OLX, a popular online marketplace, has launched OLX Autos, new franchisee-led pre-owned car retail, where consumers can connect easily with dealers and sellers of pre-owned cars. In the initial phase, the franchise stores will operate in Delhi, Chennai, Madurai, Mumbai, Patna, Rudrapur, Jammu, Kolhapur, and Kolkata.
India has a promising pre-owned market, which as per OLX’s estimates, 80% is unorganised. It mainly comprises of small and medium-sized dealers who deal in limited car inventories across geographic pockets which limits their access to consumers, thus impacting their potential to maximise their earnings. The online marketplace points out that there is a lack of standardised experience or a certification process which could vouch for the quality of the car being retailed. OLX was prompted into this segment because of trust issues due to limited inventory, limited working capital and a not so satisfactory end consumer experience.
Through the new franchise-led model, OLX with strengthening its market leadership in the pre-owned car segment, thereby augmenting the mostly untapped and unorganised pre-owned car retail market in India. It will also provide economical inventory funding options to the dealers. According to the company’s press release, dealers will strengthen the OLX Integrated-Omni Channel Store experience where they will be able to retail pre-owned cars across OLX’s online marketplace as well. There would also be benefits such as access to leads from the online marketplace via a digital storefront, and the ability to provide value-added services to customers.
Amit Kumar, Head OLX Autos India, said through the franchise operations they will cater to the growing demands to organise retail of pre-owned cars in India. “We are confident that our move into franchising will bring several entrepreneurs onto our platform,” he said. “Together, we will significantly enhance the customer experience for buyers and sellers,” Kumar said. The network of their franchise stores will work collaboratively with their dealer partners to increase their profitability and improve their operations, which will enable them to offer compelling customer value.
OLX will assist dealers in rebranding their stores for improved customer service with the aesthetics and experience being supplemented by the OLX merchandise. The company statement said each car would undergo an inspection process based on parameters such as the condition of the vehicle, kilometres driven, the authenticity of the car documentation etc.