Motors Acquires Cazoo, Plans Major Overhaul
Motors, an online platform for used car searches, has taken a significant step by acquiring Cazoo, the tech startup that fell into administration earlier this year. This acquisition, announced today, marks a pivotal moment for both companies, with Motors planning to rejuvenate the Cazoo brand as a mobile-first marketplace.

Motors, an online platform for used car searches, has taken a significant step by acquiring Cazoo, the tech startup that fell into administration earlier this year. This acquisition, announced today, marks a pivotal moment for both companies, with Motors planning to rejuvenate the Cazoo brand as a mobile-first marketplace.
Cazoo, founded by Zoopla entrepreneur Alex Chesterman, quickly gained prominence after its launch in 2018. It became the fastest company in the UK to achieve unicorn status and was twice featured in the top 100 UK startups list. However, despite its early success, Cazoo faced numerous financial challenges and a tough industry landscape, leading to its collapse last month and resulting in hundreds of layoffs.
In a statement made in May, Cazoo admitted it was struggling to find a buyer. Now, Motors has confirmed its acquisition of Cazoo for an undisclosed amount, with plans to transform the brand into a leading mobile-first marketplace.
What is Motors?
Earlier reports by CarDealer in early May revealed that Motors was in discussions to acquire the Cazoo brand, which was previously valued at over £5 million, at a significantly reduced price. Motors began as a consumer website, Motors.co.uk, and was acquired by private equity firms 03 Industries and Novum Capital in 2021. In November 2023, Motors.co.uk rebranded as Motors, providing car dealers with access to multisite advertising for used cars. This platform is supported by a network of sites, including eBay and Gumtree, and now, soon to include Cazoo.
Motors Chief Executive Barry Judge told CarDealer magazine, “This acquisition offers an exciting opportunity for dealers to tap into Cazoo’s awareness and traffic as part of the Motors network. All dealer partners that are live on our Motors MultiSite packages will automatically benefit from exposure on Cazoo, free of charge.”
Cazoo's Mobile Transformation
One of the primary reasons for Cazoo's financial troubles was the high expenses incurred by its offline operations. The company had secured costly leaseholds for its ten ‘customer care centres’ across the UK, including a major £1 million showroom in Wembley, central London.
Earlier this year, Cazoo announced its plans to lease these sites and transition to a marketplace business model to reduce overhead costs. CarDealer reports that Motors will adopt this strategy, launching a new Cazoo app in the coming weeks, followed by a new website featuring over 250,000 used car listings.
A New Chapter for Cazoo
The sale represents the end of a turbulent period for Cazoo. After reporting a loss of £704 million in 2022 and a significant deficit of £544 million in 2021, the startup halted sales at the beginning of this year and started selling off its inventory to reduce cash burn. This move was not well-received by investors. In April, Paul Whitehead, who took over as CEO after Chesterman's departure last January, stepped down from his role.
A month later, Cazoo warned investors that it might go bust if it did not urgently raise capital, which ultimately led to its downfall. Last week, the Cazoo Group disclosed that the board had voted unanimously to wind up the company and appoint voluntary liquidators.
Despite the challenges, Barry Judge remains optimistic about Motors' ability to turn things around. He stated, "Despite its challenges as a business, Cazoo has undoubtedly become a household name with car buyers. We have the expertise and inventory to immediately establish the new Cazoo site as a modern marketplace for used cars."
This acquisition by Motors is seen as a strategic move to leverage Cazoo's established brand recognition and integrate it into a broader network of used car listings, providing a seamless and comprehensive service to car buyers and dealers alike. The coming months will reveal whether this ambitious plan will successfully revitalize the Cazoo brand and restore its market position.