Carvana plans to invest $500 million on new facilities and the hiring of thousands of new workers, according to the Wall Street Journal.
That will be just the start of planned expansions over the coming two years, including the doubling of its network of reconditioning centers and a 50% increase of its headcount.
Emboldened by increased interest in online car buying during the pandemic, the company plans to open up two reconditioning centers this year, and another eight next year.
The company dedicated more than half of its $360 million in capital expenditures last year to opening two reconditions centers. It had a total of 11 in operation when it discussed expansion plans during a February earnings call with investors.
The firm, which had 10,400 full- and part-time staff at the end of 2020, plans to hire 5,000 more workers, although it didn’t reveal the pace of hiring to the Journal.
Carvana’s exclusively online sales approach drove performance that far exceeded its brick-and-mortar competitors. During 2020, Carvana posted retail sales of 244,111, up 37% year on year.
By comparison, top used-car competitor CarMax, which launched an online sales option just over a year ago, sold 832,640 cars in fiscal 2020, for a smaller 11% year-on-year gain. AutoNation, the second biggest national car retailer, posted 490,836 retail sales (new and used), down 7% from 2019.