eBay Acquires Car Auction Site Caramel To Streamline & Simplify The Vehicle Buying Experience
eBay has announced their first acquisition of 2025, buying car auction site Caramel for undisclosed sum to provide streamlined and simplified vehicle buying experience.
eBay Inc. (Nasdaq: EBAY), a global commerce leader that connects millions of sellers and buyers around the world, announced today that it has signed a definitive agreement to acquire Caramel, an end-to-end online automotive transaction solution provider.
Caramel’s innovative technology platform provides a secure and seamless digital transaction experience that handles all of the complexities of a vehicle sale, including paperwork, ownership transfer, financing, transportation and more, whether transacting on Caramel's site or app, through an independent dealer, or via Caramel's multiple marketplace and auction partners.
eBay Motors is the destination for enthusiasts looking to find a huge selection of auto parts and accessories, and this acquisition provides eBay buyers with a safe and trusted online platform to conduct vehicle purchases.
The addition of Caramel will make buying and selling vehicles on eBay more simple than ever, regardless of which US state the vehicle and the buyer are located in.
“eBay’s acquisition of Caramel is about creating trust for vehicle buyers. Buying a car is a big moment. Caramel's platform brings it all into one simple, seamless process: title and identity verification, insurance, financing – even shipping the car to the buyer after purchase,” said Chris Prill, General Manager, eBay Motors.
“With Caramel and eBay combining forces, both buyers and sellers will be able to complete vehicle transactions on eBay with greater peace-of-mind, and Caramel can further establish itself across a myriad of platforms.”
How Does Caramel Work?
In its current form, Caramel acts as a middleman for the transaction - once the price is accepted, Caramel actually buys the car from the seller and then in turn the buyer buys the car from Caramel in order to provide protection on both sides.
Caramel also handles the title transfer and registration, saving the buyer a trip to the DMV.
It will be interesting to see how that service gets incorporated into eBay eventually - will it be included for free on eligible vehicle sales (like the various authentication programs eBay has introduced for sneakers, trading cards, hand bags, watches and jewelry) or will it be an add on service presented to the buyer on the listing (like current functionality for tire installation)?
The move comes as M&A at eBay has slowed in the last year, compared to the first few years with current CEO Jamie Iannone at the helm.
eBay's acquisition of Sneaker Con's authentication business in 2021 and collectible trading card marketplace TCGPlayer in 2022 were both integral to Iannone's "focus vertical enthusiast buyer" strategy, but both have also brought increasing labor challenges as the company grapples with the realities of having in-house physical labor-centric warehouse operations - including the establishment of the first union in eBay history which has lead to multiple NLRB complaints and a protracted contract battle as well as a class action lawsuit alleging the company has violated both Federal and New York Labor Laws.
Liz Morton
eBay also acquired MyFitment in 2022, hoping to leverage the technology to improve the auto parts buying experience on the site - but integration and implementation has been a slow process over the last 2+ years.
Liz Morton
And the 2022 acquisition of NFT marketplace KnownOrigin turned out to be a bust as the crypto art bubble burst, with eBay pulling the plug and winding down the on-chain marketplace last year.
Liz Morton
eBay's 2023 acquisitions were aimed at bolstering counterfeit and IP infringement detection and prevention with Certilogo, an AI-powered technology for digital ID and authentication of fashion brands, and 3PM Shield.
Liz Morton
Interestingly, it appears that 3PM Shield founder Rob Dunkel, who joined eBay after the acquisition, quietly left the company in September.
M&A activity slowed in 2024, with only a single major acquisition as eBay sold their trading card Vault to Collectors/PSA while buying Goldin Auctions - a move which raised additional concerns about potential anticompetitive practices as eBay continues to consolidate their powerful position in the collectibles and trading card market.
Liz Morton
That slower pace of M&A was also likely influenced by the deferred prosecution agreement eBay signed with the Department of Justice after being found criminally liable in connection to the 2019 cyberstalking of journalists Ina and David Steiner of EcommerceBytes by eBay security personnel who commited multiple federal felonies in an effort to shut down reporting that frustrated members of the C-suit and to try to out an anonymous source known as Fidomaster/unsuckEBAY.
The deal hit eBay with a $3 Million fine and enhanced compliance monitoring requirements for 3 years, including a specific focus on M&A.
Liz Morton
The scope of the compliance monitoring, coupled with a historic $59 Million settlement with the DEA, ongoing litigation brought by the EPA, and an FTC petition filed by the Responsible Online Commerce Coalition suggests the Department of Justice and other Federal regulatory bodies may be concerned about a wide variety of business practices, opening eBay's entire operation up to additional scrutiny.
As for the Caramel deal, eBay says closing is subject to satisfaction of customary conditions and is expected to occur in the first quarter of 2025. The acquisition price and further details were not disclosed.
