Along with beverages, candy, recreational marijuana and charitable donations, cars in vending machines may be headed to Denver.
An early-stage development proposal was submitted to the city on Aug. 13 for a Carvana facility at 4700 E. Evans Ave., adjacent to Interstate 25. Renderings of the plan show a single-story office/showroom building, partially topped by Carvana’s car vending machine, which would stand 75 feet tall, as first reported by BusinessDen.
The Tempe, Arizona-based company allows customers to purchase, finance and sell or trade cars through their website. After a vehicle is purchased, customers can either have their car delivered or pick it up at one of the vending machines. Customers are given a “coin” to insert that brings the desired car down. Car buyers get to keep the saucer-sized coin.
The closest car vending machine locations are in Tempe and Oklahoma City. The rest are along the south and eastern side of the country
The area proposed for the new facility consists of 1.54 acres of undeveloped space on the east side of the interstate. This space, according to BusinessDen, is owned by Greenbox IV LLC, which purchased the land in February 2015 for $1.95 million.
The plan has not been reviewed or approved, and since it is a concept, may change significantly in size and use before formal site development plans are submitted to the city for review, according to a spokesperson from Denver’s Community Planning and Development department. Carvana declined to comment on the development plan.
Car deliveries through Carvana have been available to Denver buyers since 2018, and the company expanded its soon-as-next-day vehicle delivery to Colorado Springs, Boulder, Fort Collins and Greeley a year later.
CNBC reported in late 2019 that Carvana had not turned a profit since its launch in 2013. Furthermore, analyst consensus estimates predict the e-retailer won’t be cash-flow positive until 2022 and profitable until 2023. Forbes reported in March that between Feb. 21 and March 9 their stock price dropped 47%.
Tim Jackson, CEO of the Colorado Auto Dealers Association, said that when it comes to buying a car, buyers often tend to lean toward buying from a dealer because it is someone they know they can trust when things go wrong. In comparison to, say, buying a book on Amazon versus buying from a local bookstore, Jackson said the significance is the price and weight of the purchase.
“It is such a monumentally more meaningful investment,” Jackson said.
While dealers are aware of the desire for Carvana to have a location in Colorado, they aren’t worried.
“I take zero calls on dealers that are concerned about Carmax, Echo Park or Carvana,” Jackson said. “None of (our dealers) will be concerned about the viability of their own store due to Carvana.”
Jackson said that as the company tries to buy market share, the market will become more competitive and benefit consumers.
Jackson said that for the overall market in Colorado “the more the merrier,” adding they will “build traffic on dealer street and all dealers win.”
“Bring Carvana on,” Jackson said.
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August 22, 2020 at 10:00PM
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Carvana car vending machine proposed for Denver location - coloradopolitics.com
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