Lithia’s digital platform Driveway is expected to grow rapidly over the next five years
While the largest part of Lithia Motors Inc.’s growth strategy lies in its acquisition ambitions, a second strong one is the rapid expansion of its digital platform, Driveway.
By the time Lithia’s five-year plan comes to fruition, CEO Bryan DeBoer predicts Driveway will generate $ 9 billion in revenue, roughly three-quarters of what the entire company did in 2019 and 2020 each.
With the goal of creating a true nationwide retail network, the ability to effectively sell and purchase vehicles online alleviates the need to have a store in every city while addressing a critical issue for consumers. consumers who dislike or dislike traditional auto sales. practices. Profits from online sales, DeBoer said, help fund physical acquisitions.
“The two strategies must work together,” he said. “Without the infrastructure, Driveway is not functioning, and without Driveway, we would not have had the capital to generate shareholder value.”
DeBoer aims to have a dealer within 100 miles of every American consumer. Combined with Driveway, Lithia would then be able to serve the whole country and would not have to buy more stores to continue to grow.
The foundation of Driveway was paved with a series of strategic actions in 2017 and 2018.
In tech-pioneering Pittsburgh, home to Argo AI and other automated driving experiences, Lithia acquired Baierl Auto Group in 2017 and added eight Daytime automobile dealers in early 2018.
Next, Lithia hired George Hines, a digital commerce executive and former consultant, as the chief innovation and technology leader.