Online used-vehicle retailer Vroom Inc.'s initial public offering in June 2020 arrived at a fortuitous time.
It happened during a pandemic that necessitated more consumers buying vehicles partly or entirely online. As a result, Vroom sold more used cars and trucks and its shares skyrocketed to a record high closing price of nearly $74 in September 2020. Then came 2022, a year in which investors in Vroom and its competitors grew wary of how much cash the companies were still burning through to grow and the net losses they were recording.
In May 2022, Vroom announced plans to scale back. The company appointed COO Tom Shortt — who previously oversaw an e-commerce supply chain strategy at Walmart and held roles at Home Depot and ACCO Brands, among others — to become CEO and lead a long-term business plan that prioritized improving vehicle economics and reducing costs.