OLX Cash My Car – A ‘PRO’ in Pre-Owned Car Market

1. “OLX Cash My Car – A ‘Pro’ In Pre-Owned Car Market” OLX, a household name in Indian pre-owned car market since a decade has become the best and go to service provider for sellers and buyers. With its experience in selling and buying of various second-hand goods owned the market and subsequently made it organized. It was OLX which discovered the latent need of second-hand organized market which has the potential to grow. Similarly, while used car supply and demand have been existing for the longest but the realization of organizing the market gave OLX Cash My Car the first mover advantage. An Economic Times report mentions that the used car market in India grown from INR 385 billion in 2011 to INR 960 billion as of September 2018. OLX launched Cash My Car thoughtfully when the market was ripe, and acceptance of consumers was high for second-hand cars. Here are some important factors which paved the path for the company to take the call: Latent Need of Sellers and Buyers There has been a requirement to organize the second-hand car market. Even though the market had an ample number of local dealers available which were providing the services but none of them doing it right. In fact, there was lack of trust, sellers or buyers’ time was getting consumed more than ever, ROI wasn’t the best or there was no other way to cross check if they could have paid or received a better return on their cars. Therefore, it was time to formulate the process first through online classified which consumers are used to, for example, marriage websites. Though listing of products of cars is a different ballgame altogether when you start providing best of the services it can become a game changer. Unorganized Players The unorganized market was one of the main hindrances which could let the industry grow to its full potential. Approximately unorganized players take up to 53% of the used cars which has a huge opportunity to be grabbed. Nevertheless, OLX assessed the mindset of customers who were involved in the process of buying and selling second-hand cars resulting in the launch of OLX Cash My Car in November 2018. Also, with the only physical presence of local dealers it was restricting the scope of the market for sellers and buyer.

2. Increase in the launch of New Cars every year There has been a spike in the number of cars under various categories thus, the ownership of new cars has reduced from 5-6 years to 4-5 years. Therefore, upgraded options are available for an owner who is looking out to change his or her car. For example, last year there were some 8 to 10 new launches within a range of 4 Lakhs to 27 Lakhs. It makes a lucrative scenario for a player like OLX online classified. Low Standard Process OLX Cash My Car entered the market when it required to improve the standard of procedures. With local dealers, customers had to get the inspection or paperwork done via different parties which made it a tedious job. Thus, customers were getting lost in figuring out such small issues. OLX Cash My Car with its three-step approach won many customers that currently, it boasts about active buyers and sellers in triple digits. Now a seller can book a free car inspection on a call, paperwork is taken care of by the organisation, best valuation of the car is provided and on accepting the offer secure immediate payment is also done. If you are ready with all papers the entire process can be completed in 45 minutes. Usage of Technology Indian population becoming more and more aware of the internet as well as its usage its necessary for the brands to leverage the habit of customers. Without any delay, they infused technology with the latent demand to increase the market size so much so that customers could start buying or selling their cars sitting at any corner of the country. With its demand and supply algorithm, the organisation makes sure to enhance its database which would result in the best Return on Investment for each of its customers. With technology, it has simplified the processes as well – of listing cars, computing right valuation of the product, secure payment feature, online booking of inspection or transfer of ownership on papers. Online-Offline Model OLX Cash My Car in a venture with FCG (a German-based organisation) has moved to a model of online-offline by launching physical outlets which will give them a door to let their customers start experiencing the products too. It plans to expand its market to 40 cities by 2021 with 150 outlets. A few days back they achieved a milestone of a half-century in Bandra region of Mumbai. OLX Cash My Car’s contributes 25% to OLX bottom line which would grow in coming years as well.