OLX, the pre-owned cars major, has launched franchisee-led car retail, where dealers and consumers can buy and sell pre-owned cars. “The model, branded as OLX Autos, will enable independent dealers to become a part of OLX India’s approved dealer network, and is an extension of OLX’s online classifieds marketplace,” it said in a statement. This step is an extension of OLX’s online platform to the offline format, complementing its existing offline stores called OLX CashMyCar. Amit Kumar, the head OLX Autos India, said that one of the aims of the initiative is to enhance the element of trust amongst pre-owned car dealers and consumers by bringing them together in trustworthy retail environment. “As OLX exclusive partners, dealers will be able to leverage the OLX Integrated-Omni Channel Store experience and will be able to retail pre-owned cars across OLX’s online marketplace as well,” Kumar said.
Customers, he added, will have access to a larger inventory of verified cars, avail extended warranty services, roadside assistance and insurance on their pre-owned car purchases. According to estimates by OLX, India’s pre-owned market is about 80% unorganised comprising largely of small and medium sized dealers who deal in limited car inventories and across geographic pockets, which limits their access to consumers thereby impacting their potential to maximise their earnings. “Owing to the Covid-19 lockdown, OLX estimates that about 60% pre-owned car dealers have unsold inventory,” Kumar said. “With this franchisee 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.” OLX will also assist dealers in rebranding their stores. First stores will open in Delhi, Chennai, Madurai, Mumbai, Patna, Rudrapur, Jammu, Kolhapur and Kolkata.
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