Shift eliminated its test drive offering and focused on sales through its online channel in the third quarter — key parts of its previously announced restructuring plan, Clements said. The company has also shifted its inventory toward value vehicles, which it defines as vehicles older than eight years or with more than 80,000 miles. Half of the Shift mix is now considered a value vehicle, Clements said.
The restructuring also included reducing the number of centers from 10 to three to allow the company to focus on its West Coast presence in the third quarter. Clements previously told Automotive news that retail locations in Los Angeles, Oakland, California, and Portland, Oregon remain open.
Shift Technologies’ actions fell 11 percent to 41 cents in morning trading Wednesday.
In August, Shift Technologies also announced that it had agreed to a stock exchange merger with CarLotz, a used car consignment company. Shift Technologies and CarLotz will hold a special meeting via webcast on December 7 to allow their stockholders to vote on key proposals in the merger agreement. document filed Tuesday with the US Securities and Exchange Commission.
Total revenue for the 3rd quarter: $161.9 million, down 10 percent from a year earlier.
Net loss for the 3rd quarter: $75.8 million, up from a loss of $37.389 million a year earlier.
Sold cars for e-commerce in the 3rd quarter: 4,855, a reduction of 25 percent.
Q3 e-commerce gross profit: $529, down 54 percent.