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This statistic highlights Shift Technologies’ Revenue by Segment, split across e-commerce revenue (net), wholesale vehicle revenue, and other revenue, reported from Q3 2019 onwards..
|Segment||Q3 2020||Q2 2021||Q3 2021||Contribution in Q3 2021|
|E-commerce Revenue (net)||$48.49||$129.69||$156.25||86.90%|
|Wholesale Vehicle Revenue||$9.39||$20.09||$17.34||9.64%|
(All figures in millions, except percentages)
Shift Technologies’ total revenue increased from $59.92 million to $179.81 million, from Q3 2020 to Q3 2021, leading to a 200% growth in revenue on a year-on-year basis. The revenue also grew by 16.1% on a quarter-on-quarter basis, when compared to $154.86 million in Q2 2021.
Despite taking various measures, there was a sharp fall in sales in 2020 and the multiple lockdowns impacted people’s ability to purchase vehicles. Also, the covid-19 pandemic has led to a large population of people working from their homes and hence the demand for vehicles declined altogether. The whole impact of this pandemic will also depend upon future developments which are highly uncertain and unpredictable.
Shift Technologies earn revenue from the following segments:
The company sells used vehicles to customers via its platform. There is a fixed transaction price and the company receives the revenue directly within a short period, as soon as the customers get their financing. The customers may also trade in their existing vehicles to reduce costs. This revenue does not include sales tax, government fees, or registration fees.
The total revenue from this segment grew from $48.49 million in Q3 2020 to $156.25 million in Q3 2021, marking a growth of approximately 222% in revenue on a year-on-year basis. The revenue also grew by $26.56 million from Q2 2021 to Q3 2021, presenting a growth of about 54.8% in revenue on a quarter-on-quarter basis. Overall, this segment had the highest share of 86.9% in the company’s total revenue in Q3 2021.
Wholesale Vehicle Revenue
The company also sells vehicles to wholesalers. These are sold using wholesale auctions. It generally involves vehicles that are acquired from customers and do not meet the quality standards listed by the company.
The revenue grew from $9.39 million in Q3 2020 to $17.34 million in Q3 2021, making a 84.7% growth in revenue on a year-on-year basis. On the other hand, the revenue fell by $2.75 million, from Q2 2021 to Q3 2021, marking a 13.7% fall in revenue on a quarterly basis. This segment had a share of 9.64% in the company’s total revenue in Q3 2021.
It mainly includes vehicle protection products or financing products. The company provides various options for insurance, financing, warranties as well as other products like gap waiver, tire, and wheel protection. These services are often provided by third-party vendors and the company earns a commission on the same. The company is simply an agent in these types of transactions. The company is looking to further expand this segment by offering new products as well.
The total revenue from this segment too grew from Q3 2020 to Q3 2021, by $4.18 million, representing a 205% growth in revenue on a year-on-year basis. The revenue also grew from $5.08 million in Q2 2021 to $6.22 million in Q3 2021, leading to a 22.4% growth in revenue on a quarterly basis. This segment had the lowest share of 3.46% in the company’s total revenue in Q3 2021. This rise in revenue was mainly due to increased sales and partnerships with new firms.
Shift Technologies is a leader in end-to-end auto e-commerce platforms and is continuously transforming the used cars market through new technologies and better consumer experience. The company was established in 2014 and operates in six West Coast Hubs. It offers a wide variety of vehicles with different prices, ages and mileage to cater to every buyer’s preference. The company is the only dealer to provide a fully omni-channel fulfilment model. It provides online car buying services and even provides test-drive at any preferred locations or at the company’s hubs.
The company aims to make car ownership and purchase simple, fun, fair, and accessible to everyone. It provides extensive, digital solutions throughout the life cycle of car ownership: finding the right car, test drive, proper digital transaction, and high-value services afterward. The company enables this through software solutions, logistics, and mobile platforms. It uses various technologies to reduce the hassle and guesswork and provides more efficient, convenient, and reliable alternatives.
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