Last Thursday, Cars.com, a leading digital marketplace and solutions provider for the automotive industry, released its financial results for Q1 2021. From the beginning of January to the end of March, Cars.com reported revenue earnings of $153.3 million, up $5.2 million, or 4% year-over-year, from this time last year, when the threat of COVID-19 was at one of its highest points. To further discuss Cars.com’s Q1 results, is the CEO Alex Vetter.
In Vetter’s words, this earnings season is another quarter of consecutive growth. Cars.com has seen dealer growth on their platform, five out of the last six quarters. With the turmoil caused by the outbreak of COVID-19, car dealers have realized that not all markets are created equally.
Vetter explains, “Many of these websites run gimmicks that force dealers to cut prices or lower profits, and we’re running a level playing field that helps the dealer to compete on dimensions other than price. I think this is coming through particularly in this inventory-starved environment.”
In addition to acquiring Dealer Inspire in 2018, Cars.com has partnered with Ford Motor Company to help Ford dealers modernize their websites, become more mobile-centric, and improve their tracking and measurements.
Savvy car dealers understand how these improvements directly relate to increased conversions and incremental sales results. While some car dealers might be hesitant to work with a third-party marketplace, Vetter says the results are undeniable.
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