Related Party Transactions

12 Months Ended

Dec. 31, 2021

Related Party Transactions [Abstract]

Related Party Transactions

Related Party Transactions

    Transactions with USAA

    USAA is a large stockholder in the Company and was the Company’s most significant affinity marketing partner. At the time that the Company entered into arrangements with USAA to operate its Auto Buying Program, USAA met the definition of a related party. In February 2020, the Company entered into a short-term agreement to extend its partnership with USAA Federal Savings Bank (“USAA FSB”) to continue to power the USAA Car Buying Service through September 30, 2020. USAA FSB paid the Company a $20 million transition services fee that was earned over the term of the agreement. Revenue share from USAA FSB to the Company remained the same as it was under the previous agreement except that amounts earned after March 1, 2020 were settled net of the transaction service fee.

At December 31, 2021 and December 31, 2020 the Company had no amounts due to or from USAA. The Company recognized net revenue of $9.3 million for the year ended December 31, 2020 related to the transition services fee. The Company

recorded sales and marketing expense of $1.9 million and $23.2 million for the years ended December 31, 2020 and 2019, respectively, related to service arrangements entered into with USAA.

    Transactions with Accu-Trade

    During the first quarter of 2019, the Company became a 20% owner of Accu-Trade and accounts for the investment using the equity method, as the Company has significant influence over the investee. The Company had amounts due to Accu-Trade at December 31, 2021 and 2020 of $1.1 million and $0.9 million, respectively. The Company recognized contra-revenue of $1.0 million, $1.2 million, and $1.2 million and cost of revenue of $5.4 million, $1.7 million, and $1.0 million, during the years ended December 31, 2021, 2020, and 2019, respectively, related to a software and data licensing agreement entered into with Accu-Trade.