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Fong estimated the public franchised groups likely increased their digital market share for used vehicles to 13 percent of the market as of the first quarter, up from roughly 9 to 11 percent before. That increase can be explained in part because Carvana and Vroom lost ground in the quarter; he said Carvana in particular dealt with constraints including economic headwinds and inadequate reconditioning capacity.
It’s also partly because of the growth of Lithia Motors Inc.’s Driveway platform, which Fong’s analysis showed gained the most market share of any of the six major public new-vehicle retailers in the first quarter this year compared with the fourth quarter of 2021.
“In certain cases, they have the benefit of doing things in an omnichannel sort of way, which is sort of able to service a larger customer base,” Fong said of the public groups. “Not every customer out there wants a purely digital experience.”
That bodes well for them. Said Fong: “I definitely see the brick-and-mortar guys gaining additional share.”
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