It facilitated financing options, inspections, Department of Motor Vehicles interactions, detailing, pricing and merchandising. Shift bought and sold used cars directly to and from consumers through its ecommerce platform. As of that date, its final two locations in Oakland and Pomona, California, and its website are no longer in operation. On October 6, 2023, Shift Technologies announced its intentions to file for Chapter 11 bankruptcy. The merger was completed on December 9, 2022. On August 9, 2022, Shift announced that it planned to merge with used-vehicle consignment company CarLotz. 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. In 2021, Shift posted $637 million in revenue, which represented over 3 times year-over year growth. in October 2020 it was listed under the ticker SFT with a valuation of $415.9 million. Following the completion of the merger with Insurance Acquisition Corp. 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. As of 2019, Shift has raised approximately $300 million, a mix of debt and equity. Īs 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. The company then began acquiring cars outright and reselling them on its platform direct to buyers, removing the peer-to-peer consignment model. The company initially served as an intermediary that bought and sold used cars on a consignment basis. The company was incorporated in 2014, and first launched in San Francisco in 2015. Shift was founded in 2013 by: George Arison, Toby Russell, Minnie Ingersoll, Christian Ohler, Joel Washington and Morgan Knutson. ![]() ![]() As of October 2022, the company offered its services in the San Francisco Bay Area, Greater Los Angeles, and Portland, OR. Founded in 2014, Shift is based in San Francisco's Mission District. is an American company that sold used vehicles online and also maintained a consignment-based online marketplace for buying and selling used cars. Given these factors, Baker explained that he could no longer recommend the stock as a “Buy”, downgrading to “Neutral” and reducing his price target to $1.50 from a prior $2.50.San Francisco Bay Area and Greater Los Angeles, California “For their $100M purchase price, SFT is buying just over $100M in EBITDA losses in 2023 according to the consensus forecast,” Baker wrote on Wednesday. Yet, the deal was noted as quite expensive considering the loss-making history of CarLotz itself. “SFT needed to raise capital to shore up their balance sheet, and the additional $75M from this deal should give them enough liquidity to see through to their breakeven strategy.” “The deal does have its merits, most important of which is the $75M in cash that Shift picks up from the combination with CarLotz ( LOTZ),” he noted. That is not to mention the CEO transition that adds another layer of complexity. ![]() While Baker applauded the acquisition on the basis of its potential to shore up the balance sheet, he noted that it is also “potentially dilutive and risky.” As the used car space deteriorates and the company guides down, the integration risk only adds another potential problem. Adding to the spate of news, the company also announced a CEO transition and the acquisition of CarLotz ( LOTZ ). The online auto retailer offered a mixed earnings result on Tuesday evening wherein losses were lighter than anticipated, but units missed consensus and revenue forecasts were trimmed. Davidson analyst Michael Baker to downgrade the stock on Wednesday. ![]() After a noisy earnings day for Shift Technologies ( NASDAQ: SFT) motivated D.A.
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