These operational changes will also result in a reduction of workforce across the business and rationalization of Shift’s physical footprint.
Given current market dynamics, Shift is optimizing inventory mix and assortment to favor Value vehicles, which Shift defines as older than 8 years or having been driven 80,000 miles. Key aspects of the plan include focusing most sales through Shift’s most profitable online checkout channel, which allows consumers to purchase a vehicle online, sight unseen for pickup or delivery, and temporarily eliminating test drives. More information on the merger can be found in the joint press release and presentation on Shift’s investor relations website.Ĭoncurrently, Shift announced an updated business plan that is expected to allow it to reach positive unit economics in 2023 and company-wide profitability in 2024. Upon closing, the go-forward business plan is expected to be fully funded to profitability by the cash position of the combined company. The merger will bring together the best, most profitable assets from each company, consolidating Shift’s proprietary acquisition engine, best-in-class technology platform, and strong presence on the West Coast with CarLotz’s unique consignment relationships and prime retail locations in the mid-Atlantic region. Shift announced today it has entered into a definitive agreement to merge with CarLotz (Nasdaq: LOTZ), a leading used vehicle consignment business, in a stock-for-stock merger. (Nasdaq: SFT), a leading end-to-end ecommerce platform for buying and selling used cars, announced today several business updates. 09, 2022 (GLOBE NEWSWIRE) - Shift Technologies, Inc.
Shift is transitioning to a new business plan focused on transacting most sales through its most profitable online checkout channel, which allows consumers to purchase a vehicle online, sight unseen, for pickup or delivery.Shift to merge with CarLotz, a leading used vehicle consignment business combined company estimated to have approximately $125 million of cash if the merger closes at the end of the year.
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