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"Beepi guaranteed sellers a price, and if it couldn’t find a buyer in 30 days, it purchased the car. Beepi marked up the price and pocketed the difference. " W
by danderino 9y ago
"Beepi guaranteed sellers a price, and if it couldn’t find a buyer in 30 days, it purchased the car. Beepi marked up the price and pocketed the difference.
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Wait, am I understanding this correctly?
They guaranteed high prices which they were not able to find buyers for, and as a result bought the cars at those high prices?
And they immediately offered this service to all users?
That seems idiotic for a startup. I would have just tried to make money off charging a small transaction fee while working to see if the business model they were aiming for had any viability.
- coredog64 9y agoWhat is the business model for what you are proposing? Car sales on consignment? That might work for a small number of well off consumers, but most people don't own their cars outright. As such, they are unable or unwilling to continue to make payments on a car they can't use. TBH, it sounds very much like what open door does with housing.
- toomuchtodo 9y agoCarmax does it with millions of cars per year. It's not magic. If you're a market maker, you need volume, capital, and intelligent valuations and pricing of your goods.