2:54 pm, February 18, 2022
Online used car retailer Carzam has said it’s targeting a revenue of £500m this year.
The company, which is a rival of Cazoo and Cinch and founded by Big Motoring World CEO Peter Waddell, says rising stock levels and high levels of consumer demand are the reasons for the punchy prediction.
Along with the £500m revenue target, Carzam is also expecting to shift 40,000 cars by the year-end.
The news comes as Car Dealer published an exclusive column by Freeserve founder Ajaz Ahmed, explaining why dealers need to take used car disruptors such as Carzam seriously.
Last year, in its first year of trading, Carzam sold around 13,000 cars and made £150m.
Kirk O’Callaghan, CEO of Carzam, said: ‘We always described 2021 as the learning phase.
‘We were testing our model and preparing to scale. The funding from our consortium of investors pushed us to the next level.
‘With supply increasing by the day, demand is the other key component. In the first six weeks of the year, we have experienced sales growth of 15 per cent week on week.
‘Convenience, choice and a seamless customer journey will be crucial to the long-term success of our model. We’re doing well on each of these fronts but constantly striving to improve.’
In November 2021, Carzam raised £112m in funding to bolster its standing in the online used car market.
It has also made a number of appointments over the past two months, including a new executive chairman, chief technology officer and chief people officer.
O’Callaghan added: ‘Carzam is a young company but we’re set to claim a significant share of the UK’s used car market this year.
‘We have built a model that bypasses supply shortages. We’re creating the infrastructure to keep pushing our growth trajectory. We have fantastic people who are excited to join us on the journey.
‘Each of these progressive steps has one aim – to improve the customer’s experience. The handover on the driveway should always be a magical moment. That will underpin our success.’
