Why did Beepi fail?

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?

Beepi was a peer-to-peer marketplace. Instead of buying the car outright, Beepi sent one of its 100+ inspectors to the seller and run a 240-point two-hour evaluation. Once it’s bought, the money would be transferred to the seller and another Beepi employee picked up the car and delivered it to the buyer.

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.

When was Beepi founded?

Beepi was founded in 2013 by Ale Resnik (“Resnik”) and Owen Savir (“Savir”). The idea behind Beepi was born out of an unpleasant experience Resnik had had when buying a used car as a student at MIT.

Why did Beepi shut down?

For whatever innovation it promised to bring to car sales, the company ran into the familiar, traditional startup problem of running out of money, and after aborted attempts to sell Beepi to Fair.com, another startup used-car marketplace, and DGDG, a Bay Area dealer group, the company shuttered in December 2016.

Is Beepi 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. And there was some solid execution — strong customer service was a big selling point.

How does Beepi take care of cars?

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 did Beepi burn through?

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.