Bidbus is the infrastructure that enables dealerships to source consumer-owned used cars at scale through competitive private-party auctions. Bidbus runs three weekly auctions where hundreds of dealers compete for vehicles, creating a consistent supply of quality vehicles for dealers and higher payouts for sellers by matching each car to the right demand in real time. Pulse 2.0 interviewed Bidbus co-founder and COO Ellson Chen to gain a deeper understanding of the company.
Ellson Chen’s Background
Could you tell me more about your background? Chen said:
“I got my bachelor’s degree in computer science from UCSD and started my first co-living company (Union Apartment for international students) straight out of college. That first company went through Y Combinator, hit $5 million in annual revenue, and then crashed due to the pandemic. I spent time working on different projects in AI and then joined Bidbus as a co-founder when my company (Animos) offering custom AI solutions merged with theirs.”
Formation Of The Company
How did the idea for the company come together? Chen shared:
“Privately owned vehicles are consistently the best-selling cars on dealership lots, yet they make up a minority of inventory because they are difficult to source reliably. The default alternative is traditional wholesale auctions, but in a B2B environment, dealers keep their best inventory and offload vehicles that are harder to sell.”
“The idea for Bidbus emerged when our CEO helped a friend sell his car. He invited several dealer friends into a group chat and let them bid against one another. The car sold for $8,000 more than expected. Dealers got a clean, desirable vehicle, the seller earned more, and the process was fast and transparent.”
“That moment revealed a clear opportunity: if the right dealers compete on the right consumer-owned cars, both sides win. Bidbus was built to turn that insight into scalable infrastructure.”
Favorite Memory
When asked about his favorite memory at the company so far, Chen reflected:
“What stands out most to me is how fast the team moves. In June, we were selling around 100 cars a month. By December, we were selling over 400. What used to take several auctions now happens in just one—it feels unreal and incredibly exciting.”
Core Products
What are the company’s core products and features? Chen explained:
Bidbus’s core product is its live auction platform, which runs three times a week from 2–4 PM and features fully vetted listings—excluding vehicles over 130,000 miles or with major accidents—to maintain consistent quality for dealers. Sellers are onboarded with clear expectations and market-based reserve prices, giving dealers defined exit strategies while maximizing seller value. This is supported by an internal SDR AI agent framework paired with human sales that manages listing intake, reserve negotiation, and customer support. Machine-learning models generate realistic, up-to-date appraisals to anchor bidding accurately from the start, while an AI research feature helps dealers evaluate each vehicle and set informed buying strategies.
Challenges Faced
Have you faced any challenges in your sector of work recently? Chen acknowledged:
“Balancing fairness on both sides of the marketplace is one of our biggest challenges. We expect sellers to be fully transparent about their vehicles, and in return, we hold dealers to a strict standard—no post-auction haggling based on disclosed information. Enforcing this isn’t always easy, but seller trust comes first. We’ve even banned two of our largest dealers to ensure every seller has a good experience on the platform.”
Evolution Of The Company’s Technology
How has the company’s technology evolved since launching? Chen noted:
“Back in the early days of Bidbus, there was no technology, AI or otherwise. In 2023, we had a website, and that was it. In 2024, we introduced a very basic version of the internal CRM. In 2025, we revamped our whole website, internal CRM, and heavily incorporated AI in all aspects. Now we’re ready to scale, and the sky’s the limit.”
Significant Milestones
What have been some of the company’s most significant milestones? Chen cited:
“We’ve grown roughly 2× each year since launching in 2022. In 2024, we sold 1,243 cars and reached $1 million in revenue while fully bootstrapped. In 2025, we sold over 2,400 cars—nearly doubling year over year. With the launch of our Texas market, we expect to sell more than 5,000 cars in 2026.”
Customer Success Stories
Can you share any specific customer success stories? Chen highlighted:
“We’re always surprised how far people are willing to travel for Bidbus’ services. One customer drove from San Francisco to L.A. to sell their car because we got them an offer $4000 above their local dealers.”
Funding/Revenue
Are you able to discuss funding and/or revenue metrics? Chen revealed:
“We raised our $3.3 million seed round led by Mucker Capital in June 2025. In the six months following the raise, we 4×’d our revenue run rate. With our Texas market off to a strong start, we’re likely preparing for a Series A with healthy growth and disciplined unit economics.”
Total Addressable Market (TAM)
What total addressable market (TAM) size is the company pursuing? Chen assessed:
“We estimate we’re looking at a $23.4 billion market for consumer-owned vehicles in the U.S.”
Differentiation From The Competition
What differentiates the company from its competition? Chen affirmed:
“Bidbus is different because we’re the only C2B (customer to business) car auction. Every other auction is B2B—auctioning cars sourced from fleets, repossessions, and unsold dealership inventory. Dealers know that consumer-owned cars sell more quickly; consumer-owned vehicles sit on their lots for around 15 days while other inventory could go up to 55 days.”
Future Company Goals
What are some of the company’s future goals? Chen concluded:
“We’ve built a stable foundation in California and recently launched our first auction in Texas. Early results are highly promising, and the market is shaping up to be a key proof point that our model can be replicated and scaled nationwide.”
