eBay acquires Caramel to reduce the risk and complexity of online car sales

E-commerce giant eBay has Announce Plans to acquire Caramela startup that helps car buyers and sellers complete the final steps of the transaction, including verification, financing, paperwork, title transfer, insurance, and more.

Caramel Company was officially founded in Los Angeles in 2021 Fired Last year with nearly $19 million in funding, from backers including FG LaboratoriesHearst Ventures, Zeev Ventures, and Primera Capital.

Caramel can be used to supplement sales initiated through dealerships or independent markets, Including eBay. At the point of verification, Caramel is provided as an option to verify individuals’ identities, handle ownership transfers and registrations, and transfer funds. Buyers can also choose financing options and arrange delivery of the vehicle.

“trusted”

As eBay has grown over the years, it has had to evolve to remain competitive – the company last year, for example UK seller fees have been removed To face a new wave of emerging companies in the market. Amazon, eBay’s old enemy, entered the online car sales business last month with… Launch of Amazon Cars In partnership with Hyundai. While it’s all about finding new vehicles and buying them directly from the dealer, it’s not entirely unlikely that Amazon will expand its scope to cover used vehicles in the future.

Ultimately, eBay wants to ensure that it remains a preferred channel for safe and fast used car sales, at a time when consumers have more choices than ever before.

While eBay already offers some advice and services to facilitate online used car sales, e.g Guarantee to hold moneybringing Caramel’s offerings in-house will enable it to speed up the process by taking care of much of the stressful after-sales management.

Chris BrillThe eBay Motors managing director says the acquisition is about “creating trust” in the car buying process, helping buyers and sellers avoid… Tricks.

“Purchasing a car is a big moment – ​​the Caramel platform brings it all together into one simple, seamless process: verifying ownership and identity, insurance, financing – and even shipping the car to the buyer after purchase,” Chris Brill said in a statement. “With Caramel and eBay joining forces, both buyers and sellers will be able to complete vehicle transactions on eBay with greater peace of mind, and Caramel can establish itself across a myriad of platforms.”

Neither company disclosed the acquisition price, but eBay said it expects the deal to close in the first quarter of 2025.