What happened to Beepi?

TechCrunch has learned and confirmed that the startup is shutting down its operations outside of California, laying off 180 staff, and merging its remaining business with Fair.com, a new venture co-founded by several car industry veterans that has yet to launch. The reduced size will leave Beepi with 80 employees.

Is Beepi still in business?

Yet more developments for Beepi, the used car marketplace that had raised $150 million but then went bust: The company has completely shut down and has been sold off in parts to repay creditors.

Who bought Beepi?

Beepi Inc., an online used-vehicle marketplace, has merged with Fair.com, an upcoming mobile car-buying platform founded by former TrueCar CEO Scott Painter and two other industry veterans. The merger, first reported by TechCrunch on Wednesday and confirmed by two sources to Automotive News, cuts the Los Altos, Calif.

Why did Beepi fail?

Why did Beepi fail and shut down? It went out of cash to operate and tried to sell itself to two potential buyers, but the potential sales were not successful and Beepi had to close operation. The company had an incredibly high burn rate, spending about $7 million per month.

How did Beepi work to sell used cars?

Beepi is a textbook case of a startup with a good idea — a marketplace for people to sell and buy used cars, which would be vetted, processed and delivered to the new owner by Beepi, bypassing the costly overhead and commission structure of car dealerships. And there was some solid execution — strong customer service was a big selling point.

What’s the difference between Beepi and Vroom used car marketplace?

The company would take care of inspecting, processing and eventually delivering the cars to the customers themselves. Vroom, a similar business to Beepi, requires only photos before cars are listed, while Beepi sent an inspector for on the spot inspection.

How much money did Beepi make a month?

One ex-employee said Beepi was burning through around $7 million a month when it had its peak of 300 employees (before laying off 200 in December as part of its bid to sell to Fair.com). A large part of burn was going to “grossly high salaries” and overtime.

How is Beepi a good example of a good idea?

Beepi is a textbook case of a startup with a good idea — a marketplace for people to sell and buy used cars, which would be vetted, processed and delivered to the new owner by Beepi, bypassing the costly overhead and commission structure of car dealerships.

https://www.youtube.com/c/Beepi