Carvana Marks Second Anniversary of ADESA Acquisition with New Integration and Performance Milestones
May 09 2024 - 9:00AM
Business Wire
ADESA Sets Post-Acquisition Volume and
Profitability Records in Q1; Rolls Out Digital Auction Platform
with Enhanced Tools for Wholesale Buyers and Sellers
Integration Drives Faster, More Profitable
Retail and Wholesale Business for Carvana
First Two ADESA Sites Transition to Carvana
Inspection and Reconditioning Centers with Digital Auction
Offerings
Carvana (NYSE: CVNA), an industry pioneer for buying and selling
used cars online, celebrates the two-year anniversary of its
acquisition of ADESA by sharing key integration milestones that
demonstrate the potential of the combination for both businesses
and their wholesale and retail customers.
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“In our first two years, ADESA and Carvana have not only
combined our organizations and footprints, but also integrated key
operational workflows and technology systems in ways that will
power differentiated financial, customer experience, and
scalability outcomes for both businesses in the years to come,”
said Ernie Garcia, Founder and Chief Executive Officer of Carvana.
“We are proud of the way the team has come together to drive rapid
progress in such a difficult environment and see the encouraging
early results of this collaboration as just the beginning of what
we can achieve together.”
Key Integration Milestones
- Delivering record post-acquisition volume and profitability at
ADESA, including more than 240k auction units in Q1 (+25% since
first full quarter after acquisition).
- With record volume, driving larger selection for wholesale
auction buyers and a larger buyer base and more liquidity for
auction sellers.
- Developing and launching proprietary digital auction platform,
ADESA Clear, to support wholesale auction buyers and sellers with
integrated, value-added tools.
- Consolidating over 55 overlapping market facilities for
annualized rent and facilities expense savings of over $30M.
- Routing Carvana wholesale volume directly to ADESA, reducing
Carvana’s wholesale inbound miles by more than 60% since Q1
2022.
- Activating Carvana last mile logistics at 30 ADESA locations,
and middle mile logistics at nine ADESA locations, providing
Carvana customers access to faster fulfillment.
Additionally, in April, ADESA Buffalo in New York began
operating as a Carvana Inspection and Reconditioning Center (IRC),
running reconditioning processes using Carvana’s proprietary CARLI
software while continuing to support wholesale auction customers
via digital auction. Buffalo represents the first full ADESA site
transition and demonstrates the power of the 56-site ADESA network
in anchoring not only a robust wholesale auction business but also
a growing Carvana retail business.
Carvana has also begun the process of converting ADESA Portland
in Oregon into a Carvana IRC, unlocking additional reconditioning
capacity in the Pacific Northwest, while continuing to support
auction customers digitally. Beyond ADESA Portland, Carvana has not
shared plans for further site transitions but will continue to
evaluate its network relative to the needs and opportunities of the
business overall.
The company sees significant potential for additional
efficiency, customer experience, and scale gains for the wholesale
and retail businesses by continuing to integrate Carvana and ADESA
operations and technology in the years to come.
About Carvana
Carvana’s mission is to change the way people buy and sell cars.
Over the past decade, Carvana has revolutionized automotive retail
and delighted millions of customers with an offering that is fun,
fast, and fair. With Carvana, customers can choose from tens of
thousands of vehicles, get financing, trade-in, and complete a
purchase entirely online with the convenience of home delivery or
local pick up in over 300 U.S. markets. Carvana’s vertically
integrated platform is powered by its passionate team, unique
national infrastructure, and purpose-built technology. Carvana is a
Fortune 500 company and is proud to be recognized by Forbes as one
of America’s Best Employers.
For more information, please visit www.carvana.com.
About ADESA
ADESA is a leader in the wholesale auto auction industry,
serving customers both online and at its 56 locations nationwide.
Handling every aspect of the used vehicle lifecycle, ADESA offers
solutions that enable its OEM, financial institution, fleet and
dealer customers to maximize ROI. ADESA is the second largest used
vehicle physical auction business in the U.S. and is owned by
Carvana (NYSE: CVNA), the industry pioneer for buying and selling
used vehicles online. Learn more about ADESA here.
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MEDIA CONTACT: Carvana Communications
press@carvana.com
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