Beepi launched in 2013 as a peer-to-peer marketplace for used cars. Sellers got more money than trading in; buyers got thoroughly inspected cars with a 10-day money-back guarantee. The company raised $149M from Foundation Capital, Redpoint, and SAIC, operating in 16 US metro areas.
Company Data
- Founded: 2013 — Ale Resnik, Owen Savir
- Total Funding: $149 million
- Monthly Burn: ~$7 million at peak
- Failed: February 2017
Used cars are a brutal business. Every car required physical inspection, photography, detailing, and often repairs—costs that added up fast. The commission couldn't cover these expenses. Inventory was unpredictable since Beepi relied on individual sellers. By late 2016, Beepi was losing $7M/month. A planned merger with Fair.com fell through, and assets were sold off.
Key Lesson
In high-touch, low-margin industries, your commission must cover the full cost of service. If every transaction loses money, scale only makes it worse.