The used car marketplace has seen a lot of changes lately. Some of those changes are reflected in the recent choices in Sequoia investing in Cars24 instead of CarDekho, or CarTrade buying a majority in Shriram Automall, or growth of the new company Spinny.
Sensing a prevailing opportunity in buying cars from users on behalf of dealers, Naspers-owned OLX is beefing up its offline presence via a solid action plan. After opening up maiden offline store – Cash My Car– in Gurugram, the company is opening up 30 new stores across the top 6 cities in India, said two sources aware of the plan.
“The company already has hired about 200 employees for the new business vertical. The new stores will be live by mid-September. OLX had experimented franchise model with its first few stores. But, now it realised merit in working by itself,” reveal sources on the condition of anonymity.
With this new vertical, OLX is directly competing with Cars24. For uninitiated, Cars24 follows a C2B model where it buys cars on behalf of used car dealers. Post-transaction, it allows dealers to make bids on cars. The highest bidder gets the car which it ultimately sells to a customer.
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