Beepi

Beepi raised $149M to build a peer-to-peer used car marketplace. The company would inspect cars, list them online, and handle the transaction. But the operational costs were staggering: inspectors in every market, car storage, delivery logistics, and a 60-day money-back guarantee that generated returns. At its peak, Beepi was burning $7M/month with offices in Silicon Valley's most expensive neighborhoods. Executive spending was reportedly lavish, including $10K/month for a CEO dog walker. The company tried to sell to Fair.com and DGDG but deals fell through, and Beepi shut down in 2017. The lesson: physical marketplace businesses require discipline on operational costs that pure-digital founders often lack.