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Shift Technologies

From Wikipedia, the free encyclopedia
Shift Technologies, Inc.
Company typePublic
OTC Pink: SFTGQ (since 2023)
Nasdaq: SFT (2020-23)
IndustryE-commerce, Automotive industry, transportation industry
Founded2014; 10 years ago (2014)
FoundersGeorge Arison, Minnie Ingersoll, Christian Ohler and Morgan Knutson
HeadquartersSan Francisco California, United States
Area served
San Francisco Bay Area and Greater Los Angeles, California

Shift Technologies, Inc. was an American company that sold used vehicles online and also maintained a consignment-based online marketplace for buying and selling used cars.[1] Founded in 2014, Shift was based in San Francisco's Mission District.[2] As of October 2022, the company offered its services in the San Francisco Bay Area, Greater Los Angeles, and Portland, OR.[3][4][5] On October 6, 2023, Shift Technologies announced its intentions to file for Chapter 11 bankruptcy. As of that date, its final two locations in Oakland and Pomona, California, and its website are no longer in operation.

History

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Shift was founded in 2013 by: George Arison, Toby Russell, Minnie Ingersoll, Christian Ohler, Joel Washington and Morgan Knutson. The company was incorporated in 2014, and first launched in San Francisco in 2015.[6][7]

The company initially served as an intermediary that bought and sold used cars on a consignment basis.[8] The company then began acquiring cars outright and reselling them on its platform direct to buyers, removing the peer-to-peer consignment model.[9]

As a private company, Shift received funding from Lithia Motors Inc., Goldman Sachs Investment Partners (GSIP), Draper Fisher Jurvetson (DFJ), Highland Capital Partners, SV Angel, Great Oaks Venture Capital, DCM Ventures and others.[7][10] As of 2019, Shift has raised approximately $300 million, a mix of debt and equity.

In June 2020, Shift announced that it would engage in a merger with a special-purpose acquisition company (SPAC) called Insurance Acquisition Corp., then a public company listed on the Nasdaq under the ticker symbol INSU. Following the completion of the merger with Insurance Acquisition Corp. in October 2020 it was listed under the ticker SFT with a valuation of $415.9 million.[11][12]

In 2021, Shift posted $637 million in revenue, which represented over 3 times year-over year growth.[13]

In 2022, Shift announced an agreement to acquire the dealer listing marketplace assets of Fair Technologies, which will enable dealers and independent sellers to list their cars alongside Shift's own inventory. The acquisition closed on May 12, 2022.[14][15]

On August 9, 2022, Shift announced that it planned to merge with used-vehicle consignment company CarLotz.[16] The merger was completed on December 9, 2022.

On October 6, 2023, Shift Technologies announced its intentions to file for Chapter 11 bankruptcy. As of that date, its final two locations in Oakland and Pomona, California, and its website are no longer in operation.

Business model

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Shift bought and sold used cars directly to and from consumers through its ecommerce platform.[7] It facilitated financing options, inspections, Department of Motor Vehicles interactions, detailing, pricing and merchandising.[17] Once Shift acquired a car, it inspected and repaired it through its regional reconditioning centers. From there, the company listed cars on its website where consumers could purchase the car online.[7] All cars sold through Shift received a 150-point inspection prior to being sold, and included a seven-day, 200-mile return policy.[18]

References

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  1. ^ "LA tech roundup: Shift comes to LA, Zest heads to China, & more". Built in Los Angeles. Retrieved 1 July 2015.
  2. ^ "S.F. Auto Startup outgrows teen years with new Mission office". San Francisco Business Times. Retrieved 31 July 2019.
  3. ^ "Bay Area car-selling marketplace to invest $20M in Virginia expansion". Washington Business Journal. Retrieved 1 March 2016.
  4. ^ "Adios car dealers, there's a new kid in town". The San Diego Tribune. 11 December 2015. Retrieved 11 December 2015.
  5. ^ Golden, Hannah (2021-11-12). "SHIFT Hubs". Shift Blog. Retrieved 2022-04-13.
  6. ^ "Online Used Car Startup Shift Adds Another $40 Million, Snags COO in Road to IPO". TechCrunch. 10 April 2019. Retrieved 31 July 2019.
  7. ^ a b c d Chapman, Lizette (18 November 2014). "Shift Technologies Raises $23.8 Million to Build Used Car Marketplace". Wall Street Journal. WSJ. Retrieved 18 November 2014.
  8. ^ Mac, Ryan. "Shift Technologies Revs Up Online Car Marketplace With $50 Million Round From Goldman". Forbes. Retrieved 2021-04-16.
  9. ^ Lunden, Ingrid (25 January 2017). "P2P car marketplace Shift pauses DC operations, lays off 10% of staff". TechCrunch. Retrieved 2021-04-16.
  10. ^ "This Startup Drives Used Cars Right to Your Door". Bloomberg.com. Bloomberg Businessweek. September 2015. Retrieved 1 September 2015.
  11. ^ Ravera, Davide. "Shift: Underfollowed Stock With Great Growth And Valuation (NASDAQ:SFT)". SeekingAlpha. Retrieved 2021-04-16.
  12. ^ "Online used-car seller Shift's shares fall in Nasdaq debut". Reuters. 2020-10-15. Retrieved 2021-04-16.
  13. ^ Transcribing, Motley Fool (2022-03-15). "Shift Technologies, Inc. (SFT) Q4 2021 Earnings Call Transcript". The Motley Fool. Retrieved 2022-04-15.
  14. ^ "SoftBank Loses in Fair's Sale of Some Auto-Leasing Assets to Shift". Bloomberg.com. 2022-03-16. Retrieved 2022-04-15.
  15. ^ "Shift closes purchase of Fair's technology, expects to pilot dealer-listings marketplace in Q2". Auto Remarketing. 2022-05-12. Retrieved 2022-06-02.
  16. ^ "Online player Shift Technologies signals need for revised used-car strategy". Automotive News. 2022-08-16. Retrieved 2022-10-03.
  17. ^ "On-demand used car buying and selling comes to L.A." LA Times. Retrieved 26 June 2015.
  18. ^ Privateauto , 5 August 2023
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