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Cazoo is pulling the plug on used car sales and switching its business model to a marketplace one, like Motors and Auto Trader.
It said its platform will now serve the 13,000 car dealers operating in the used car market.
The Cazoo board has been running the rule over the business since early December. Cazoo said the new model will make best use of its platform and dealers will be attracted by the more than one million customers who visit its website each month.
Cazoo will support interactions between consumers and car dealers across a variety of business models, including the ability to use the Cazoo platform to complete their transactions fully online.
The group is to start “unwinding” its stock through retail and wholesale channels from today.
It will cut jobs in line with the new model, focusing on its data, brand and digital marketing and commercial functions.
Last year Cazoo said that it might have to shut for business if it did not raise more money from investors.
The appetite from investors was low given the huge losses the company has made since its flotation in the US three years ago valued at $8bn. It is now valued at $70m, a 99% reduction in value.
Paul Whitehead, chief executive officer of Cazoo, said, “Transitioning Cazoo to a pure-play automotive marketplace business model leverages our key advantages: the nationally recognised and trusted Cazoo brand and the Cazoo ecommerce technology platform.
“We look forward to completing this transition and starting an exciting new chapter for Cazoo, building upon our investment in both the Cazoo brand and in our ecommerce technology platform.”
Check out the Motor Trader guest blog from Kevin Gaskell on Cazoo