Cazoo to pull out of the EU in an effort to break even
Online car retailer Cazoo has announced that it will be pulling out of the EU in the hopes that it will break even and achieve their target of reaching profitability by the end of 2022. Cazoo like its rival, Cinch is heavily reliant on third-party investment.
The used car disruptor that spends hundreds of millions of pounds on advertising and sponsorships a year, including a £6M shirt deal with Aston Villa, a £10M shirt deal with Everton, and an undisclosed seven figure deal with Rugby League World Cup, 2021 will be cutting 750 jobs across Europe. Reports PA Media. The company also spent approximately £92.8M (€107.1M) acquiring Italian and Spanish rivals, Brumbrum and Swipcar in 2021.
Cazoo founder and chief executive Alex Chesterman, said: “Given our target of reaching profitability by the end of next year, we have taken the tough decision to focus solely on the huge UK used car market, worth over £100 billion annually.
“I would like to thank all our colleagues in the EU who are impacted by this decision, and we will of course look to support them in every way possible."
Cazoo's European business accounted for less than ten percent of their revenue this year.
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