Used-car startup Beepi expands its reach

Beepi, a used-car company that sells online, will launch a new service this week that delivers cars to buyers throughout the United States, no matter where the car is when it is sold. The service is designed to compete with similar offerings by rivals Vroom and CarMax, and is a prime example of how customer expectations are driving the marketplace.

The service, however, does come with a catch – customers will have to pay extra for delivery, particularly for a car that is far away from the buyer. Beepi says, for example, that a buyer in Dallas will pay $899 extra in delivery fees to purchase a car located in New York.

By comparison, Vroom offers free nationwide delivery, as does CarMax, which uses its network of stores to move cars to meet the needs of customers.

Beepi started selling in 2014 and delivered primarily in markets where it had hubs. Its trademark has been delivering the car with a bright red bow on it. The company averages a commission of 9 to 10 percent from each sale. Beepi estimates that it has had a 95 percent increase in demand this year through June.

(Source: www.wsj.com)

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