E-commerce giant eBay has announced plans to acquire Caramel, a startup that helps car sellers and buyers complete the final stages of a transaction, including verification, financing, documentation, title transfer, insurance, and more.
As eBay has grown over the years, it has had to evolve to stay competitive. For example, the company last year eliminated sales commissions in the UK to combat a new wave of marketplace startups. Specifically in the automotive space, eBay has acquired several startups to stay ahead of the curve, including advertising and marketing technology company Cargigi and British classifieds site Motors.co.uk.
Last month, eBay's archrival Amazon also entered the online car sales business by partnering with Hyundai to launch Amazon Autos. This is aimed at finding and purchasing new cars directly from dealerships, but it's possible that Amazon could expand this to include used cars in the future.
Ultimately, eBay aims to remain the go-to channel for safe and fast used car sales, at a time when consumers have more choices than ever before.
Caramel Image Credit: Caramel
Founded in Los Angeles in 2021, Caramel officially launched last year with approximately $19 million in funding from backers including FJ Labs, Hearst Ventures, Zeev Ventures, and Primera Capital.
Caramel can be used to complete sales initiated by independent dealers or through marketplaces such as eBay. At checkout, you will be provided with Caramel as an option to verify your identity, process ownership transfers and registrations, and transfer funds. Buyers can also select financing options and arrange for vehicle delivery.
Caramel and eBay Image credit: Caramel
eBay already offers guidance and services to make selling cars online easier, such as escrow to preserve funds, but bringing Caramel in-house eliminates stressful post-sale management. By taking over most of the work, you can speed up the process.
But more than that, eBay Motors general manager Chris Prill said the acquisition is all about “creating trust” in the vehicle buying process, helping buyers and sellers avoid fraud. Ta.
Neither company disclosed the purchase price, but eBay said it expects the deal to close in the first quarter of 2025.