CZOO - Cazoo is now live as an online marketplace

2024-04-24 10:47:40 ET

Cazoo Group Ltd (NYSE: CZOO) opened about 30% up today after going live as a marketplace.

Cazoo to go up against CarGurus and Auto Trader

There are a total of about 12,000 cars listed on the platform as of Wednesday.

The company based out of London, United Kingdom had first announced plans of quitting as a used car retailer and going up against the likes of CarGurus and Auto Trader in the online classified business in March.

Car dealers in the U.K. can now use as a platform to “showcase their cars to the one million monthly visitors we attract”.

Despite the sharp surge this morning, Cazoo stock is down about 30% versus its year-to-date high in the first week of April.

Online classified is a big opportunity for Cazoo stock

Cazoo Group Ltd reiterated its commitment this morning to delivering a seamless experience as an online classified to customers looking for a car to buy. Its statement also reads:

By leveraging our brand and leading technology platform, our aim is to boost the fragmented used car market by bringing fresh opportunities to the 13,000 existing car dealers.

Used car market of the United Kingdom is a remarkable opportunity for considering it about seven million transactions worth some £100 billion per year.

Wall Street currently has a consensus “hold” rating on Cazoo shares that do not pay a dividend at writing.

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