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As part of a major cost-cutting strategy to save £200m, Cazoo will be pulling its car subscription service to new subscribers from the end of June 2022.
Cazoo has reported, “over £90m of cash tied up in subscription inventory that will reduce to zero over time as existing subscription cars come back to us and become retail vehicles, increasing our cash balance significantly.”
Concentrating on Used Car Business
Cazoo are focused on concentrating on their used car business, which they believe should be the main focus of their business, in turn, they will also see their workforce cut by 15 percent.
Cazoo acquired the Drover Car Subscription company in December 2020, founded by Felix Leuschner. At the time of acquisition, it was hoped that utilising the Drover platform, Cazoo could expand into the car subscription business.
All of the measures announced by Alex Chesterman are to help secure the firm’s growth in the future.