eBay acquires Caramel to reduce risk and complexity of online car sales

There is e-commerce giant eBay announcement plans to achieve CaramelA startup that helps car sellers and buyers complete the final steps of the transaction — including verification, financing, paperwork, ownership transfer, insurance and more.

As eBay has grown over the years, it has had to evolve to stay competitive – last year, for example, the company Seller fees have been removed in the UK To tackle a new wave of marketplace startups. In the automotive space, in particular, eBay has acquired several startups to stay ahead of the curve, including Advertising and marketing technology company Cargigias well as UK classifieds site Motors.co.uk.

Last month, eBay’s old nemesis Amazon also entered the online car sales business Amazon Autos Launch In partnership with Hyundai. While it’s about finding and buying new vehicles directly from dealerships, it’s conceivable that Amazon could expand its scope to cover used vehicles in the future.

Ultimately, eBay wants to ensure it remains a go-to channel for safe, quick used car sales, at a time when consumers have more options than ever.

Founded in 2021 from Los Angeles, officially Caramel on Last year with some $19 million in funding from fellow supporters FJ LabsHearst Ventures, Zeev Ventures, and Primera Capital.

Caramel may be used to complete sales initiated through independent dealerships or marketplaces, including ebay. At check out, Caramel is provided as an option to verify identity of individuals, manage title transfer and registration and transfer funds. Buyers are also able to choose financing options and arrange delivery of the vehicle.

Although eBay already offers some guidelines and services to facilitate online car sales, viz Escrow to hold fundsBringing Caramel in-house will enable it to expedite the process by taking care of a huge portion of the post-sales stress administration.

But more than that, Chris PrilleBay Motors’ general manager said the acquisition was aimed at “building trust” in the car-buying process, helping buyers and sellers avoid scam.

Neither company disclosed the acquisition price, but eBay said it expects the deal to close in Q1 2025.