CARVANA CO.

Same Day Delivery

Buying a car is a complex process. In most dealership transactions, this complexity is managed through many hours spent in person. Since the beginning, we have reduced complexity for car buyers and sellers with technology – combining an intuitive ecommerce website and seamless fulfillment experience. This has always been convenient and saved customers the time they would have otherwise spent waiting at a dealership, but it came with the tradeoff of waiting for vehicle delivery. Same-day delivery changes this.

We are only able to offer same-day delivery because of our vertically-integrated operations and technology. We have full control over the transaction and underwriting process, full control of how that ties to vehicle staging and fulfillment, and full control of the policies and staffing driving what options are available to customers.

We are currently using Phoenix as a test market to expand and refine our same day delivery capabilities. As a result, ~40% of customers in Phoenix now get same day or next day delivery vs. ~10% in other markets. Phoenix customers now have about 2,500 cars available to be delivered the same day. In the near term, we will continue to test and optimize this capability in Phoenix and will then look to roll out these enhancements to additional markets over time.

Having thousands of vehicles that can be purchased in minutes and delivered in hours is a highly differentiated and desirable customer offering that is extremely difficult to replicate.