Ex-Google employees raise $24 million for Shift, the Uber for used cars

Robert Karbaum
Even in the Internet age, selling your car is a hassle. You have research what it's possibly worth, post pictures and then schedule meetings with strangers for test drives and haggling. Shift, a Silicon Valley startup that announced Tuesday it raised $23.8 million in funding, wants to change all that. Full Article Here: http://mashable.com/2014/11/18/shift/ So, even for a futurist like me I find this a little hard to swallow. Either the cost for the service will be so high that it will only attract high-end luxury models, or the cost will be too low that the company will flop. Your thoughts?
Larry Schlagheck
Yes, Robert, the revenue model is fuzzy. "Shift says its car enthusiasts are paid on customer service, not commission, to incentive them to find the right car at the best price." Huh? So the buyer is paying, or is it the seller? Its site certainly seems to cater to high-end vehicles: http://driveshift.com/sf/cars
Robert Karbaum
I just submitted a trade-in value request, and it came in below the High Black Book Value. However, they have a line that says "Plus 50% of the upside" Not entirely sure what the upside is? Anyone know how this works?
Bill Simmons
This is very similar to a local business model here in Richmond VA. CarLotz is a local start-up that is a couple of years old now that caters to the "for sale by owner" crowd. They have been fairly successful as they sell as many cars as some franchised dealers monthly. Shift does not list the sellers fees on the website so hard to compare. Carlotz charges $199 to merchandise the car and then $699 once the vehicle sells. http://www.carlotz.com/seller-faqs/
Robert Karbaum
So a total of $998?
Bill Simmons
Yes, that's the total that the customer pays to have them sell their car. They have revenue also from the buyer in the case of F&I products, extended services plans and the like. The website currently list 305 vehicles for sale, that they do not have a dime invested in!

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