Hellocar is another UK car-buying startup closing doors

Nov 8, 2017 · techcrunch.com

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The used-car market seems ripe for disruption, not least in terms of customer service and creating a better experience online. However, if recent events are anything to go by, it is a hard nut to crack. Following Carspring going quiet after Rocket Internet pulled its funding, another U.K. car-buying startup looks to be shutting up shop.

According to sources, London-based Hellocar has ceased trading, and hasn’t listed any available cars for sale since at least late October. The startup was incubated by Founders Factory before being "spun out," and in February announced it had raised £1 million in a funding round led by JamJar Investments (the venture capital fund run by the Innocent Drinks founders) and Zoopla founder and CEO Alex Chesterman.

A spokesperson for Hellocar has since confirmed that the company "is closing," issuing the following statement:

We can confirm that Hellocar is closing. This was a bold, ambitious concept – the team sold cars, had no returns and received excellent customer reviews, but ultimately the model proved too complex to scale at this time. A significant amount of money will be protected and returned to Hellocar’s investors.

Founded in 2016 by Founders Factory and car industry entrepreneur Nic Carnell, Hellocar was described as a new website for buying used cars online without the need for a dealer. It was akin to a classic marketplace play that moved the car-buying process online to better match supply and demand, and in doing so create an improved customer experience.

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