Carvana Co (NYSE: CVNA) stock rose over 8.7% driven by the news of their Mark Cuban-Backed Car360 acquisition. With this move, the group intends to offer the best technology to the customer so that they can make one of the largest purchase decisions of their life with transparency and confidence. Car360 team would add even more entrepreneurial strength in computer vision, AR and app based photo capture. This technology unlocks a number of exciting capabilities that would further boost their mission to change the way people buy cars.
Car360 at one point became the No. 1 downloaded app on the Apple App Store with more than 20 million downloads. In 2013, their app caught the attention of Mark Cuban on Shark Tank, leading to an initial investment that eventually increased as part of a $3.55 million Series A financing round for Car360 in 2017.
Carvan also showed a rapid growth in sales through their website and as of year ended December 31, 2017 , the number of vehicles they sold to retail customers surged by 135.9% to 44,252 , against the 18,761 in the year ended December 31, 2016 . During the year ended December 31, 2016 , their unit sales grew by 187.6% to 18,761 , as compared to 6,523 in the year ended December 31, 2015 .
The group’s largest source of revenue, used vehicle sales, reached $796.9 million and $342.0 million during the years ended December 31, 2017 and December 31, 2016 , respectively. They continue to expand to new markets while boost their penetration in existing ones. The group sees used vehicle sales to increase as they increase retail units sold.
They generate gross profit on used vehicle sales from the difference between the retail selling price of the vehicle and our cost of sales associated with acquiring the vehicle and preparing it for sale. Wholesale vehicle sales roseby $18.4 million to $28.5 million during the year ended December 31, 2017 , against $10.2 million during the year ended December 31, 2016 .