Companies‎ > ‎US Research‎ > ‎

Carvana (Nasdaq: CVNA) | Company Profile, History, Competitors


Carvana (NASDAQ: CVNA) operates a used car eCommerce website. The company was founded in 2012 and headquartered in Phoenix, AZ.

Carvana offers the customers the ability to buy and finance a used car anytime and anywhere, with the transaction taking as little as 10 minutes and delivery of the car possible by next day. Carvana has a national pool of more than 7,000 used cars, backed by a 7-day return policy.

Business Overview

Carvana was founded in 2012 as a subsidiary of DriveTime. it spun out in 2014 following the launch of its first two markets in Atlanta and Nashville. By 2017, Carvana launched in 23 markets.

Carvana sources the majority of its inventory from wholesale auction providers. Industry wide, auction sales represent 50% of total wholesale unit volumes. The rest of its inventory is sourced from local dealerships, rental car companies and trade-ins. Carvana uses a team of buyers who can source its auction inventory.

Carvana's market strategy is a hub-and-spoke model. Carvana focuses on densely populated regions and specific transportation corridors. Once a vehicle is reconditioned and listed for sale on Carvana's website, it stays at the facility until sold (typically 30 days).

Carvana's ability to provide a personal and enjoyable experience to customers is a key advantage. Carvana used social media, inventory listings, finance leads and TV campaigns to attract in-market buyers.

For vehicles that have expired warranties, Carvana also offers customers extended warranties called VSC contracts where Carvana acts in an agency capacity and receives a fee.

Sales & Marketing

Carvana uses direct marketing through paid advertising online, direct mail and radio/television advertising.

Carvana has has a handful of six-story vending machines, which are used to bring customer awareness to the Carvana platform.


Carvana's main competitor is CarMax, which is the largest used car retailer in the United States, selling 650,000 used cars in 2016. Number two is AutoNation and Number three is Penske. 

Even through CarMax is the Number 1 online used car retailer, it only has 2% share of the US national market. The used car market remains very fragmented and could potentially offer room for CarMax to grow and continue to capture share.

CarMax also faces online competition from Vroom, Shift and eBay Motors.


Ernie Garcia, III (CEO): Ernie is the CEO and co-founder since 2012. Prior, he held various positions at DriveTime including corporate finance and treasurer.

Mark Jenkins (CFO): Mark has been CFO since 2014. Before, he was a professor in the finance department at Wharton School at University of Pennsylvania. He also worked at the Brattle Group, an economic research group.

Ben Huston (COO): Ben has been COO and co-founder. Before, he founded Looterang, a deals website. He was also a lawyer at Latham and Watkins.

Ryan Keeton (CBO): Mark has been Chief Brand Officer and co-founder. Prior, he worked at the Montero Group, a strategy consulting firm.


 $ USD in millions     2014  2015  2016  2017
 Revenues $42  $130  $365  $859 
 Gross Profit ($0) $1 $19 $68 
 Operating Profit ($35)($90)($155)($168)
 Net Income ($37)($93)($63)($31)
 EPS ($0.42)($0.68)($4.19)($2.20)
Carvana, Inc.
  Ticker     NASDAQ: CVNA
  Industry Retail
  Founded 2012
  Headquarters Phoenix, AZ
$859mm (2017)
  Employees 1,864 (2017)