Peer-to-peer car marketplace Beepi is shutting down all operations outside of California, cutting 180 employees in at least 16 markets, and merging its remaining Golden State assets with a new FinTech startup called Fair, TechCrunch reports. The shutdown also leaves the company’s leasing agreement with Ally Financial Inc., in flux.
Ally Chief Executive Jeffery Brown pointed to the bank’s partnership with Beepi in the first quarter, to provide used-leasing for the online buy-sell platform, as an example of that digital growth within auto.
Ally declined to comment at this time.
Beepi launched SmartLease, the company’s used-leasing program, in collaboration with Ally Financial Inc. in April. Ally also become Beepi’s preferred lender in December 2015. Other lenders at the time included up2drive — a division of BMW Bank of North America — and JPMorgan Chase.
The battered startup — which had nearly $150 million in funding — will have just 80 employees remaining, largely at its headquarters in Los Altos, California. Beepi founder Ale Resnik is staying on the team and will continue to work towards Fair’s goals.
“Georg, Scott, and Fedor are auto industry veterans that I deeply admire, and I’m excited to join forces with them to focus on the future of the car-buying industry,” he said in a statement. “Beepi will benefit immeasurably from this partnership.”
