Online used car retailer Shift plans merger with CarLotz to boost profitability

Used car eCommerce platform Shift is merging with consignment firm CarLotz, and the two companies promise to deliver a better way to buy and sell used cars. With Shift, customers can shop for cars online and have them delivered to their doorstep. CarLotz will handle the consignment and delivery of the vehicles, and Shift will take a cut of the sale. The two companies hope their combined platform will make buying and selling used cars effortless and convenient for everyone involved.

Shift CEO George Arison will lead the combined company. “This is a natural next step in our mission to make car buying easy, fair, and fun for everyone,” Arison said in a statement. “By joining forces with Carlotz, we will be able to provide an even more seamless and comprehensive experience for our customers.” 

CarLotz CEO Michael Bor, who will serve as President of the combined company, said the merger will create a “powerful end-to-end solution” for used car buyers and sellers. The combined companies will have a network of more than 10,000 consignment locations across the country, allowing customers to sell their cars without going through a traditional dealership. The company will also offer financing and warranty options. The merger is expected to close by the end of 2022.

This merger is the latest in a string of consolidations in the used car market. In 2020, Carvana acquired Car360, a 360-degree vehicle imagery company; earlier this year, Vroom acquired United Auto Credit Corporation, signaling the company’s entry into captive financing operations. 

Correction: A previous version of this article stated that Vroom acquired DriveTime. Ernie Garcia, II founded and currently owns DriveTime. 

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