Dealer.com Continues to Grow as Storm Clouds of Change Gather Over the Auto Industry
Friday, November 15, 2019
Dealer.com has long been Vermont's poster child for tech success, despite a series of job reductions that began in August 2017 after the company was bought by Atlanta-based Cox Automotive two years earlier.
The most recent job losses came about two weeks ago when 14 people were let go.
Founded in 1998, Dealer.com builds websites and other digital marketing tools for about 10,000 car dealerships across the country, representing a 60% share of the market. That dominant position got the attention of Cox, a privately held juggernaut with $7 billion in revenue.
Cox bought a company called Dealertrack in October 2015 for $4.2 billion. Dealertrack in turn had purchased Dealer.com in March 2014 for nearly $1 billion, meaning Cox now owned Dealer.com too.
With car buying moving increasingly online, Dealer.com overall has continued to grow, despite the job losses, General Manager Wayne Pastore said in a recent interview. The company has about 1,300 employees today, divided among several locations on Burlington's Pine Street, up from 1,100 employees three years ago.
"More than 60% of all car buying transactions start somewhere online," Pastore said. "As a result, dealers and manufacturers are even more reliant on digital and digital marketing."
Pastore characterized the recent elimination of 14 jobs at Dealer.com as a "shifting of roles" to address management that was top-heavy. He said some of the 14 people who were let go are applying for different jobs within the Pine Street building.
Dealer.com currently has about 30 open positions, according to Pastore. The company's Burlington office is the second largest in the Cox Automotive empire. Only the Atlanta headquarters is bigger, with 3,300 employees.
Read the full Burlington Free Press article.