RumbleON Inc (RMBL)

History and Background

RumbleOn, Inc. was founded in 2013. It operates as an e-commerce platform for buying, selling, trading, and financing new and used vehicles. It went public in 2017 and has expanded through acquisitions and strategic partnerships.

Core Business Areas

• E-Commerce Platform: Facilitates online transactions for powersports vehicles (motorcycles, ATVs, etc.) and other vehicles, connecting buyers and sellers. Provides a marketplace for new and used vehicles.
• Finance and Insurance: Offers financing options, warranties, and insurance products to customers through its platform.
• Vehicle Logistics: Provides transportation and logistics services for vehicles bought and sold through the platform.

Leadership and Structure

The leadership team includes key executives in areas such as CEO, CFO, and operations. The organizational structure is departmental, with divisions focusing on sales, technology, finance, and marketing. Marshall Chesrown is the current CEO.

Key Offerings

• Powersports Vehicles: Sales of new and used motorcycles, ATVs, and other recreational vehicles. RumbleON aims to increase market share in powersports through online sales and dealer partnerships. Competitors include publicly traded automotive retailers like AutoNation (AN) and Penske Automotive Group (PAG) which also dabble in powersports and private powersport retailers.
• Automotive Vehicles: Sales of used automobiles. Used car market competition is heavy with online marketplaces like Carvana (CVNA), Vroom (VRM), and traditional dealerships like AutoNation (AN) and Penske Automotive Group (PAG). Market share is smaller than powersports.
• Finance and Insurance Products: Extended warranties, financing options, and insurance policies offered to customers. These contribute to revenue but specific market share data is not readily available. Many providers compete in this segment.

Industry Overview

The vehicle e-commerce industry is experiencing growth, driven by the increasing adoption of online shopping and digital marketplaces. The powersports segment is also growing as more consumers embrace recreational activities.

Positioning

RumbleON aims to disrupt the traditional vehicle sales model by offering a fully online platform with integrated financing and logistics. It differentiates itself through its focus on powersports and expanding its automotive segment. Its competitive advantage is its online platform providing a seamless transaction experience.

Total Addressable Market (TAM)

The total addressable market for powersports and used vehicles is estimated to be several hundred billion dollars annually. RumbleON is positioned to capture a growing share of this market through its online platform and strategic partnerships.

Key Competitors

• CVNA
• AN
• PAG
• VRM

Competitive Landscape

RumbleON faces intense competition from established players like AutoNation and online marketplaces like Carvana and Vroom. Its advantages include its focus on powersports, but it faces disadvantages in terms of brand recognition and financial resources.

Wholesale Inc.

• Year: 2021
• Acquisition Price (USD millions): 79.1
• Strategic Rationale: Enhanced vehicle sourcing and remarketing capabilities, expanding its presence in the automotive industry.

Historical Growth: RumbleON has experienced periods of growth through acquisitions and expansion of its online platform. However, these growth periods have not translated to sustained profitability.

Future Projections: Future growth projections are highly uncertain due to the company's ongoing struggles with profitability and debt. Analysts' estimates vary significantly.

Recent Initiatives: Recent initiatives have focused on reducing costs, improving operational efficiency, and strengthening partnerships.

RumbleON is a struggling company with a business model that hasn't translated to profitability due to heavy competition and financial strain. It faces significant challenges due to its high debt and losses. The powersports focus and strategic partnerships are positive aspects, but need to be better leveraged. Its ability to navigate its financial difficulties will determine its future prospects.

Data Sources:

• SEC Filings
• Company Press Releases
• Market Research Reports
• Analyst Reports

Disclaimers:

This analysis is based on publicly available information and represents an opinion. Financial data and projections are subject to change. Consult with a financial professional before making investment decisions.