Vroom, an online used-car marketplace, got an enthusiastic reception from investors when it began trading on the Nasdaq Tuesday.

The stock $VRM soared 117 percent, doubling its IPO price of $22 a share.

Unlike businesses around the country that have struggled to make it through coronavirus lockdown restrictions, Vroom thrived.

"Customers are now appreciating our model even more than before [with] contact-free delivery and contact-free sales practices," Paul Hennessy, CEO of Vroom told Cheddar Wednesday.

Comparing the first quarter of 2019 to this year, Vroom saw substantial growth in the number of vehicles available on its mobile platform and average monthly users.

Cheddar

"Once we knew that we had some tailwinds in our business, we absolutely thought this was the right time to go, and we took advantage of that," Hennessy said. "It's a great day for our company, a great day for employees, and a real testament to the model."

Vroom has had a strong showing raising capital in the private markets. In December, the company announced a $254 million Series H financing round.

Illustration by Rob Jejenich/Cheddar

Vroom intends to invest the capital raised in the public markets into the marketing and development of its platform.

Though recent surveys the company has done suggest that customer willingness to buy a car online has doubled in three months, Hennessy doesn't believe that Vroom is only surging in popularity because of the pandemic.

"We see these changes as absolutely structural," Hennessy said. "Now we want to work even harder to deliver for our customers and deliver for our shareholders."

Share:
More In Business
Nestlé dismisses CEO after he has relationship with a subordinate
Nestlé has dismissed its CEO Laurent Freixe after an investigation into an undisclosed relationship with a direct subordinate. The company announced on Monday that the dismissal was effective immediately. An investigation found that Freixe violated Nestlé’s code of conduct. He had been CEO for a year. Philipp Navratil, a longtime Nestlé executive, will replace him. Chairman Paul Bulcke stated that the decision was necessary to uphold the company’s values and governance. Navratil began his career with Nestlé in 2001 and has held various roles, including CEO of Nestlé's Nespresso division since 2024.
Kraft Heinz undoes blockbuster merger after a decade of falling sales
Kraft Heinz is splitting into two companies a decade after they joined in a massive merger that created one of the biggest food companies on the planet. One of the companies will include brands such as Heinz, Philadelphia cream cheese and Kraft Mac & Cheese. The other will include brands like Oscar Mayer, Kraft Singles and Lunchables. When the company formed in 2015 it wanted to capitalize on its massive scale, but shifting tastes complicated those plans, with households seeking to introduce healthier options at the table. Kraft Heinz's net revenue has fallen every year since 2020.
Load More