Cars.com Inc. (CARS): History, Ownership, Mission, How It Works & Makes Money

Are you in the market for a new or used car and looking for a reliable platform to guide your decision-making? Since 1998, Cars.com Inc. (CARS) has been a leading digital automotive marketplace, connecting buyers and sellers with an array of tools and resources. With a mission to simplify everything about buying and selling cars, how exactly does Cars.com work and generate revenue, and what is its history? Keep reading to discover the ins and outs of this audience-driven technology company, its ownership structure, and its impact on the automotive industry, especially considering its reported full year 2024 revenue of $719 million and adjusted EBITDA of $210 million.

Cars.com Inc. (CARS) History

Cars.com Inc. Founding Timeline

Year established

The company was officially established in 1998.

Original location

Its original location was in Chicago, Illinois.

Founding team members

It was founded by a consortium of newspaper companies.

Initial capital/funding

The initial funding came from the investment of the founding newspaper companies, though the specific amount is not publicly detailed.

Cars.com Inc. Evolution Milestones

Cars.com Inc. Transformative Moments

• Transition to Digital Marketplace:

  Cars.com's evolution from a newspaper consortium's online classifieds section to a comprehensive digital marketplace marked a significant shift. This involved embracing advanced search technologies, detailed vehicle information, and customer reviews to enhance user experience.

• Strategic Acquisitions:

  The acquisitions of Dealer Inspire in 2020 and Credit IQ in 2021 were pivotal in transforming Cars.com into a full-service digital solution provider for the automotive industry. Dealer Inspire brought cutting-edge website technology and marketing solutions, while Credit IQ integrated financing options directly into the platform.

• Focus on Digital Solutions:

  A key transformative decision was focusing on providing end-to-end digital solutions. These solutions include everything from online car listings and virtual tours to digital financing and online checkout processes, all aimed at modernizing the car buying experience.

• Shift to a consumer-centric approach:

  The shift involved prioritizing user experience through detailed vehicle information, customer reviews, and advanced search technologies. This strategy aimed to build trust and transparency, which are vital in the car buying process.

To gain more insights into the financial aspects of the company, you might find this resource helpful: Breaking Down Cars.com Inc. (CARS) Financial Health: Key Insights for Investors

Cars.com Inc. (CARS) Ownership Structure

Cars.com Inc. operates with a corporate ownership structure, where a diverse group of shareholders, including institutional investors, individual shareholders, and company insiders, hold stakes in the company.

Cars.com Inc.'s Current Status

Cars.com Inc. is a publicly traded company, meaning its shares are available for purchase by the general public on the stock market. This allows the company to raise capital through the issuance of stock and provides liquidity for investors.

Cars.com Inc.'s Ownership Breakdown

The ownership of Cars.com Inc. is distributed among various shareholders. Here is a breakdown:

Cars.com Inc.'s Leadership

Cars.com Inc. is guided by a team of experienced leaders who oversee the company's strategy and operations. As of April 2025, key members of the leadership team include:

• Alex Vetter: President and Chief Executive Officer
• Sonia Jain: Chief Financial Officer
• Brooke Burd: Executive Vice President and Chief Human Resources Officer

For more detailed insights into investor profiles and their rationale, check out: Exploring Cars.com Inc. (CARS) Investor Profile: Who’s Buying and Why?

Cars.com Inc. (CARS) Mission and Values

Cars.com Inc. aims to create a comprehensive and user-friendly online automotive marketplace, connecting buyers and sellers with valuable resources and information. The company is guided by a set of core values that emphasize innovation, customer satisfaction, and integrity.

Cars.com Inc.'s Core Purpose

Official mission statement

Cars.com Inc.'s mission statement is: 'To empower shoppers with the data, resources and digital tools needed to make informed decisions – connecting them with the local dealers best suited to serve them.'

• Cars.com strives to provide comprehensive data to help car shoppers make well-informed decisions.
• The company aims to offer a variety of resources and digital tools to facilitate the car shopping process.
• Cars.com seeks to connect shoppers with local dealers who can best meet their needs.

Vision statement

Cars.com Inc.'s vision statement is to build the future of car shopping, a one-stop shop where people can find, finance, and fulfill all their automotive needs.

• Cars.com aspires to create a seamless and integrated car shopping experience.
• The company aims to be the go-to destination for all automotive-related needs.
• Cars.com envisions a future where car shopping is easy, efficient, and enjoyable for consumers.

Company slogan/tagline

Cars.com Inc.'s tagline is: 'Find Your Everything.'

• This tagline reflects the company's commitment to being a comprehensive resource for car shoppers.
• It suggests that Cars.com offers a wide range of options and solutions to meet diverse needs.
• The tagline aims to convey the idea that consumers can find everything they need for their car shopping journey on Cars.com.

To gain more insights into the company's financial performance, you can explore: Breaking Down Cars.com Inc. (CARS) Financial Health: Key Insights for Investors

Cars.com Inc. (CARS) How It Works

Cars.com Inc. operates as a digital marketplace connecting car shoppers with sellers, providing comprehensive information, tools, and services to facilitate informed purchasing decisions.

Cars.com Inc.'s Product/Service Portfolio

Cars.com Inc.'s Operational Framework

Cars.com Inc.'s operational framework revolves around creating a comprehensive and user-friendly online platform that connects car shoppers with sellers. The company focuses on:

• Content Creation and Management: Developing and curating high-quality editorial content, including car reviews, buying guides, and comparison tests, to inform and educate car shoppers.
• Data Aggregation and Analysis: Collecting and analyzing data on car listings, pricing trends, and consumer behavior to provide valuable insights to both car shoppers and sellers.
• Technology Development and Maintenance: Investing in technology to enhance the user experience, improve search functionality, and develop new features and services.
• Sales and Marketing: Promoting the Cars.com platform to car shoppers and sellers through various marketing channels, including online advertising, social media, and public relations.
• Customer Support: Providing customer support to both car shoppers and sellers to address their questions and concerns.

Cars.com Inc.'s Strategic Advantages

Cars.com Inc. maintains several strategic advantages that contribute to its market success:

• Brand Recognition and Reputation: Cars.com has established a strong brand reputation as a trusted source of information and a reliable platform for car shopping.
• Extensive Network of Dealerships: The company has cultivated a large network of dealership partners, providing a wide selection of vehicles for car shoppers to choose from.
• Comprehensive Data and Analytics: Cars.com leverages its extensive data and analytics capabilities to provide valuable insights to both car shoppers and sellers.
• User-Friendly Platform: The Cars.com platform is designed to be user-friendly and intuitive, making it easy for car shoppers to find the information they need.
• Mobile-First Approach: Cars.com has invested heavily in its mobile app, recognizing the increasing importance of mobile devices in the car shopping process.

To gain more insights into the company's guiding principles, check out: Mission Statement, Vision, & Core Values of Cars.com Inc. (CARS).

Cars.com Inc. (CARS) How It Makes Money

The company primarily generates revenue by connecting car buyers with sellers through its online platform, offering a marketplace for new and used vehicles, as well as providing various advertising and data solutions to automotive dealers and manufacturers.

Revenue Breakdown

Business Economics

The company operates with a business model centered on facilitating transactions within the automotive industry. Key aspects of its business economics include:

• Marketplace Revenue: This is derived from listing fees charged to dealers for showcasing their vehicles on the platform. The more vehicles listed and the higher the platform traffic, the greater the revenue.
• Digital Solutions and Services: Revenue is earned by providing digital advertising solutions, website services, and other tools that help dealers manage their online presence and connect with potential buyers.
• Operating Leverage: The company benefits from operating leverage as it scales. The cost of maintaining the platform does not increase linearly with revenue, allowing for higher profitability as user engagement and transaction volumes grow.
• Data and Analytics: Leveraging the vast amount of data collected on car buyer behavior, the company offers analytics and insights to dealers and manufacturers, creating an additional revenue stream.

Financial Performance

The company's financial performance can be gauged through the following metrics:

• Revenue Growth: For the fiscal year 2024, the company reported revenue of $666 million, reflecting a 6% increase year-over-year. This growth is attributed to gains in both marketplace and digital solutions segments.
• Gross Profit Margin: The gross profit margin stood at approximately 90% in 2024, indicating a high level of efficiency in its core operations.
• Net Income: The company’s net income for 2024 was $34.3 million, compared to a net loss in the previous year.
• Adjusted EBITDA: The adjusted EBITDA for 2024 was $193.5 million, showcasing the company's operational profitability.
• Liquidity and Debt: As of December 31, 2024, the company had cash and cash equivalents of $79.2 million and total debt of $446.2 million.

To gain more insights into the company's financial well-being, check this out: Breaking Down Cars.com Inc. (CARS) Financial Health: Key Insights for Investors

Cars.com Inc. (CARS) Market Position & Future Outlook

Cars.com Inc. is strategically positioned to capitalize on the evolving automotive marketplace, leveraging its digital platform to connect buyers and sellers. The company's future outlook hinges on its ability to innovate and adapt to changing consumer preferences and technological advancements.

Competitive Landscape

The automotive marketplace is competitive, with several key players vying for market share. As of 2024, the competitive landscape is as follows:

Opportunities & Challenges

Cars.com Inc. faces both opportunities and risks that will shape its future performance:

Industry Position

Cars.com Inc. holds a significant position in the online automotive marketplace, characterized by:

• A well-established brand with high recognition among car buyers and sellers.
• A comprehensive platform that offers a wide range of vehicles, reviews, and research tools.
• Strategic partnerships with dealerships and automotive manufacturers.
• Focus on innovation and technology to enhance the customer experience.

For more detailed insights into the company's financial health, you can explore: Breaking Down Cars.com Inc. (CARS) Financial Health: Key Insights for Investors