Cazoo acquires Spanish subscription firm Swipcar

Cazoo has acquired Swipcar, a Spanish digital car subscription business.

The deal will enable Cazoo to accelerate is plans to launch in Spain and Italy, as part of a wider European expansion.

Founded in 2018, Swipcar has grown to a team of around 100 staff, based in Barcelona, and offers a wide selection of cars available from various leasing company partners for an all-inclusive single monthly subscription payment. As well as operating in Spain, Swipcar has also recently launched in Italy and Portugal.

Alex Chesterman OBE, founder & CEO of Cazoo, said: “Swipcar has built a market-leading car subscription marketplace in Spain adding hundreds of new customers every month. This deal will enable us to accelerate our launch plans in Spain and Italy, offering consumers the option of buying, selling, financing or subscribing to a car entirely online. I look forward to welcoming Julio and his team to Cazoo and to working with them to deliver the best experience to consumers looking for their next car in Europe.”

Cazoo is one of the fastest growing businesses in Europe, pioneering the shift to online car buying and selling and has already sold over 40,000 cars online since its launch in the UK less than two years ago, as well as becoming the leading consumer car subscription player in Europe.

It acquired Swipcar for €30 million (£25m) for a mix of cash and Cazoo shares. The transaction is expected to have a negligible impact on Cazoo’s FY2021 operating results.

This latest acquisition follows that of online commercial vehicles retailer Van365 ahead of its launch into the van market later this year.

Since its launch, Cazoo has acquired Imperial Cars, vehicle preparation businesses Smart Fleet Solutions and SMH Fleet Solutions, subscription providers Cluno and Drover, and the vehicle valuations provider Cazana.

Last month it published financial results for the first half of 2021 which revealed that the £5 billion-valued online car retailer had delivered a £69m adjusted EBITDA loss in the period.

Its results for a period, which saw used cars appreciating in price at an unprecedented rate due to supply shortages showed that, despite revenues up 521% to £248m as gross margin rose 9ppts, it failed to achieve profitability in the period to June 30.