positive on both honestly. 

John Finucane

Just interested in the business model if they outsource the customer service/sales portion of it.

Chris K Leslie

Im sure they can train an outside BDC to handle all of the process. 

Morgan Hardy

@Chris- I would think so as well. They do hire 3rd party drivers to deliver the cars to the customers. 

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