Last year, the UK used car market generated 7.9M transactions with London coming in sixth position with 160K sales, just behind South West (171K) and ahead of Yorkshire region (153K). On top of that, the demand in alternatively fuelled vehicles rose by 23% and petrol and diesel car sales remained stable. At a time when the government plans to stop selling new polluting cars by 2035 as part of its nationwide initiative to reduce carbon emissions, there is clearly still opportunities.
Founded by Alex Chesterman, Cazoo, the startup that sells used cars online raised a £100M investment by DMG Ventures, General Catalyst, CNP, Mubadala Capital, Octopus Ventures, Eight Roads Ventures and Stride.VC is transforming the way people buy cars in the UK.
“It’s clear that UK consumers are ready to buy cars online in a convenient, hassle-free way. Cars are an important form of transport for many in our society, whether conducting deliveries or getting to essential jobs and we want to ensure that those who need one can continue to get one. This new round of funding is a strong signal from investors of the scale of the opportunity. Our mission is to deliver the best experience for car buyers across the UK by delivering better selection, value, convenience and quality.” – Alex Chesterman, Founder & CEO of Cazoo
Since its launch in 2019, the company has raised over £180M which is a remarkable milestone for any startup in its first year of operation. Apparently, UK consumers are as keen on buying cars online as buying any other product. To date, Cazoo has sold thousands of cars through its e-commerce platform, delivering cars door-to-door to customers across the UK with a total revenue of £20M generated in its first 3 months.
Before selling and delivering them in two hours, Cazoo carefully refurbishes and reconditions all its cars.
“We are very excited to continue to support Alex and the team at Cazoo. The pace of what they’ve achieved and the level of adoption they’ve seen in the first few months since launch is remarkable. With almost 8 million used car transactions a year in the UK, there is a clear opportunity to provide a more convenient way to buy a car and shift part of the market online.” – Manuel Lopo de Carvalho, DMG Ventures