Like other dealership technology vendors, CarGurus offered discounts to its dealership customers and trimmed spending during the pandemic.
The Cambridge, Mass., vehicle listings company cut bills in half for April and May and said a 20 percent discount will continue into June. The company also added search features on dealerships' inventory pages for those that offer virtual walkarounds, appointments that allow for personal distancing, contactless purchases, and free home delivery and test drives at home.
Sales and revenue fell at dealerships across the U.S. this spring as states and municipalities limited activity to slow the spread of COVID-19. That affected CarGurus, which in April said it would lay off 13 percent of its global work force — which totaled 921 full-time employees as of Dec. 31 — and exit operations in Germany, Italy and Spain. Several top executives are taking temporary pay cuts.
The company lost U.S. dealership customers that pay to subscribe to its services in April, though CEO Langley Steinert said the cancellation rate has stabilized. CarGurus suspended its 2020 financial guidance.