RumbleOn Inc. says it’s ready to rumble on back to the rapid sales growth that, pre-COVID-19, was approaching $1 billion—all via ecommerce—in its third year of fully operating as a buyer and seller of powersport and recreational vehicles.
The online trader of powersport and recreational vehicles like Harley-Davidson motorcycles and Polaris snowmobiles saw its revenue slashed by half last year to $416.43 million from $840.63 million in 2019. But after the pandemic cut deeply into its industry, disrupting supply chains and stifling demand from buyers, RumbleOn figures its online business model of acquiring and distributing pre-owned vehicles is now primed to race ahead of its competition.
“Even as we emerged from COVID restrictions in this country, manufacturers still haven’t been able to ramp production back to normal level, leaving far fewer new vehicles and showrooms,” Marshall Chesrown, chairman and CEO, said on a first-quarter earnings call last week with investment analysts, according to a transcript from Seeking Alpha.
But he added the related good news for RumbleOn: “While this has created significant supply constraints of new inventory across the industry, it has created a strong tailwind, an outstanding opportunity for RumbleOn, particularly with our buy-direct-from-consumers strategy and our new B2B redistribution capabilities through Dealer Direct. Clearly, our business has never been better aligned to realize sustainable and significant margin improvements than today in our short history.”
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