Carvana Co. operates an e-commerce platform for buying and selling used cars in the United States. The company's vertically integrated business model covers the entire vehicle transaction lifecycle, including acquisition, inspection, reconditioning, merchandising, financing, and fulfillment. Carvana generates revenue primarily through three segments: Retail Vehicle Sales, which accounts for the majority of its revenue (approximately 70%); Wholesale Vehicle Sales, which involves selling vehicles that do not meet its retail standards or are sold through its ADESA auction business; and Other Sales and Revenues, which includes the sale of automotive finance receivables, vehicle service contracts, and other complementary products.
In 2022, Carvana expanded its physical and wholesale footprint by acquiring ADESA's U.S. physical auction business, adding dozens of locations to support vehicle reconditioning and wholesale operations. The company is well-known for its multi-story glass car vending machines located across the U.S., which serve as automated fulfillment centers for customer pick-ups. By replacing traditional dealership infrastructure with a digital-first approach, Carvana allows customers to complete the entire transaction online, including trade-ins and financing. The company competes with traditional brick-and-mortar auto dealerships, other online auto retailers, and peer-to-peer vehicle sales platforms.
