Shift Technologies

Shift Technologies, Inc. is an American company that maintains an online marketplace for buying and selling used cars.[1] Founded in 2014, Shift is based in San Francisco’s Mission District.[2] As of October 2022, the company offers its services in the San Francisco Bay Area, Los Angeles, and Portland, OR.[3][4][5]

Shift Technologies, Inc.
TypePublic
Nasdaq: SFT (Class A)
IndustryE-commerce, Automotive industry, transportation industry
Founded2014
FoundersGeorge Arison, Minnie Ingersoll, Christian Ohler and Morgan Knutson
HeadquartersSan Francisco California, United States
Area served
urban areas of Bay Area, CA, Los Angeles, CA, and Portland, OR
Websiteshift.com

History

Shift was founded in 2013 by: George Arison, Toby Russell, Minnie Ingersoll, Christian Ohler, Joel Washington and Morgan Knutson. The company was incorporated in 2014, and first launched in San Francisco in 2015.[6][7]

The company initially served as an intermediary that bought and sold used cars on a consignment basis.[8] The company then began acquiring cars outright and reselling them on its platform direct to buyers, removing the peer-to-peer consignment model.[9]

As a private company, Shift received funding from Lithia Motors Inc., Goldman Sachs Investment Partners (GSIP), Draper Fisher Jurvetson (DFJ), Highland Capital Partners, SV Angel, Great Oaks Venture Capital, DCM Ventures and others.[7][10] As of 2019, Shift has raised approximately $300 million, a mix of debt and equity.

In June 2020, Shift announced that it would engage in a merger with a special-purpose acquisition company (SPAC) called Insurance Acquisition Corp., then a public company listed on the Nasdaq under the ticker symbol INSU. Following the completion of the merger with Insurance Acquisition Corp. in October 2020 it was listed under the ticker SFT with a valuation of $415.9 million.[11][12]

In 2021, Shift posted $637 million in revenue, which represented over 3 times year-over year growth.[13]

In 2022, Shift announced an agreement to acquire the dealer listing marketplace assets of Fair Technologies, which will enable dealers and independent sellers to list their cars alongside Shift’s own inventory. The acquisition closed on May 12, 2022.[14][15]

On August 9th, 2022, Shift announced that it plans to merge with used-vehicle consignment company CarLotz. The merger is anticipated to be completed by the end of the year.[16]

Business model

Shift buys and sells used cars directly to and from consumers through its ecommerce platform.[7] It facilitate financing options, inspections, Department of Motor Vehicles interactions, detailing, pricing and merchandising.[17] Once Shift acquires a car, it inspects and repairs it through its regional reconditioning centers. From there, the company lists cars on its website where consumers can purchase the car online.[7] All cars sold through Shift receive a 150-point inspection prior to being sold, and include a seven-day, 200-mile return policy.

References
  1. "LA tech roundup: Shift comes to LA, Zest heads to China, & more". Built in Los Angeles. Retrieved 1 July 2015.
  2. "S.F. Auto Startup outgrows teen years with new Mission office". San Francisco Business Times. Retrieved 31 July 2019.
  3. "Bay Area car-selling marketplace to invest $20M in Virginia expansion". Washington Business Journal. Retrieved 1 March 2016.
  4. "Adios car dealers, there's a new kid in town". The San Diego Tribune. 11 December 2015. Retrieved 11 December 2015.
  5. Golden, Hannah (2021-11-12). "SHIFT Hubs". Shift Blog. Retrieved 2022-04-13.{{cite web}}: CS1 maint: url-status (link)
  6. "Online Used Car Startup Shift Adds Another $40 Million, Snags COO in Road to IPO". TechCrunch. 10 April 2019. Retrieved 31 July 2019.
  7. Chapman, Lizette (18 November 2014). "Shift Technologies Raises $23.8 Million to Build Used Car Marketplace". Wall Street Journal. WSJ. Retrieved 18 November 2014.
  8. Mac, Ryan. "Shift Technologies Revs Up Online Car Marketplace With $50 Million Round From Goldman". Forbes. Retrieved 2021-04-16.
  9. Lunden, Ingrid (25 January 2017). "P2P car marketplace Shift pauses DC operations, lays off 10% of staff". TechCrunch. Retrieved 2021-04-16.{{cite web}}: CS1 maint: url-status (link)
  10. "This Startup Drives Used Cars Right to Your Door". Bloomberg.com. Bloomberg Businessweek. September 2015. Retrieved 1 September 2015.
  11. Ravera, Davide. "Shift: Underfollowed Stock With Great Growth And Valuation (NASDAQ:SFT)". SeekingAlpha. Retrieved 2021-04-16.
  12. Reuters Staff (2020-10-15). "Online used-car seller Shift's shares fall in Nasdaq debut". Reuters. Retrieved 2021-04-16. {{cite news}}: |author= has generic name (help)
  13. Transcribing, Motley Fool (2022-03-15). "Shift Technologies, Inc. (SFT) Q4 2021 Earnings Call Transcript". The Motley Fool. Retrieved 2022-04-15.
  14. "SoftBank Loses in Fair's Sale of Some Auto-Leasing Assets to Shift". Bloomberg.com. 2022-03-16. Retrieved 2022-04-15.
  15. "Shift closes purchase of Fair's technology, expects to pilot dealer-listings marketplace in Q2". Auto Remarketing. 2022-05-12. Retrieved 2022-06-02.
  16. "Online player Shift Technologies signals need for revised used-car strategy". Automotive News. 2022-08-16. Retrieved 2022-10-03.
  17. "On-demand used car buying and selling comes to L.A." LA Times. Retrieved 26 June 2015.
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