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eBay has announced its acquisition of Caramel, a startup that streamlines the final stages of car transactions, including verification, financing, paperwork, ownership transfer, insurance, and more. The goal of this acquisition is to simplify the online car sales process, minimizing risks and complexities to create a more seamless experience for buyers and sellers alike.
As eBay navigates the fast-changing world of e-commerce, this acquisition fits seamlessly into its larger strategy to stay ahead in the competition. For instance, last year, eBay removed seller fees in the U.K. to tackle the rise of new marketplace competitors.
How can Caramel help eBay?
With Amazon’s recent entry into the online car sales market through Amazon Autos in partnership with Hyundai, eBay is bolstering its position as a trusted platform for used car transactions. The acquisition of Caramel, a startup that streamlines the final steps of car sales, including verification, financing, and paperwork, further strengthens eBay’s efforts.
Amazon has recently made its move into the online car sales arena with Amazon Autos, collaborating with Hyundai. In response, eBay is strengthening its reputation as a reliable platform for used car transactions. eBay’s acquisition of Caramel, a startup that simplifies the final stages of car sales such as verification, financing, and paperwork, enhances its ongoing initiatives.
Founded out of Los Angeles in 2021, Caramel formally launched last year with approximately $19 million in funding from backers including FJ Labs, Hearst Ventures, Zeev Ventures, and Primera Capital.
Caramel can effectively finalize sales that begin through independent dealerships or platforms like eBay. During the checkout process, Caramel serves as a choice to confirm individuals’ identities, manage title transfers and registrations, and facilitate fund transfers. Customers can select financing options and coordinate the delivery of their vehicles.
eBay provides various guidance and services to facilitate online car sales, including escrow for fund management. By integrating Caramel into its operations, the platform can streamline the process and handle a significant portion of the often-stressful post-sale administration.
Chris Prill, General Manager at eBay Motors, emphasized that the acquisition is primarily focused on “creating trust” in the vehicle buying process, ensuring both buyers and sellers are protected from scams. Although the financial terms of the acquisition have not been disclosed, eBay anticipates the deal will be completed by the first quarter of 2025.
