Carvana impresses investors with recon capabilities
Carvana hosted institutional investors and analysts for a tour of its Inspection and Reconditioning Center (IRC) in Haines City, Fla. And according to Carvana’s recap of the festivities, the investment community liked what it saw.
The online used-vehicle retailer said the event on Nov. 30 provided a real-time look at the company’s operational efficiency gains, proprietary technologies and capacity for future growth.
A news release indicated members of Carvana’s leadership team shared an overview of the facility’s operations and answered questions, providing institutional investors and analysts with a deeper understanding of the company’s strategic initiatives and quality standards.
Wedbush analysts had this reaction after the visit.
“Having visited two other IRCs pre-pandemic, we came away impressed with the improvement in process, standardization and efficiency in this latest prototype facility, with in-house software facilitating much of the most recent improvement,” Wedbush analysts said, according to the Carvana news release.
Carvana mentioned the tour highlighted the company’s software development, a cornerstone of its approach to vehicle reconditioning.
Analysts at William Blair offered this assessment, according to Carvana.
“Carvana’s enhanced proprietary software underpins everything behind the scenes, with the goal to get data at the right time to the right users to maximize efficiencies and enhance the customer experience,” they said.
Carvana currently operates 17 IRCs across the country with an additional 56 ADESA locations that support Carvana’s vehicle reconditioning, infrastructure, and logistics capable of providing coverage to 81.1% of the U.S. population.
Speaking to Carvana’s current utilization of its infrastructure, William Blair analysts said, according to the release, “Given significant excess capacity across its system (which can support a tripling in volume), Carvana sees a clear opportunity for significant leverage when it returns to growth.”