eBay acquires Caramel to reduce the risk and complexity of selling cars online

The e-commerce giant eBay has announced the plans to acquire Caramela startup that helps car sellers and buyers complete the final steps of the transaction – including verification, financing, documents, ownership transfer, insurance and more.

As eBay has grown over the years, it has had to evolve to be competitive – last year, for example, the company remove seller fees in the UK to counter a new wave of market startups. In the automotive realm, specifically, eBay has acquired several startups to stay ahead of the curve, including the advertising and marketing technology company Cargigias well as UK classifieds site Motors.co.uk.

Last month, eBay’s old nemesis Amazon also entered the online car sales business with the launch of Amazon Autos in partnership with Hyundai. While it is about finding and buying new vehicles directly from the dealership, it is conceivable that Amazon could expand its scope to cover used vehicles in the future.

Ultimately, eBay wants to ensure that it remains a channel for the safe and fast sale of used cars, at a time when consumers have more options than ever.

Founded by Los Angeles in 2021, Caramel formally launched last year with about $19 million in funding from backers including FJ LabsHearst Ventures, Zeev Ventures and Primera Capital.

Candy can be used to fulfill sales initiated through retailers or independent markets, including eBay. At the point of checking, Caramel is provided as an option to verify the identity of individuals, manage the transfer of title and registrations, and transfer funds. Buyers are also able to choose financing options, and arrange the delivery of the vehicle.

While eBay already offers some guide and services to facilitate online car sales, such as escrow to hold fundsBringing Caramel in-house will allow you to speed up the process by taking care of a huge part of the stressful post-sales administration.

But more than that, Chris Prillmanaging director of eBay Motors, says that the purchase is all about “creating trust” in the process of buying vehicles, helping buyers and sellers to avoid. scams.

Neither company disclosed an acquisition price, but eBay said it expects the deal to close in Q1 2025.