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  "documentTitle": "Carvana Co. (CVNA)",
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  "notes": "Uses visual juxtaposition of two similar tow trucks to imply business model failure.",
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      "kind": "callout",
      "text": "Look familiar?",
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      "text": "Being a superficial “tech business” does not insulate Carvana from the harsh economics of the used car industry.",
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      "text": "Just as Carvana was getting off the ground floor in the early 2010s, competitor Beepi was also taking off. While designed as a peer-to-peer used car marketplace, Beepi gave sellers a guaranteed price for their cars, and purchased their cars if it couldn't find a buyer within 30 days. Accordingly, Beepi, like Carvana, assumed significant inventory risk. Beepi inevitably folded in 2017, struggling to find investors to support its high startup costs. While Carvana has since achieved much greater scale, Beepi's fate should be taken as a reminder to investors that the economics of used car buying ultimately prevail in Carvana's business: building an online used auto dealer still requires significant investment in inventory, logistics, inspection and repair capabilities, and most other areas of cost involved in selling used vehicles.",
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      "text": "In a way, however, the business of users cars is as old as cars itself, and it seems that what Beepi was doing was not as defensible as it hoped it would be. Other dealers soon also began offering the same perks, but with a far smaller cost base, since they would already have established, more localised businesses.",
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