CarSpring

The business operated by connecting private sellers with potential buyers through its online platform, initially launching in London. Its model was to serve as a 'matchmaker' or 'car concierge' rather than a traditional dealership, guiding customers through the entire process online. CarSpring's revenue was generated by taking a fixed fee of 5-10% based on the car's value upon a successful sale. The company differentiated itself by not only facilitating the transaction but also by holding its own inventory, a practice that set it apart from some other online car dealers at the time. To build consumer trust in online car purchasing, a significant hurdle in the industry, CarSpring implemented several key features. Every vehicle listed underwent a meticulous, multi-stage inspection by a qualified mechanic. For buyers, the service included home delivery, a 14-day test drive with a refund guarantee, a complimentary six-month warranty, and fixed, no-haggle pricing. For sellers, CarSpring offered a free inspection, valuation, and listing, with a promise to purchase the car themselves if it did not sell within 30 days. The company also arranged financing for buyers through a partnership with the broker Zuto.

CarSpring showed early promise, securing a $3 million funding round shortly after its launch and a subsequent £5 million Series B round in August 2017, with investors including Rocket Internet and Channel 4's Commercial Growth Fund. However, by late 2017, signs of trouble emerged. A planned €5 million financing round reportedly fell through amid strategic disagreements between the founders and investors. Public records indicated that the founders had resigned, and the company's website stopped listing vehicles for sale. Ultimately, after a loss of investment, the UK site ceased operations.