OLX introduces franchisee model for pre-owned car dealerships

OLX, a digital consumer-to-consumer marketplace, has announced the launch of OLX Autos, its franchisee model for buying and selling pre-owned cars. The company says that the move is aimed at formalising the country’s used car market, 80 percent of which is currently unorganised.

• Independent, second-hand car dealerships can become part of OLX Autos network.
• Retail chain to be launched in Delhi, Mumbai, Kolkata, Chennai and a few other cities to begin with.
• Cars on sale to be certified through a “stringent inspection process”.

What is OLX Autos and how does it work?

OLX already operates online classifieds for used cars. The OLX Autos network is intended to serve as an offline extension to the digital marketplace. Independent, second-hand car dealers can become a part of the physical retail chain, essentially providing a network of ‘OLX Autos’ branded outlets for customers to buy and sell pre-owned vehicles. To begin with, the programme is being launched in a few cities like Delhi, Mumbai, Chennai, Kolkata, Madurai, Patna, Rudrapur, Jammu and Kolhapur.

The OLX Autos network is being developed to complement the firm’s existing OLX CashMyCar chain which, on the contrary, operates on a consumer-to-business model. Company-owned CashMyCar stores provide vehicle owners a platform to sell their cars that are auctioned directly to dealer partners across the country.

What should customers expect from OLX Autos?

OLX’s latest initiative aims to formalise the second-hand car buying process and standardise customer experience across different dealerships. Commenting on the franchise model, Amit Kumar, Head, OLX Autos India, said, “We are launching the franchise operations to cater to the ever-growing demands to organise retail of pre-owned cars in the country. With this model, the goal is to serve customers better in their local communities with a trusted way to buy pre-owned cars through our dealer partners.”

The company claims that the cars on sale through its OLX Autos-branded stores will be certified based on a “stringent inspection process”. Additionally, buyers will have access to extended warranty, roadside assistance and insurance schemes while making their vehicle purchases. 

What is in it for the pre-owned car dealerships?

OLX says that it will provide assistance in inventory funding to the rebranded dealerships. Moreover, OLX Autos stores will also be able to retail cars through the company’s online marketplace. This has the potential to provide them access to a larger demographic and help leverage the rising demand for pre-owned cars brought about by COVID-19-induced changes in customer sentiments.  

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Carmakers to bank on digital sales post COVID-19 lockdown