Beepi is a textbook case of a startup with a good idea — a marketplace for people to sell and buy used cars, which would be vetted, processed and delivered to the new owner by Beepi, bypassing the costly overhead and commission structure of car dealerships. And there was some solid execution — strong customer service was a big selling point. But ultimately the company was run badly.

It had been valued as high as $560 million in previous rounds of funding, after raising money from 35 investors, including Yuri Milner, Comerica, Redpoint, Foundation Capital, Sherpa Capital and Fabrice Grinda.

But Beepi, a source tells us, was run with the wrong priorities. One ex-employee said Beepi was burning through around $7 million a month when it had its peak of 300 employees (before laying off 200 in December as part of its bid to sell to Fair.com).