TrueCar

TrueCar was originally incorporated under the name "Zag.com Inc." in Delaware in February 2005. Scott Painter and Tom Taira started the business to provide white-label auto-buying programs to affinity groups. The company's initial partner was Capital One in order for its customers to arrange financing, access upfront pricing, and locate inventory online.{{Cite web|title=Capital One, Zag Launch Online Shopping Program DriveOne|url=https://www.fi-magazine.com/314858/capital-one-zag-launch-online-shopping-program-driveone|last=Staff|website=www.fi-magazine.com|access-date=2020-05-27}} Other noted co-founders include Jim Nguyen, Oded Noy, and Bernie Brenner.{{Cite web|url=https://seekingalpha.com/article/2272493-truecar-has-no-profits-but-billion-dollar-valuation|title=TrueCar Has No Profits But Billion Dollar Valuation|date=June 17, 2004|website=Seeking Alpha|access-date=February 21, 2019}}{{Cite web|url=https://www.equitynet.com/c/truecar|title=TRUECar|last=EquityNet|website=EquityNet|access-date=2019-02-22}}

After a year of development, Scott Painter (Chairman) and Tom Taira (President) introduced TrueCar during the Techcrunch's Startup Battlefield in September 2008, launching it as a separate company from Zag.com.{{Cite web|title=Online Auto Pioneers Scott Painter and Tom Taira Launch New Company, TrueCar, at TechCrunch50|url=https://www.businesswire.com/news/home/20080910006517/en/Online-Auto-Pioneers-Scott-Painter-Tom-Taira|date=2008-09-11|website=www.businesswire.com|language=en|access-date=2020-05-27}} TrueCar gathers automotive retail transaction data from thousands of sources in order to enable consumers "to see what's paid" on any vehicle in the US.{{cite web|title=Zag Spins Out TrueCar|url=http://www.socaltech.com/zag_spins_out_truecar/s-0017323.html|author=|date=10 September 2008|publisher=SocialTech.com|accessdate=17 November 2012}}{{cite video|url=http://thisweekin.com/thisweekin-venture-capital/this-week-in-venture-capital-12-with-scott-painter/|title=This Week In Venture Capital #12 With Scott Painter|people=Scott Painter, Mark Suster|publisher=This WeekIn|archiveurl=https://web.archive.org/web/20121115034859/http://thisweekin.com/thisweekin-venture-capital/this-week-in-venture-capital-12-with-scott-painter/|archivedate=2012-11-15|medium=video|url-status=dead}} The two companies merged in 2010.{{Cite web|title=What Happens When the Disrupter Gets Disrupted?|url=https://www.inc.com/magazine/201411/paul-keegan/collision-course-truecar-disrupter-gets-disrupted.html|last=Keegan|first=Paul|date=2014-11-04|website=Inc.com|access-date=2020-05-30}}

File:TrueCar Logo (2019).svg

In January 2011, TrueCar released ClearBook, a used vehicle index that analyzes the used car market in the same way TrueCar did for new cars.{{cite news|author=Jennifer Saranow Schultz|date=15 February 2011|title=ClearBook: A New Online Tool for Judging a Used Car's Worth|work=The New York Times|url=http://wheels.blogs.nytimes.com/2011/02/15/clearbook-a-new-online-tool-for-judging-a-used-cars-worth/|accessdate=17 November 2012}}{{cite web |url=http://evergeek.com/news/3590.aspx |title=TrueCar Announces ClearBook Used Car Pricing Aggregator |author=Shaun Conlin |date=26 October 2010 |publisher=EverGeek |accessdate=17 November 2012 |url-status=dead |archiveurl=https://web.archive.org/web/20140729225939/http://evergeek.com/news/3590.aspx |archivedate=29 July 2014 }} In May 2011, TrueCar acquired News Corp-backed Honk.com, a social car shopping platform.{{cite web|title=TrueCar Acquires News Corp-Backed Automotive Social Network Honk.com|url=https://techcrunch.com/2011/05/03/truecar-acquires-news-corp-backed-automotive-social-network-honk-com/|author=Robin Wauters|date=3 May 2011|publisher=TechCrunch|accessdate=17 November 2012}}

In late 2011, TrueCar launched a television advertising campaign with commercials promoting its services.{{cite news |url=https://www.nytimes.com/2012/02/11/your-money/car-dealers-wince-at-a-site-to-end-sales-haggling.html?pagewanted=all |title=Car Dealers Wince at a Site to End Sales Haggling |author=Tara Siegel Bernard |date=10 February 2012 |work= New York Times |accessdate=17 November 2012}} Shortly thereafter, TrueCar faced backlash from the automotive industry,{{cite web |url=http://www.fi-magazine.com/News/Story/2012/09/TrueCar-Revamps-Pricing-Curve.aspx |title=TrueCar Revamps Pricing Curve |author= |date=6 September 2012 |publisher=F&I and Showroom |accessdate=17 November 2012}} when several state agencies and regulators notified TrueCar that its practices were noncompliant with some state laws.{{cite news |title=The TrueCar Challenge |newspaper=Economist |pages=59 |year=2012 }}{{cite web |url=http://features.blogs.fortune.cnn.com/2012/01/18/truecar-is-running-into-roadblocks/ |title=TrueCar Is Running Into Roadblocks |author=Doron Levin |date=18 January 2012 |publisher=CNNMoney |accessdate=17 November 2012}} In response to those notices, TrueCar overhauled its pricing structure, and moved from a pay-per-sale model to a performance-adjusted subscription model for dealers in some states.{{cite web |url=http://www.fi-magazine.com/Channel/finance/News/Story/2012/01/TrueCar-Launches-Compliance-Strategy.aspx |title=TrueCar Unveils Compliance Strategy |author= |date=17 January 2012 |publisher=F&I and Showroom |accessdate=17 November 2012}}

In August 2011, TrueCar purchased ALG, a company that provides information on future residual values of vehicles, for an estimated $83 million.{{cite news|last=Sawyers|first=Arlena|year=2011|title=Painter's Vision: Sales with No Sales Staff|pages=8|newspaper=Automotive News}} In January 2012, TrueCar announced a three-year, exclusive partnership with Yahoo! for $150 million. TrueCar took over Yahoo's automotive properties and replaced it with their own solution.{{Cite web|title=Yahoo Autos Partners With TrueCar, Brings Transparency To Car Buying|url=https://www.fastcompany.com/1804517/yahoo-autos-partners-truecar-brings-transparency-car-buying|last=Ferenstein|first=Gregory|date=2012-01-03|website=Fast Company|language=en-US|access-date=2020-05-30}}

TrueCar launched the first all-female racing team in 2012, with support from Penske Media Corporation and Dragon Racing.{{cite web|title=Virgin Group Aligns with TrueCar Racing's IndyCar Program, Women's Initiative|url=http://www.autoweek.com/article/20120613/indycar/120619935|author=|date=13 June 2012|publisher=Auto Week|accessdate=17 November 2012}}{{cite web|title=All-women Team Leaves Mark on Grand Prix of Baltimore|url=https://www.baltimoresun.com/2012/09/01/all-women-team-leaves-mark-on-grand-prix-of-baltimore/|author=Yvonne Wenger|date=1 September 2012|work=The Baltimore Sun|access-date=17 November 2012}} In June 2012, The Virgin Group announced its partnership in support of TrueCar's "Women Empowered" initiative.

On May 16, 2014, TrueCar became publicly traded on NASDAQ under the stock ticker symbol TRUE.{{cite web|url=http://www.bigstory.ap.org/article/truecar-jumps-its-1st-day-nasdaq|title=TrueCar jumps in its 1st day on the Nasdaq|date=16 May 2014|publisher=AP|accessdate=7 September 2014}}

In December 2015, Scott Painter stepped down as CEO of TrueCar and was replaced by Chip Perry, the former CEO of AutoTrader.com.{{Cite web|url=https://www.latimes.com/business/autos/la-fi-hy-truecar-quarterly-results-20150806-story.html|title=TrueCar posts big 2nd-quarter loss; CEO Scott Painter to step down|last=Hirsch|first=Jerry|website=Los Angeles Times|access-date=2019-05-14}}{{Cite web|url=https://ir.true.com/press-releases|title=PressReleases|website=TrueCar, Inc.|language=en|access-date=2019-05-14}} Under Perry, TrueCar's network of dealerships grew more than 24 percent quarterly over the prior year, as reported in July 2017.{{Cite news|url=https://www.fool.com/investing/2017/07/17/2-reasons-truecar-inc-is-still-a-buy-after-rising.aspx|title=2 Reasons TrueCar, Inc. Is Still a Buy After Rising 150%|last=Miller|first=Daniel|work=The Motley Fool|access-date=2018-01-26|language=en}}

In 2015, 108 car dealerships sued TrueCar for false advertising of its non-negotiation policy and for violations of the Lanham Act.{{cite web|title=Dealers' lawsuit against TrueCar could head to trial|url=https://www.autonews.com/retail/dealers-lawsuit-against-truecar-could-head-trial|author=Hannah Lutz|date=2019-04-02|access-date=2020-07-04|publisher=Automotive News}}{{cite web|title=Dependable Sales and Service, Inc. et al v. Truecar, Inc.|url=https://dockets.justia.com/docket/new-york/nysdce/1:2015cv01742/439449|date=2015-03-09|access-date=2020-07-04|publisher=Justia}} A federal judge dismissed the lawsuit in July 2019.{{cite web|title=Dependable Sales and Service, Inc. et al v. Truecar, Inc.|url=https://www.pacermonitor.com/public/case/7743928/Dependable_Sales_and_Service,_Inc_et_al_v_Truecar,_Inc|date=2019-07-15|access-date=2020-07-04|publisher=Pacer}} Also in 2019, some investors in TrueCar sued the company for misleading shareholders.{{cite web|title=TrueCar Execs Face Investor Suit Over Partner Site Reboot|url=https://www.law360.com/articles/1145551/truecar-execs-face-investor-suit-over-partner-site-reboot|author=|date=2019-04-02|publisher=LAW360}} Separately, in December 2017, TrueCar and the California New Car Dealers Association settled a lawsuit that the association had brought against TrueCar in 2015.{{cite web|title=TrueCar, California Dealers Association settle lawsuit|url=https://www.autonews.com/article/20171214/RETAIL07/171219814/truecar-california-dealers-association-settle-lawsuit|author=Jamie LaReau|date=2017-12-14|access-date=2020-07-04|publisher=Automotive News}} In its lawsuit, the association had alleged that TrueCar's billing model violated California law. As part of the settlement, TrueCar agreed to modify its billing model in California.

Shortly after disappointing first quarter results in 2019, TrueCar announced the immediate resignations of the accountable senior executives, including CEO Chip Perry, CTO/CPO Tommy McClung, CMO Neeraj Gunsager, and EVP Brian Skutta.{{cite web | title = Expect More Pain for TrueCar After Its CEO Departs | author = Luis Sanchez | publisher = The Motley Fool| date = 2019-06-28 | url = https://www.fool.com/investing/2019/06/28/expect-more-pain-for-truecar-after-its-ceo-departs.aspx}}{{Cite web|title=TrueCar post-Perry: Two gone, reorg set - AIM Group|url=https://aimgroup.com/2019/06/22/truecar-post-perry-two-gone-reorg-set/|last=Spencer|first=Greg|website=aimgroup.com|language=en-US|access-date=2020-05-27}}

In January 2020, the company launched a new brand identity and redesign. In May 2020, TrueCar announced a program focused on active military members{{Cite web|title=TrueCar Expands Military Car Buying Support with Launch of 'TrueCar Military'|url=http://www.globenewswire.com/news-release/2020/05/04/2026777/0/en/TrueCar-Expands-Military-Car-Buying-Support-with-Launch-of-TrueCar-Military.html|date=2020-05-04|website=GlobeNewswire News Room|access-date=2020-05-30}} designed to help offset its loss of the USAA Car Buying Service. In May 2020, TrueCar announced a restructuring of the company, including layoffs of 30% of its workforce.{{Cite web|title=2 factors prompt TrueCar to trim workforce by 30%|url=https://www.autoremarketing.com/retail/2-factors-prompt-truecar-trim-workforce-30-percent|date=2020-05-29|website=Auto Remarketing|language=en|access-date=2020-05-31}}

On June 14, 2023, CEO Michael Darrow resigned after leading the company to four straight years of declining financial results. The company's CFO, Jantoon Reigersman took over as CEO and promptly laid off 24% of the company's employees.{{cite web|title=TrueCar lays off 102 employees, taps new CEO amid restructure|url=https://techcrunch.com/2023/06/14/truecar-lays-off-102-employees-taps-new-ceo-amid-restructure/}}

• Kelley Blue Book
• CarGurus

{{reflist}}

• {{official website|http://www.truecar.com}}

Category:Automotive websites

Category:Companies listed on the Nasdaq

Category:Retail companies established in 2005

Category:Internet properties established in 2005

Category:Used car market