Chicago Tribune (Sunday)

Carvana’s new Root partnershi­p to offer insurance with vehicle-buying

- By Mark Williams

Online used-car dealer Carvana is investing $126 million into insurer Root as part of a new partnershi­p in which Root will develop auto insurance programs for Carvana’s online car-buying platform.

The partnershi­p will allow Carvana to offer personaliz­ed insurance quotes as part of the car-buying experience, Root said. At the same time, it will allow Root add to customers at attractive costs.

“This partnershi­p further elevates the Carvana experience by integratin­g insurance alongside car purchasing and financing decisions,” Root CEO Alex Timm said in a statement. “This integrated solution will give Root exclusive access to a scaled and growing channel of prospectiv­e customers at the important insurance decision point of buying a car.”

Carvana CEO Ernie Garcia welcomed the partnershi­p.

“In Root, we have found a partner that shares our customer focus and technology-driven approach to delivering exceptiona­l customer experience­s. We are excited to build on the success of our existing partnershi­p by creating a unique, integrated solution,” Garcia said in a news release.

Under the terms of deal, the investment can ultimately be converted into shares that would give Carvana a 5% stake in Root.

The deal didn’t do anything for Root’s struggling stock price.

Root’s stock fell after the company posted results for its second quarter that came in below analyst expectatio­ns.

Young public companies typically aren’t profitable, but Root’s losses for the quarter were worse than expected.

 ?? VIEWIMAGE ?? The Root app tracks speed, rapid accelerati­on, hard stops and whether drivers are fussing with their phone.
VIEWIMAGE The Root app tracks speed, rapid accelerati­on, hard stops and whether drivers are fussing with their phone.

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