This week Canada Drives announced plans to restructure its business operations to better prepare the company for success.
Since 2020, Canadians have been able to buy their car completely online through the Vancouver-based car dealership.
While the response from customers was strong, the rising costs of holding inventory, amongst other headwinds, has made this specific business model no longer viable in the long-term. As a result, Canada Drives will no longer sell cars beyond its existing inventory.
As part of their restructuring plan, Canada Drives will narrow the company’s focus to the two specific business lines that have consistently received praise from customers, and enable the company to scale a less capital intensive and profitable business.
The first line of business the company will focus on is providing the easiest way for Canadians to sell their vehicle via an instant online offer.
Since 2021, more than 10,000 Canadians have sold their vehicle directly to Canada Drives and the company intends to continue scaling this market leading solution by partnering with automotive dealerships across the country.
The second line of business the company will focus on is helping Canadians get approved for automotive financing online, facilitated via a network of automotive dealerships throughout Canada.
Canada Drives has been in the business of providing this service for Canadians and automotive dealers since 2010, and over that time, has served over one million Canadians.
Canada Drives raised a $40 million funding round in June 2022 from Mississauga-based goeasy.
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