E-commerce giant eBay has announced plans to acquire Caramel, a startup that helps car sellers and buyers complete the final steps of the transaction

eBay acquires Caramel to reduce risk and complexity of online car sales

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2025-01-13 18:30:04

E-commerce giant eBay has announced plans to acquire Caramel, a startup that helps car sellers and buyers complete the final steps of the transaction — including verification, financing, paperwork, ownership transfer, insurance, and more.

As eBay has grown through the years, it has had to evolve to remain competitive — last year, for instance, the company removed seller fees in the U.K. to counter a new wave of marketplace startups. In the automotive realm, specifically, eBay has acquired several startups to stay ahead of the curve, including advertising and marketing tech company Cargigi, as well as U.K. classifieds site Motors.co.uk.

Last month, eBay’s old foe Amazon also entered the online car sales business with the launch of Amazon Autos in partnership with Hyundai. While that is all about finding and buying new vehicles directly from the dealership, it’s conceivable that Amazon could expand its scope to cover used vehicles in the future.

Ultimately, eBay wants to ensure it remains a go-to channel for secure, speedy used car sales, at a time when consumers have more options than ever.