eBay Acquires Caramel to Simplify Online Car Transactions
E-commerce leader eBay has announced its intention to acquire Caramel, a startup ensuring smoother car transactions by handling verification, financing, paperwork, ownership transfer, and insurance processes.
Caramel, founded in 2021 and based in Los Angeles, officially launched last year, backed by $19 million from investors including FJ Labs, Hearst Ventures, Zeev Ventures, and Primera Capital. Its services are tailored to sales from independent dealerships or marketplaces, including eBay, where it facilitates identity verification, title transfer, registration, and funds exchange during vehicle transactions. Additionally, buyers can select financing options and arrange vehicle delivery.
Image Credits: Caramel
'Trusted'
eBay's adaptation strategies to remain competitive have included removing UK seller fees last year. In the automotive sector, the company has acquired startups such as Cargigi for marketing enhancements and Motors.co.uk, a UK classifieds site. Last month, Amazon, a longtime competitor, stepped into online car sales with the launch of Amazon Autos in partnership with Hyundai, potentially expanding to cover used vehicles in the future.
eBay aims to be a secure, speedy channel for selling used cars, as consumer options amplify. While eBay offers guidance and services like escrow for online car sales, integrating Caramel is set to alleviate post-sale administrative stress.
Image Credits: Caramel
Chris Prill, general manager at eBay Motors, emphasizes that the deal enhances trust in vehicle purchases and aids in avoiding consumer scams. "Buying a car is a big moment — Caramel’s platform brings it all into one simple, seamless process: title and identity verification, insurance, financing – even shipping the car to the buyer after purchase," Prill stated. "With Caramel and eBay combining forces, both buyers and sellers will be able to complete vehicle transactions on eBay with greater peace-of-mind, and Caramel can further establish itself across a myriad of platforms."
While financial specifics of the acquisition were not shared, eBay anticipates finalizing the deal by the first quarter of 2025.