Motorway, the UK’s fastest-growing used car marketplace, has filed its accounts for the 2023 financial year, showing strong growth and enhanced operational efficiency.
Total sales through the platform rose to £2.2bn, demonstrating significant market share. Revenue in the year reached £60.9 million, a 48% increase from £41.2 million in 2022.
Gross profit also increased by 52%, rising to £54.5 million from £35.9 million the previous year.
Significantly, operating losses decreased sharply to £30.8m in 2023, down from £38.2m in the previous year. Operating margin also improved to -51%, from -93% in 2022.
This reflects strong revenue growth with increased productivity from process and product experience improvements.
Motorway continued to expand its operations during the year by doubling down on its core strengths – continuing to build a robust digital platform, nurturing its growing consumer and car dealer customer base, and its ongoing commitment to product innovation.
Motorway has streamlined its experience for car sellers and dealers through continuous investment in AI-driven valuation and profiling tools, user personalisation, and dealer auction enhancements. This has enabled consumers to sell their car quickly for the best price, and car dealers to acquire the best used car stock efficiently. A focus on last mile logistics, including payment processing and vehicle transport has made the Motorway experience more secure and scalable than ever before.
Tom Leathes, CEO and founder of Motorway, said, “We’re proud to have delivered such strong growth, along with a significant decrease in operating losses.
“This marks an important step in our journey to profitability, and reflects our ongoing commitment to building the very best experience for all our customers. In 2023, we focused heavily on building scalable last-mile infrastructure, including payment support through Motorway Pay, and end-to-end logistics through Motorway Move.
“These innovations enable us to support the entire used car transaction cycle, from a consumer valuing their car, right through to payment being transferred and the vehicle being delivered to the dealer’s forecourt.”
“Motorway’s business model continues to set us apart, particularly in what was a volatile market undergoing fundamental changes in 2023. The used car market in the UK is worth over £100 billion and we firmly believe our unique model is a major competitive differentiator, positioning us strongly to continue growing our market share, and shifting behaviour to better ways of transacting.”
Liz Kistruck, CFO at Motorway, added, “Our latest set of accounts demonstrate impressive growth and momentum. Alongside growing revenue and decreasing operating losses, Motorway remains well funded with significant cash reserves and net assets.
“This financial footing provides us with the stability and flexibility to continue scaling our operations, investing in innovation, and to capitalise on a number of exciting strategic opportunities.”
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