- Founded: 2014
- Ceased Operations: 2017
- Located: Mountain View, California
- Fate: Liquidation
What did Beepi do?
Beepi was a California-based online used car marketplace that allowed individuals to buy and sell used cars through an online platform. Beepi’s business model involved inspecting, certifying, and listing used cars for sale on its website, and then delivering the purchased cars to buyers’ doorsteps.
Beepi was a peer-to-peer marketplace. Cars underwent an inspection and were listed on Beepi’s website for a fixed price with Beepi taking a 9% commission and buying unsold cars after 30 days. While buyers did not test drive the car before purchase, they had a 10-day return window after delivery and a warranty. Buyers had the option to pay Beepi in bitcoin, direct debit, financing or credit cards.
The company raised over $150 million in venture capital funding.
Who started Beepi?
Beepi was co-founded by Ale Resnik (CEO) and Owen Savir (COO).
Why did the company go out of business?
Beepi faced several challenges that led to its eventual shutdown in 2017. One of the main challenges was its high overhead costs, which included the cost of acquiring and inspecting cars, as well as the cost of providing delivery services. The company was also heavily dependent on venture capital funding, and it struggled to raise additional funds to sustain its operations.
Additionally, Beepi faced increasing competition from other online used car marketplaces, such as Carvana and Vroom, which had larger marketing budgets and were able to offer lower prices to consumers. In late 2016, Beepi was selling about 150 cars each month in California.
All these factors, along with the difficulty of operating in a highly competitive and complex industry, ultimately led to Beepi’s inability to sustain its operations, resulting in its closure in 2017.