Canada Drives

Canada Drives was founded in 2010 by Cody Green after he identified a recurring problem in conventional vehicle dealerships. Customers often selected a vehicle before applying for financing, meaning that a financing rejection could occur only after considerable time had been spent on the sales process. Green developed Canada Drives around the opposite sequence: prospective buyers would first be matched with financing options and then choose a vehicle consistent with their approved borrowing capacity. The company initially operated as an online auto-financing platform. Michael Galpin joined as co-CEO in 2011. In 2014, Canada Drives moved its base from Saskatoon to Vancouver, a relocation intended to place the company closer to the region's expanding technology community. The company also founded Spring Financial in 2014. Canada Drives remained privately held and reportedly chose not to pursue an initial public offering, citing the availability of private-equity funding. By February 2022, it had grown to more than 700 employees. A major funding milestone came in 2019, when Anthos Capital, a U.S. growth-equity firm, invested $100 million. The following year, Canada Drives changed the scope of its business. It moved beyond arranging online vehicle financing and began offering online vehicle retailing and delivery. Customers could browse certified used vehicles, arrange transactions remotely, receive vehicles through delivery, sell cars to Canada Drives, or trade them in. The retail model sought to make the vehicle transaction more digitally integrated and convenient, while preserving the financing capability that had formed the company's original business. Canada Drives expanded its operations into Ontario, Alberta, British Columbia, and Saskatchewan. Its growth was accompanied by recognition in Canadian business and technology rankings. It was placed first on the Canadian Business Profit 500 list in 2016 based on reported five-year revenue growth, and it appeared on the Deloitte Technology Fast 500 list in multiple years from 2016 through 2021. Deloitte also recognized the company as one of Canada's Best Managed Companies in 2019 and 2020 and as an Enterprise Fast 15 winner in 2021. Cody Green received additional recognition, including inclusion in BNN Bloomberg's 2017 Canada’s Top 40 Under 40 list, a Business in Vancouver Forty Under 40 honor, and an Ernst & Young Entrepreneur of the Year award in 2016. The company continued raising capital during the retail phase. Sukhinder Singh Cassidy joined the board in 2021, when Honor Ventures led a $100 million Canadian Series B financing. In 2022, goeasy Ltd. made a reported $40 million minority equity investment. Canada Drives also became an official partner of the Canadian Football League, increasing its public-facing brand presence. The retail strategy did not continue indefinitely. On March 21, 2023, Canada Drives announced a restructuring that would end online vehicle retailing and delivery and return the business to online auto financing. The company filed for and obtained creditor protection under the Companies' Creditors Arrangement Act pursuant to an initial order of the Supreme Court of British Columbia. The restructuring reportedly involved the dismissal of 95 percent of its information-technology staff. The available source material does not provide a definitive account of the brand's subsequent ownership, operating condition, or final restructuring outcome.

• 2023

  Retail restructuring and creditor protection

  [1]Canada Drivesen.wikipedia.org

  Canada Drives ended online vehicle retailing and delivery, returned to online auto financing, and obtained creditor protection under the Companies' Creditors Arrangement Act.

• 2022

  goeasy minority investment

  [1]Canada Drivesen.wikipedia.org

  goeasy Ltd. made a reported $40 million minority equity investment.

• 2021

  Series B financing and board appointment

  [1]Canada Drivesen.wikipedia.org

  Honor Ventures led a $100 million Canadian Series B financing, and Sukhinder Singh Cassidy joined the board.

• 2020

  Launch of online vehicle retailing and delivery

  [1]Canada Drivesen.wikipedia.org

  Canada Drives expanded from online auto financing into online vehicle sales and delivery.

• 2019

  Anthos Capital investment

  [1]Canada Drivesen.wikipedia.org

  Anthos Capital invested $100 million in Canada Drives.

• 2016

  Recognition as Canada's fastest-growing company

  [1]Canada Drivesen.wikipedia.org

  Canada Drives ranked first on the Canadian Business Profit 500 list based on reported five-year revenue growth.

• 2014

  Headquarters move to Vancouver

  [1]Canada Drivesen.wikipedia.org

  Canada Drives moved from Saskatoon to Vancouver and founded Spring Financial.

• 2011

  Michael Galpin joins the company

  [1]Canada Drivesen.wikipedia.org

  Michael Galpin joined Canada Drives as co-CEO.

• 2010

  Canada Drives is founded

  [1]Canada Drivesen.wikipedia.org

  Cody Green founded Canada Drives to improve the vehicle-buying process by arranging financing before customers selected a vehicle.

A technology-enabled Canadian automotive platform designed to simplify vehicle financing and, during its retail phase, the end-to-end purchase or sale of used vehicles online.

• Automotive finance · 2010

  Online auto financing

  Canada Drives' original and later restored core offering was an online vehicle-financing service. Its customer journey was designed to establish financing eligibility before a buyer selected a vehicle, addressing the uncertainty created by dealership processes in which financing was often considered only after a purchase decision.

• Used-vehicle retail · 2020

  Certified used vehicles

  During its online-retailing phase, Canada Drives offered certified used vehicles through a digital shopping experience. The model enabled customers to browse inventory online and combine vehicle selection with financing and transaction support.

• Automotive transactions · 2020

  Vehicle selling and trade-ins

  Canada Drives also allowed customers to sell a vehicle to the company or use it as a trade-in during its online vehicle-retailing period. These capabilities broadened the platform from financing and purchase assistance into additional parts of the vehicle transaction.

• Canadian Football League partnership

  Canada

  Canada Drives became an official partner of the Canadian Football League, using a national sports property to increase brand visibility in its home market.

  Source

• 2023

  End online vehicle retailing and return to financingStrategy

  Background

  Canada Drives announced the change while restructuring its operations and seeking protection under the Companies' Creditors Arrangement Act.

  Action taken

  The company ended online vehicle retailing and delivery, returned to its earlier online auto-financing model, and reportedly eliminated 95 percent of its information-technology staff.

  Aftermath

  The company received creditor protection through an initial order of the Supreme Court of British Columbia. The available material does not establish the final outcome of the restructuring.

  Source

• 2020

  Expand from financing into online vehicle retailingProduct launch

  Background

  Canada Drives had originally focused on online vehicle financing and sought to address friction in conventional dealership transactions.

  Action taken

  The company introduced online vehicle retailing and delivery, including certified used vehicles, vehicle sales, trade-ins, and vehicle purchasing.

  Aftermath

  The expansion created a broader digital automotive-retail model operating in several Canadian provinces, but the retail business was later discontinued during a 2023 restructuring.

  Source

1. 1Canada Drivesen.wikipedia.org