May. 13 at 4:27 PM
$ROOT
The
$CVNA deal with ROOT ends in October.
How much will ROOT crash if they get dumped?
Reasons to dump them:
1. Root only operates in 36 states and has only added an average of 1 state a year since IPO, despite claims they would be in all 50 states by MANY missed dates. Why should CVNA limit their commission income by "embedding" an insurer that can't serve every state?
2. It's business, and nobody is more ruthless than a used car dealer. No reason Garcia shouldn't shop the deal to every major insurance company and pick the one, or several that will pay them the most commissions and up-front incentives.
3. Better bet Garcia won't take "warrants worth billions" this time as the sweetener to sign a deal. The ROOT warrants are now virtually worthless, and root has lost about 75$ of their cash investment in ROOT.
4. Tooties, don't say the "legacy" guys can't "embed". Every dinky used car dealer on the motor mile offers insurance and financing and gets a commission.
Thoughts?
