The startup was launched with much fanfare in late 2019, but the pandemic brought many physical retailers online, increasing competition.
Share prices have suffered though the first half of 2022.
Founder and CEO Alex Chesterman added: “The combination of rising inflation and interest rates with supply chain issues caused by the pandemic and war has driven up the cost of living and hit consumer confidence.”
“This perfect storm has placed cash conservation top of mind for the company, ahead of growth.”
Ian McMahon, a partner at business consultancy UHY Hacker Young said: “Following hot on the heels of Carzam’s administration last week, today’s job cuts show online-only car dealerships are really struggling.”
“It’s really disheartening to see jobs being put at risk or being cut after the huge transition the motor retail industry has been through in the last few years.”
“The online-only model is based on having lower costs than a bricks-and-mortar dealership would. However a lot of them have spent so much on customer acquisition and advertising that their costs are, per unit, comparable to those of a traditional used car dealership. There’s no sign that they are going to be able to acquire customers at a low enough cost in the near future.”
“We’ve also questioned the valuations at which some of these companies have raised funding.”