The internet has expanded from just being a tool to check updates over social media or emails to purchase and sales of goods as well. E-commerce industry is a booming sector and in this sector, the pre-owned vehicle sale, as well as, purchase is a profit making business. In this particular sector, OLX has turned out to be the most preferred portal for pre-owned two-wheelers, according to a study by OLX and Frost and Sullivan, a global consulting firm. The study involved 3,600 people who have used the website who were asked to give a feedback face-to-face. Result of the survey revealed that OLX is three times more preferred than its closest competitor, Quikr.
Every minute six two-wheelers are put on sale on the website and three are sold. The used two-wheeler category is the second largest on OLX and it registers 3.2 million ads annually. In 2016, 1.56 million used two-wheelers were sold through the website and GMV or Gross Merchandise Volume in 2016 was $900 million. Along with two-wheelers, OLX also deals in sale and purchase of electronics, four-wheelers and other movable commodities. Nandini Kelkar, Research Director, Customer Research Practice, Frost & Sullivan - South Asia, Middle East & North Africa, said “Used car and bike ownership fulfils both functional needs (such as long distance travel, easy maneuverability, taking the entire family together, etc.) and emotional needs (such as status, lifestyle upgrade etc.) Through our survey it has been confirmed that awareness about OLX among used 2-Wheeler sellers and buyers in India is three times higher compared to its nearest competitor. Among online buyers of used 2-Wheelers, over 60% completed final purchase via OLX, which is four times higher than the nearest competitor according to the survey."
The two-wheeler industry has been consistently growing in India with a three percent progress in 2016. Almost 16.5 million new two-wheelers were sold in 2016 in the country according to SIAM (Society of Indian Automobile Manufacturers) and the used two-wheeler market is estimated to be 12 million vehicles. OLX sells 13 percent of two-wheelers on an annual basis and at 12 million units, the size of the pre-owned two-wheeler market is four times that of the used car sector. Although the two-wheeler sector is not as mature as the used car sector, it is larger due to its volume in the country. Said Amarjit Singh Batra, CEO, OLX India, “India is predominantly a two-wheeler market but there was no organized platform for buying and selling of two-wheelers before OLX entered the space. OLX pioneered the pre-owned two-wheeler marketplace in India becoming the default destination for selling and buying of motorcycles and scooters in the country. While, one in four pre-owned two-wheelers are listed on OLX, our estimates show that OLX has 75% market share of the online market for pre-owned two-wheelers in India, which signifies our strength in terms of volume and the overall leadership in the space.” The e-commerce platform is expected to grow by 50 percent year-on-year according to Batra. Statistics also revealed that the most preferred brands on the website in the two-wheeler sector are Bajaj, Hero Honda, Yamaha, Royal Enfield and Honda motorcycles not older than five years. The Bajaj Pulsar, Royal Enfield Bullet, Hhonda Activa and Hero Honda Passion are the most popular models sold according to the survey. Commuter motorcycles also lead taking 55 percent of the total share on the website, while premium motorcycles above 250 cc command 10 percent of the share.
OLX competes with Quikr, Cars24, Droom and many other such websites. The platform encourages a C2C or Customer to Customer approach which nullifies the need of a middleman thereby enriching the user experience.