Carvana (NYSE: CVNA) and Upstart (NASDAQ: UPST) both initially dazzled investors with their disruptive dreams. Carvana, which is best known for its "car vending machine" towers, challenged traditional used car dealerships with an e-commerce platform that enabled customers to easily secure financing, buy vehicles, and sell them online. Its non-negotiable prices eliminated the need to deal with salespeople, and it streamlined the entire financing process with quick online approvals.

Upstart challenged traditional credit reporting agencies by analyzing non-traditional data like a person's education, GPA, standardized test scores, and work history to help banks, credit unions, and auto dealerships approve loans. That approach enabled lenders to serve a much broader range of customers with limited credit histories.

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Source Fool.com