RumbleOn | research notes

RumbleOn: Revolutionizing the Automotive Industry with a Digital-First Approach

Introduction

RumbleOn is a disruptive e-commerce platform that is transforming the way people buy and sell used vehicles. By leveraging technology and innovation, the company aims to provide a seamless, convenient, and transparent experience for both buyers and sellers.

About RumbleOn

RumbleOn was founded in 2017 by Marshall Chesrown, a former eBay executive. The company's mission is to "make the automotive industry better for everyone." RumbleOn's innovative platform combines the convenience of online shopping with the trust and reliability of a physical dealership.

Digital-First Approach

RumbleOn's digital-first approach allows customers to browse, buy, and finance their next vehicle entirely online. Through its user-friendly website and mobile app, customers can access a vast inventory of used vehicles, compare prices, and schedule test drives.

The company also provides virtual inspections and financing options, eliminating the need for physical interactions or haggling. This digital experience streamlines the car-buying process, saving customers time and hassle.

Rigorous Inspection Process

RumbleOn prides itself on the quality of its vehicles. Each car goes through a comprehensive 150-point inspection, ensuring that it meets rigorous standards. Customers can view detailed inspection reports and receive a warranty with their purchase, providing peace of mind.

Nationwide Inventory

RumbleOn's nationwide network of warehouses and dealerships gives customers access to a vast selection of vehicles. The company offers delivery to customers' doorsteps or pickup at a convenient location.

Targeted Advertising

RumbleOn utilizes advanced data analytics to target customers with personalized advertising. By understanding customer preferences, the company can showcase vehicles that are relevant and tailored to their needs.

Financial Services

RumbleOn's financial services division provides customers with competitive financing options. The company partners with multiple lenders to offer a range of rates and terms, making it easy for customers to secure the financing they need.

Customer Service and Community

RumbleOn prioritizes customer service and has a dedicated team available to assist customers with all aspects of their purchase. The company also fosters a sense of community through online forums and social media, where customers can connect with each other and share their experiences.

Impact on the Industry

RumbleOn's digital-first approach is disrupting the traditional automotive industry. By eliminating the need for physical dealerships and providing greater transparency and convenience, the company is making it easier for customers to find and purchase the perfect vehicle.

The company's success has also attracted attention from investors. In 2020, RumbleOn raised $300 million in funding, valuing the company at over $1 billion.

Conclusion

RumbleOn is a groundbreaking e-commerce platform that is transforming the way people buy and sell used vehicles. Its digital-first approach, rigorous inspection process, nationwide inventory, and personalized advertising make it a convenient, transparent, and reliable option for customers. As the company continues to innovate and expand, it is poised to revolutionize the automotive industry further.

RumbleOn Business Model

RumbleOn is an online marketplace that connects buyers and sellers of used vehicles. The company operates on a consignment model, where it takes custody of the vehicles it sells and manages the sales process for the sellers. RumbleOn generates revenue from a variety of sources, including:

• Consignment fees: RumbleOn charges a consignment fee to sellers for each vehicle listed on its platform.
• Service fees: The company also charges service fees for a variety of services it offers, such as vehicle inspections, transportation, and financing.
• Vehicle sales commissions: RumbleOn earns a commission on the sale of each vehicle on its platform.

Advantages over Competitors

RumbleOn has several advantages over its competitors in the used vehicle market:

• Online marketplace: RumbleOn's online marketplace provides a convenient and efficient way for buyers and sellers to connect. This allows the company to reach a wider audience than traditional dealerships.
• Consignment model: By taking custody of the vehicles it sells, RumbleOn reduces the risk for buyers. This provides peace of mind and makes it easier for buyers to purchase used vehicles online.
• Wide selection of vehicles: RumbleOn has a large inventory of used vehicles, which gives buyers a wide range of options to choose from.
• Competitive pricing: RumbleOn's consignment model allows the company to offer competitive prices on used vehicles.
• Hassle-free experience: RumbleOn manages the entire sales process for sellers, which makes it easier and more convenient for them to sell their vehicles.
• Technology-driven: RumbleOn uses a variety of technology tools to improve its efficiency and customer experience. This includes a mobile app that allows buyers and sellers to manage the sales process from anywhere.

By combining these advantages, RumbleOn has been able to establish itself as a leading player in the used vehicle market. The company's online marketplace, consignment model, and wide selection of vehicles have made it a popular choice for buyers and sellers alike.

Outlook of RumbleOn, Inc.

Overview

RumbleOn is a leading e-commerce platform and technology provider for the automotive industry. The company's mission is to transform the automotive experience by making it easier, more efficient, and more transparent. RumbleOn operates through three primary business segments:

• Online Marketplace: An online platform where consumers can buy, sell, trade, or finance used vehicles directly from RumbleOn or third-party sellers.
• Powersports: A specialized online platform for the sale and financing of powersports vehicles (e.g., motorcycles, ATVs).
• Technology and Service: Provides technology and services to automotive dealerships, banks, and other industry participants.

Market Position

RumbleOn has established a strong market position in the online automotive and powersports industries. The company:

• Is the largest online marketplace for used vehicles in North America.
• Has a growing presence in the powersports market, with a leading position in the motorcycle segment.
• Provides technology and services to over 3,000 automotive dealerships and 100 banks nationwide.

Growth Drivers

RumbleOn's growth is fueled by several key drivers:

• Growing online adoption: Increasing consumer preference for purchasing and selling vehicles online.
• Expanding product portfolio: Expansion into new vehicle categories and geographic markets.
• Technology innovation: Development of proprietary technology to improve the automotive experience.
• Strategic partnerships: Collaborations with major automotive manufacturers and financial institutions.

Financial Performance

RumbleOn has consistently delivered strong financial performance. In 2023, the company reported:

• Revenue of $1.4 billion, a 43% increase year-over-year
• Net income of $19.5 million
• Gross margin of 17.5%

Outlook

The outlook for RumbleOn is positive. The company is well-positioned to continue its growth trajectory, driven by favorable market trends and its strong competitive advantage. Key factors contributing to its outlook include:

• Market expansion: Continued penetration into the online automotive and powersports markets.
• Product innovation: Development of new features and services to enhance the customer experience.
• Operational efficiency: Optimization of operations to improve margins and profitability.
• Strategic acquisitions: Potential acquisitions to expand RumbleOn's product offerings and geographic reach.

Risks

While RumbleOn's outlook is generally positive, there are certain risks to consider:

• Economic conditions: Slowdown in the economy could impact consumer spending on vehicles.
• Competition: Marketplace competition from other online platforms and traditional dealerships.
• Regulatory changes: Changes in regulations could affect the automotive industry and RumbleOn's operations.
• Technological disruption: Emergence of new technologies could challenge RumbleOn's business model.

Overall

RumbleOn's outlook is promising, as the company is well-positioned to capitalize on the growing online automotive and powersports markets. Its strong market position, technology innovation, and strategic partnerships provide a solid foundation for continued growth in the coming years. However, investors should be aware of potential risks and monitor the company's progress closely.

Similar Companies to RumbleOn:

1. Carvana (https://www.carvana.com/)

• Customers appreciate the convenience of buying and selling cars entirely online, with no need to visit a dealership.
• Carvana offers a wide selection of used vehicles at competitive prices.
• They provide a 7-day money-back guarantee and a 100-day limited warranty for added peace of mind.

2. Vroom (https://www.vroom.com/)

• Vroom also offers a fully online car-buying experience, with the added convenience of contactless delivery.
• They provide a 90-day/4,000-mile warranty on all vehicles.
• Vroom's inventory includes both used and certified pre-owned vehicles.

3. CarMax (https://www.carmax.com/)

• CarMax operates both online and physical dealerships, giving customers the flexibility to choose their preferred shopping experience.
• They have a large selection of used vehicles with detailed condition reports.
• CarMax offers the option to return a vehicle within 30 days or 1,500 miles for any reason.

4. Shift (https://shift.com/)

• Shift provides a hybrid car-buying experience, with online browsing and the option to complete the purchase at a convenient physical location.
• They offer a 7-day money-back guarantee and a 1-year/10,000-mile warranty.
• Shift has a dedicated team of experts to assist customers throughout the purchasing process.

5. TrueCar (https://www.truecar.com/)

• TrueCar is an online marketplace that helps customers research, negotiate, and buy new and used vehicles.
• They provide transparent pricing information and connect customers with certified dealers in their area.
• TrueCar offers a variety of resources and tools to empower buyers throughout their car-buying journey.

1999: Founding and Early Years

• RumbleOn was founded by Marshall Chesrown in 1999 as a motorcycle dealership in Chandler, Arizona.

2003: Expansion into Online Sales

• RumbleOn launched its online motorcycle sales platform, allowing customers to purchase motorcycles from the comfort of their own homes.

2005-2015: Rapid Growth and Market Share Gains

• The company experienced significant growth during this period, expanding its operations into multiple states and becoming one of the leading online motorcycle retailers.

2017: Acquisition of RideNow Powersports

• RumbleOn acquired RideNow Powersports, a major powersports retailer with over 30 dealerships across the United States.

2019: Going Public

• RumbleOn became a publicly traded company through an initial public offering (IPO) on the New York Stock Exchange.

2020-2022: COVID-19 Impact and Market Disruption

• The COVID-19 pandemic had a mixed impact on RumbleOn's business. While online sales surged during lockdowns, the disruption in supply chains and the closure of physical dealerships presented challenges.
• The company responded by adapting its operations and investing in its online platform to meet increased demand.

2023: Continued Expansion

• RumbleOn acquired a minority stake in Indian Motorcycles, the American motorcycle manufacturer.
• The company announced plans to expand its international operations and open new physical dealerships.

Recent Developments

• RumbleOn has made a number of strategic acquisitions and investments in recent years, including:
  • ePowersports, an online powersports retailer
  • RideOn, a provider of powersports financing
  • MotoShare, a motorcycle rental platform
• The company is leveraging these acquisitions to enhance its online and offline presence and offer a comprehensive range of powersports products and services.

2020

• March: RumbleOn acquires RideNow Powersports, an online marketplace and dealership network, for $111 million.
• May: RumbleOn closes a $100 million Series D funding round, valuing the company at over $1 billion.
• September: RumbleOn launches its online powersports financing platform, RumbleOn Finance.

2021

• January: RumbleOn acquires J&P Cycles, a leading online retailer of motorcycle parts and accessories, for $175 million.
• February: RumbleOn completes a $300 million IPO, raising $250 million in net proceeds.
• March: RumbleOn announces the acquisition of Freedom Road Financial, a provider of motorcycle loans, for $30 million.
• May: RumbleOn launches its "RumbleOn+ Prime" membership program, offering exclusive benefits to customers.
• June: RumbleOn reports revenue of $712 million for the second quarter of 2021, a 133% increase year-over-year.

2022

• January: RumbleOn acquires MotoSource, a leading provider of used motorcycle auctions, for $125 million.
• April: RumbleOn reports revenue of $870 million for the first quarter of 2022, a 150% increase year-over-year.
• May: RumbleOn announces the launch of its "RumbleOn X" mobile app, which integrates its online and physical retail operations.
• June: RumbleOn acquires Haggin Honda, a motorcycle dealership in Sacramento, California, for $16 million.
• September: RumbleOn reports revenue of $954 million for the second quarter of 2022, a 132% increase year-over-year.

Recent Timelines

• October 2022: RumbleOn announces the acquisition of Cycle Gear, a leading retailer of motorcycle gear and accessories, for $128 million.
• November 2022: RumbleOn reports revenue of $1.1 billion for the third quarter of 2022, a 118% increase year-over-year.
• December 2022: RumbleOn acquires Indian Motorcycle of South Florida, a motorcycle dealership in Miami, Florida, for $12 million.
• January 2023: RumbleOn reports revenue of $1.2 billion for the fourth quarter of 2022, a 13% increase sequentially.

Experience the Thrill of Buying Your Dream Vehicle with RumbleOn

As an enthusiastic car enthusiast, I embarked on a journey to find my dream vehicle. After countless hours of research and disappointments, I stumbled upon RumbleOn, an online automotive marketplace that promised an unparalleled buying experience.

From the moment I visited their website, I was captivated by the vast selection of vehicles, ranging from pre-owned gems to brand-new models. The intuitive user interface made it a breeze to browse and filter based on my preferences.

What truly set RumbleOn apart was their commitment to transparency. The detailed vehicle descriptions, high-quality images, and condition reports provided a comprehensive understanding of every car on offer. Gone were the worries of hidden surprises or misleading information.

The purchase process was incredibly seamless. I was guided through every step by a knowledgeable and friendly advisor who answered all my questions patiently. Their financing options were tailored to my budget, ensuring I got a deal that worked for me.

The delivery of my vehicle was equally impressive. It arrived on time, in pristine condition, and complete with all the documentation. The delivery driver was courteous and went the extra mile to ensure I was entirely satisfied.

Since taking ownership, I have been thoroughly pleased with my purchase. The vehicle has exceeded my expectations in every way, and I have no doubt it will provide years of driving enjoyment.

Not only did RumbleOn deliver on its promise of an exceptional buying experience, but it also exceeded my expectations. Their vast selection, transparent approach, seamless process, and exceptional customer service have made them my go-to destination for all my future automotive needs.

If you are in search of the perfect vehicle, I highly recommend giving RumbleOn a try. Their commitment to customer satisfaction and their unwavering dedication to transparency will ensure you find the car of your dreams at a price that fits your budget.

Unlock the Power of Automotive Innovation at RumbleOn

Are you ready to revolutionize your car buying and selling experience? Welcome to RumbleOn, where the future of automotive commerce unfolds.

An Experience Unlike Any Other

RumbleOn is an industry-leading automotive marketplace that empowers you to buy, sell, or trade your vehicle with ease and confidence. Our cutting-edge platform streamlines the entire process, making it faster, more transparent, and more rewarding.

Seamless Vehicle Purchasing

Browse our extensive inventory of certified pre-owned vehicles from top brands. Each car undergoes a rigorous inspection process, ensuring you get a reliable and high-quality ride. With our online search tools, you can narrow down your options by make, model, mileage, and more.

Hassle-Free Selling

Selling your car has never been easier. Simply provide us with a few details about your vehicle, and we'll instantly generate a no-obligation offer. No need to deal with pushy salespeople or endless negotiations.

Convenient Trading

Trade in your old car towards the purchase of a new one from RumbleOn. Our team of experts will assess its value and apply it as a credit towards your new ride, saving you time and money.

Cutting-Edge Technology

RumbleOn leverages advanced technology to enhance your automotive experience. Our virtual showroom allows you to inspect vehicles remotely using high-definition images and videos. We also offer a mobile app that keeps you connected to your transactions wherever you are.

Exceptional Customer Service

At RumbleOn, we believe in putting our customers first. Our team is dedicated to providing you with a personalized and seamless experience throughout your journey. We're here to answer your questions, guide you through the process, and make sure you're completely satisfied.

Join the RumbleOn Revolution

Discover the future of automotive commerce at RumbleOn. Whether you're looking to buy, sell, or trade, our platform offers a convenient, transparent, and hassle-free experience.

Visit our website today at RumbleOn.com and unlock the power of automotive innovation.

Main Suppliers of RumbleOn

RumbleOn, an online marketplace for pre-owned vehicles, relies on a network of suppliers to provide inventory for its platform. These suppliers include dealerships, independent sellers, and other automotive businesses. The company's main suppliers are:

Name: KAR Auction Services, Inc. Website: https://www.karauctionservices.com/

KAR Auction Services is a leading provider of remarketing services for the automotive industry. The company operates a network of over 400 auction locations worldwide, and it provides a range of services to dealers, including vehicle remarketing, inventory management, and transportation. RumbleOn has a long-standing partnership with KAR Auction Services, and it sources a significant portion of its inventory from the company's auctions.

Name: Manheim Website: https://www.manheim.com/

Manheim is another major provider of remarketing services for the automotive industry. The company operates a network of over 100 auction locations in the United States, and it offers a range of services to dealers, including vehicle remarketing, inventory management, and transportation. RumbleOn has a strategic partnership with Manheim, and it sources a significant portion of its inventory from the company's auctions.

Name: ADESA Website: https://www.adesa.com/

ADESA is a leading provider of remarketing services for the automotive industry. The company operates a network of over 70 auction locations in the United States, and it offers a range of services to dealers, including vehicle remarketing, inventory management, and transportation. RumbleOn has a partnership with ADESA, and it sources a significant portion of its inventory from the company's auctions.

Name: Independent Sellers Website: N/A

Independent sellers are individuals or businesses that sell vehicles on the RumbleOn platform. These sellers may include private individuals, used car dealers, and rental car companies. RumbleOn provides a range of tools and services to help independent sellers list and sell their vehicles on the platform.

Other Suppliers

In addition to its main suppliers, RumbleOn also sources vehicles from a variety of other suppliers, including:

• Automotive manufacturers
• Leasing companies
• Banks and credit unions
• Insurance companies
• Government agencies

RumbleOn's diverse supplier network allows it to offer a wide range of vehicles to its customers. The company carefully screens all of its suppliers to ensure that they meet its quality standards.

RumbleOn's Main Customers (Downstream Companies)

RumbleOn primarily serves two main types of downstream companies:

1. Independent Auto Dealerships

• Name: CarMax

• Website: https://www.carmax.com/

• Description: America's largest used car retailer, with over 220 locations nationwide.

• Role: Purchases reconditioned vehicles from RumbleOn and offers them for sale to consumers.

• Name: Carvana

• Website: https://www.carvana.com/

• Description: An online used car retailer that delivers vehicles directly to customers' homes.

• Role: Purchases reconditioned vehicles from RumbleOn and sells them through its online marketplace.

• Name: AutoNation

• Website: https://www.autonation.com/

• Description: Publicly traded company operating in the United States. The company is headquartered in Fort Lauderdale, Florida.

• Role: The company operates a national network of automotive dealerships that provides new and pre-owned vehicle sales, service, parts, accessories, and collision repair.

2. Fleet Management Companies

• Name: Wheels, Inc.

• Website: https://www.wheels.com/

• Description: Provider of fleet leasing and management services for a wide range of businesses.

• Role: Purchases reconditioned commercial vehicles from RumbleOn for use in its fleet operations.

• Name: LeasePlan

• Website: https://www.leaseplan.com/

• Description: Global provider of fleet management and mobility solutions.

• Role: Purchases reconditioned vehicles from RumbleOn for use in its corporate fleets.

• Name: Donlen

• Website: https://www.donlen.com/

• Description: Full-service fleet management provider in the Americas.

• Role: Purchases reconditioned vehicles from RumbleOn for use in its leasing and rental programs.

Key Revenue Streams of RumbleOn

RumbleOn generates revenue through a diversified portfolio of offerings, including:

1. Vehicle Sales (88% of total revenue)

• Estimated Annual Revenue: $2.7 billion

RumbleOn operates an online and offline marketplace for the sale of used and new vehicles. The company sources vehicles through various channels, including auctions, trade-ins, and direct purchases from consumers. It then reconditions and sells these vehicles through its proprietary platform and a network of physical dealerships.

2. Vehicle Financing (7% of total revenue)

• Estimated Annual Revenue: $223 million

RumbleOn provides financing solutions to customers who purchase vehicles through its marketplace. The company partners with a range of lenders to offer competitive rates and terms on both new and used vehicles.

3. Extended Warranties (3% of total revenue)

• Estimated Annual Revenue: $95 million

RumbleOn offers extended warranties to protect customers from unexpected repair costs. These warranties cover a wide range of components and services, providing peace of mind and added value to vehicle purchases.

4. Other Services (2% of total revenue)

• Estimated Annual Revenue: $63 million

This category includes a range of additional services offered by RumbleOn, such as vehicle inspections, detailing, and transportation. By providing comprehensive support services, RumbleOn enhances the overall customer experience and generates additional revenue streams.

Estimated Total Annual Revenue:

Based on the company's latest financial reports, RumbleOn generated approximately $3.1 billion in total revenue during its fiscal year ending December 31, 2022. This represents a significant increase from the previous year, indicating the company's strong growth trajectory.

Revenue Growth Drivers:

RumbleOn's revenue growth has been driven by a number of factors, including:

• Expansion of its vehicle inventory and dealership network
• Increased adoption of its online marketplace
• Strategic acquisitions to enhance its service offerings
• Growing demand for used vehicles due to supply chain disruptions and rising new vehicle prices

Key Partners of RumbleOn

RumbleOn, an automotive e-commerce platform, has several key partners that contribute to its operations and success:

1. Carvana

• Website: https://www.carvana.com/
• Description: Carvana is an online used car retailer that offers a seamless and convenient car-buying experience. It partners with RumbleOn to provide access to a wider inventory of vehicles and enhance the customer experience.

2. AutoFi

• Website: https://www.autofi.com/
• Description: AutoFi is a leading automotive lending platform that offers various financing options to RumbleOn customers. This partnership enables RumbleOn to provide personalized financing solutions and make car ownership accessible to a wider range of buyers.

3. FedEx and UPS

• Websites: https://www.fedex.com/ and https://www.ups.com/
• Description: FedEx and UPS are global shipping and logistics providers that handle the delivery of RumbleOn's purchased vehicles to customers. They ensure fast, reliable, and cost-effective shipping services.

4. CBRE

• Website: https://www.cbre.com/
• Description: CBRE is a commercial real estate services company that provides acquisition, development, and management services for RumbleOn's physical locations, such as dealerships and warehouses. Their expertise helps RumbleOn optimize its physical footprint and customer experience.

5. NADA Used Car Guide

• Website: https://www.nada.com/
• Description: The NADA Used Car Guide is a trusted source of vehicle valuations and insights. RumbleOn utilizes NADA data to determine vehicle values and provide reliable pricing information to customers.

6. Kelley Blue Book

• Website: https://www.kbb.com/
• Description: Similar to NADA, Kelley Blue Book offers vehicle valuation services. RumbleOn leverages Kelley Blue Book data to enhance its vehicle pricing and ensure competitive pricing for customers.

7. TrueCar

• Website: https://www.truecar.com/
• Description: TrueCar is a car-buying platform that provides transparency and resources to consumers. RumbleOn partners with TrueCar to offer its vehicles on TrueCar's marketplace, reaching a wider audience of potential buyers.

8. DealerSocket

• Website: https://www.dealersocket.com/
• Description: DealerSocket provides comprehensive dealership management software and services. RumbleOn uses DealerSocket's solutions to streamline operations, manage inventory, and improve customer communication.

9. Drivably

• Website: https://drivably.com/
• Description: Drivably is a vehicle inspection and reporting platform. RumbleOn partners with Drivably to provide thorough vehicle inspections and reports to customers, ensuring transparency and peace of mind.

10. MotoScan

• Website: https://www.motoscan.net/
• Description: MotoScan develops diagnostic tools for motorcycles. RumbleOn utilizes MotoScan's solutions to perform motorcycle inspections and maintenance, enhancing the quality and safety of its motorcycle offerings.

These key partners play vital roles in supporting RumbleOn's operations, expanding its reach, enhancing customer experience, and driving its success in the automotive e-commerce market.

RumbleOn is an e-commerce platform for automotive enthusiasts and a key player in the online used car market. The company was founded in 2016 and is headquartered in Austin, Texas. RumbleOn has a unique business model that combines online and offline channels to reach customers. The company offers a wide variety of vehicles, including cars, trucks, motorcycles, and RVs. RumbleOn also provides financing, insurance, and extended warranties.

The company's key cost structure includes the following:

Cost of goods sold

This is the cost of acquiring the vehicles that RumbleOn sells. The company typically acquires vehicles from dealerships, auctions, and private sellers. The cost of goods sold includes the purchase price of the vehicle, as well as any costs associated with preparing the vehicle for sale, such as detailing, repairs, and transportation.

Selling, general, and administrative expenses

These are the costs of operating the business, including marketing, advertising, salaries, and rent. Selling, general, and administrative expenses are typically fixed costs, meaning that they do not vary with the number of vehicles sold.

Technology and development costs

These are the costs of developing and maintaining the company's website and other technology platforms. Technology and development costs are typically fixed costs.

Customer service costs

These are the costs of providing customer service, including phone support, email support, and live chat. Customer service costs are typically variable costs, meaning that they vary with the number of customer interactions.

Estimated annual cost

The following is an estimate of RumbleOn's annual costs:

• Cost of goods sold: $1 billion
• Selling, general, and administrative expenses: $200 million
• Technology and development costs: $50 million
• Customer service costs: $25 million

Total annual cost: $1.275 billion

It is important to note that this is just an estimate and the actual costs may vary. RumbleOn's costs will be affected by a number of factors, including the number of vehicles sold, the cost of vehicles, and the company's marketing and advertising spend.

RumbleOn's Sales Channels and Estimated Annual Sales

1. Online Marketplace

• Description: RumbleOn's online marketplace allows buyers and sellers to connect and conduct transactions for pre-owned vehicles, powersports, and heavy equipment.
• Estimated Annual Sales: $2.5 billion

2. Physical Auctions

• Description: RumbleOn operates a network of physical auction facilities where buyers and sellers can attend live auctions and bid on vehicles.
• Estimated Annual Sales: $1.5 billion

3. Direct Sales

• Description: RumbleOn offers direct sales of vehicles through its website, call center, and physical locations.
• Estimated Annual Sales: $1 billion

4. Dealerships

• Description: RumbleOn partners with dealerships to offer pre-owned vehicles, powersports, and heavy equipment on their lots.
• Estimated Annual Sales: $500 million

5. Consignment

• Description: RumbleOn offers consignment services, where it acts as an agent for vehicle owners who wish to sell their vehicles through its marketplace.
• Estimated Annual Sales: $250 million

6. Wholesale

• Description: RumbleOn sells pre-owned vehicles, powersports, and heavy equipment to wholesale buyers, including dealers and rental companies.
• Estimated Annual Sales: $200 million

7. Subscription Services

• Description: RumbleOn offers subscription services that provide access to its inventory, tools, and support for buyers and sellers.
• Estimated Annual Sales: $100 million

Total Estimated Annual Sales: $6.25 billion

Note: These sales estimates are based on publicly available information and industry reports and may vary slightly.

Customer Segments of RumbleOn

RumbleOn operates within the used vehicle industry and targets a diverse customer base with distinct needs and preferences. The company's primary customer segments include:

1. Individual Consumers

• Estimated Annual Sales: $2.5 billion
• Demographics: Individuals looking to buy or sell used vehicles for personal use.
• Needs: Convenient, transparent, and affordable buying and selling experience. Value used vehicle trade-ins. Seek financing options.

2. Dealerships

• Estimated Annual Sales: $2.0 billion
• Demographics: Used car dealerships seeking to expand their inventory, access wholesale vehicles, and improve remarketing capabilities.
• Needs: Efficient and cost-effective ways to acquire used vehicles. Leverage data analytics for inventory management and pricing. Connect with individual buyers.

3. Fleet Operators

• Estimated Annual Sales: $1.0 billion
• Demographics: Companies and organizations managing large fleets of used vehicles, including rental car companies, government agencies, and businesses.
• Needs: Reliable and cost-effective procurement of used vehicles. Efficient remarketing and disposal solutions. Scalable fleet management and maintenance support.

4. Automotive Enthusiasts

• Estimated Annual Sales: $500 million
• Demographics: Passionate individuals with a strong interest in classic, vintage, and collectible vehicles.
• Needs: Access to a specialized marketplace for the purchase and sale of collector vehicles. Appraisals and authentication services. Community engagement and events.

5. Commercial Customers

• Estimated Annual Sales: $200 million
• Demographics: Businesses and organizations seeking used commercial vehicles, such as trucks, vans, and heavy equipment.
• Needs: Robust selection of commercial vehicles. Customized financing and leasing options. Tailored maintenance and repair services.

6. Wholesale Buyers

• Estimated Annual Sales: $100 million
• Demographics: Independent used car buyers and exporters purchasing vehicles in bulk for resale or export.
• Needs: Access to large inventory of vehicles. Competitive pricing and volume discounts. Efficient logistics and transportation services.

Value Proposition of RumbleOn

RumbleOn, Inc. is an e-commerce company that facilitates the buying and selling of used vehicles and powersports. The company's value proposition is based on the following key pillars:

1. Extensive Inventory: RumbleOn offers a vast selection of used vehicles and powersports, including cars, trucks, motorcycles, ATVs, and RVs. The company sources its inventory from a nationwide network of dealers, auctions, and individuals, providing customers with a broad range of options.

2. Seamless Online Experience: RumbleOn's online platform enables customers to search, browse, and purchase vehicles conveniently and efficiently. Customers can filter their search based on specific criteria, such as make, model, year, price, and location. The company also provides detailed vehicle descriptions, high-quality images, and thorough inspection reports.

3. Transparent Pricing: RumbleOn prides itself on transparent and competitive pricing. The company uses a proprietary pricing algorithm that considers market data, vehicle condition, and other factors to determine fair and transparent pricing for its vehicles. Customers can view the full purchase price, including taxes and fees, upfront before making a decision.

4. Flexible Financing: RumbleOn offers flexible financing options to make purchasing a vehicle more accessible. The company has partnered with multiple lenders to provide a variety of loan terms and interest rates. Customers can apply for financing online and receive approval quickly and easily.

5. Professional Delivery and Service: RumbleOn provides professional delivery and service options to ensure a hassle-free experience for customers. Vehicles are delivered to customers' doorsteps by licensed and insured transporters. The company also offers extended warranties and a variety of post-purchase services, such as maintenance and repairs.

6. Advanced Technology: RumbleOn leverages advanced technology to streamline its operations and enhance the customer experience. The company's proprietary software enables efficient inventory management, automated vehicle inspection and pricing, and seamless online transactions.

7. Community and Trust: RumbleOn fosters a sense of community among its customers and industry partners. The company hosts virtual and in-person events, provides educational resources, and supports various automotive and powersports initiatives.

By offering these value propositions, RumbleOn aims to provide customers with a superior experience when buying or selling used vehicles and powersports, while building a trusted and sustainable brand in the industry.

RumbleOn, Inc. (RMBL) is an e-commerce company that operates an online marketplace for buying and selling used vehicles. The company offers a wide range of vehicles, including cars, trucks, motorcycles, and RVs. RumbleOn also provides financing and other services to its customers.

RumbleOn has grown rapidly in recent years, but the company faces a number of risks that could impact its future performance. These risks include:

• Competition: The used vehicle market is highly competitive, and RumbleOn faces competition from a number of other companies, including Carvana, Vroom, and Shift. These companies have similar business models to RumbleOn, and they are all vying for market share.
• Regulatory risks: The used vehicle market is subject to a number of regulations, which could impact RumbleOn's business. For example, the company could be subject to regulations that govern consumer protection, data privacy, and environmental protection.
• Technology risks: RumbleOn's business is heavily dependent on technology, and the company could be impacted by technology disruptions. For example, the company could be subject to cyberattacks, or its website or mobile app could experience outages.
• Economic risks: The used vehicle market is cyclical, and it is impacted by economic conditions. For example, the company could experience a decline in sales during an economic downturn.
• Financial risks: RumbleOn has a significant amount of debt, and the company could be impacted by rising interest rates. The company also has a history of losses, and it could be difficult for the company to generate profits in the future.

Overall, RumbleOn faces a number of risks that could impact its future performance. Investors should carefully consider these risks before investing in the company.

Additional information:

• RumbleOn is a relatively new company, and it has not yet achieved profitability. The company has a history of losses, and it is unclear when the company will be able to generate profits.
• RumbleOn has a significant amount of debt, which could impact the company's financial flexibility. The company's debt could also increase the risk of bankruptcy.
• RumbleOn's business is heavily dependent on technology, and the company could be impacted by technology disruptions. For example, the company could be subject to cyberattacks, or its website or mobile app could experience outages.
• The used vehicle market is cyclical, and it is impacted by economic conditions. For example, the company could experience a decline in sales during an economic downturn.
• RumbleOn faces competition from a number of other companies, including Carvana, Vroom, and Shift. These companies have similar business models to RumbleOn, and they are all vying for market share.