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Cazoo is now charging customers £50 for delivering cars to their home.
The group announced the move as it reported strong revenue growth for Q2 ahead of its listing in the US.
Cazoo, which has invested heavily in sports sponsorship and advertising to drive growth, saw revenues increase six-fold to £141m with vehicles sold up 429% to 10,692. Gross profit for the period was £8m.
“Since the end of the quarter we have begun purchasing cars directly from consumers outside of part-exchanges as well as having started to charge for home delivery and both launches have gone well and exceeded our expectations,” said Alex Chesterman, OBE, founder & CEO of Cazoo,
It said it was looking to launch in France and Germany later this year and will accelerate its investment and rollout plans if it was “right to do so.”
Chesterman said: “Our gross profit per unit increased substantially during the quarter, up from £143 in Q1 to around £460 per unit in Q2, as a result of the continued improvements we made across our buying and operations.
“We remain on track to achieve revenues approaching $1bn in 2021 and expect operational efficiencies to continue to drive further gross margin improvements.
“During the quarter, we brought our vehicle refurbishment in-house and now have five vehicle preparation centres in operation across the UK, giving us a significant infrastructure advantage and complete control of our extensive UK-wide reconditioning and logistics operations.
“We also launched our new car subscription service, now offering consumers both new and used cars with the option to purchase, finance or subscribe, all entirely online.”