BigPicture
BIG PICTURE
End of the road for Cazoo
Image: Getty
WHAT?
Online car retailer Cazoo called in administrators after the loss-making company cut more than 700 jobs as part of a major restructuring project. The company first rose to prominence in 2021 when Covid-19 pandemic restrictions forced car buyers to browse and make their purchases online.
WHY?
The company had been struggling to raise money from investors, and in March it changed its model from being a dealer, where it bought and sold cars itself, to a marketplace where consumers can buy and sell cars.
HOW?
The business has never made a profit. While this isn’t unusual for a start-up, its losses have grown. In 2022 it posted a loss of £704m, up from £544m the year before, and in December last year it restructured debts of £485m.
$30m
Cazoo's current valuation. When it listed in 2021, it was valued at $7bn (£5bn) Source: New York Stock Exchange
4,500
The number of employees at its 2021 peak. Now, it is just 208 Source: BBC
15,000
The number of cars in Cazoo's inventory following its pivot to a platform model Source: Sky News
