Techcrunch is reporting that Beepi will merge with Fair, the new auto startup founded by Georg Bauer (formerly of BMW, Mercedes-Benz and Tesla), Scott Painter (TrueCar) and Fedor Artiles (Mercedes-Benz, Chrysler, Volkswagen, and Tesla).

After going through nearly $150 million in funding, peer-to-peer used-car marketplace Beepi.com is shifting gears. TechCrunch has learned and confirmed that the startup is shutting down its operations outside of California, laying off 180 staff, and merging its remaining business with Fair.com, a new venture co-founded by several car industry veterans that has yet to launch.

The need for auto retailing innovation — less than 1% of all new & used cars sales are conducted online — remains strong even as Beepi struggles to reinvent itself. Beepi’s model offered more service but too little transparency. Consumers want a transparent, online purchase they can trust far more than a flatbed truck in their driveway. Seems hard to believe putting a car on a flatbed truck 2 more times than traditional dealers would improve operational efficiency. Consumers want a transparent, online purchase comparable those they find when they buy stock, book a flight or prepay for a hotel room.

They want visibility into transaction prices, incentives and all related costs fees so they can buy with confidence. A consumer interested in buying $40,000 of GM stock can see the average share price based on the prices paid by thousands of buyers on any screen or device within reach. But if that same consumer tries to buy a $40,000 Chevrolet, it seems the best they can get is a handwritten price from a salesperson they just who claims they’re getting a great deal. Transparency combined with an efficient, online purchase experience will allow more people to buy more cars more often.

So what’s next for Beepi and Fair?

There are not many details yet of what the three plan to do with Fair, or when it will officially launch, but it’s fair to assume (sorry) that it will involve another go at the business of trading in cars with a very extended wrapper of customer service around that.

Fair’s site, as it is now, hints at a platform for people not to buy cars outright but instead move to a flexible leasing model and a car selector based on your finances. "Enjoy the freedom to drive the car you want for as long as you want," it notes. "And when you're ready, you can trade up, try something new, or just walk away."

As for car buying online? Only time will tell if one of the major first players taking a hit will have a deep impact. But this much we know, without maximum transparency car buying online will struggle to scale.

By Jim Dykstra, Founder www.vinadvisor.net (beta)
jim@vinadvisor.club

original post: http://vinadvisor.net/blog/744-beepi-collapse-underscores-car-buying-online-need-for-transparency