Many businesses came on backfoot with the ongoing Covid-19 pandemic. However, the good part is that the situation seems to be improving now with the market getting its momentum back. Spinny used car platform happens to be one such company that has fought the adverse market conditions and is now back on track. The company has sold over 5,000 used cars last year with the total number clocking over 9,100 units. In order to understand the company’s upcoming plans, business strategies and a lot more including their full-stack used car platform concept, we recently had an interaction with Niraj Singh, Founder & CEO, Spinny. Here are the key takeaways:
Express Drives – What exactly is a full-stack used car platform concept?
Niraj – Full stack means end of end ownership of every step in car buying or selling experience for each customer. Right from the customer’s visit on the website to the test drive to financing options – all processes are owned by us. Hence, our first original pivot was becoming a full-stack platform as we were certain that’s required to deliver a delightful customer experience in an industry with too many variables and trust issues.
We wouldn’t have been able to offer the quality of cars that get selected as Spinny Assured(R) and the benefits to the customer such as no-questions-asked 5-day money-back guarantee, fixed price assurance and 1-year warranty, otherwise. With the changing needs and expectations of the customer, during the course of this pandemic, this full-stack capability allowed us the agility, the control to set industry benchmarks in terms of a contactless, safe and simple car buying and selling experience.
We launched numerous features to make buying a car a completely zero contact experience #WithExtraCare and address liquidity crunch faced during these uncertain times, making owning a car more feasible and more economical than the rental or subscription model.
Spinny 360 – an industry-first feature that offers a 360-degree, detailed view of every Spinny Assured vehicle that’s available in the inventory in each city.
Fixed Price Assurance, a game-changer that negates the need for unnecessary negotiations and going back and forth on price, reducing the number of interactions required for a customer to buy a car.
Spinny BuyBack, a programme that offers a guaranteed future resale value for 6, 12, or 18 months from the time of purchase. The full stack model allowed Spinny to facilitate a simple selling process for people to get the best price for their old car. Sellright by Spinny offers instant online quotes, free doorstep car inspection and instant payment without any middlemen.
What is the total number of used cars sold till date and in lockdown?
Spinny has sold a total of 9,100+ cars in 2020 on the back of expanded network and more customers looking for safe personal transportation despite liquidity issues. Despite the lockdown, we sold more than 2,700 cars till July. In the year 2019, we closed at 5,000 cars and we were able to stay on our pre-covid targets for 2020.
Is there any fixed percentage of value that you are offering under Spinny buyback, if yes, please specify?
On every Spinny Assured car, the customer gets a commitment of future resale value of 6,12 or 18 months of tenure. There isn’t a fixed percentage as the buy back values are calculated basis the car year, make, fuel type and market trends. Buyback makes owning a car a more ecumenical option than rental or subscription and it gives buyers the confidence to the quality of the car.
What is the number of Spinny’s physical dealerships and stores right now in India?
We are present in Noida, Delhi (2 Hubs), Gurgaon, Pune, Hyderabad, Bengaluru, Mumbai, Chennai with Ahmedabad and Kolkata opening soon.
With the ongoing covid scenario, the number of people opting for used cars has gone up for obvious reasons. Once the situation normalises, how do you expect the trend to change?
Car is not just a dream or an excitement anymore, people have got a lifelong lesson that they must have a personal source of mobility to attend any on-demand need. More than 70 percent of used cars are being bought by Indians under the age of 40. While it is difficult for it to project growth numbers in a post-Covid scenario, the company estimates that the used-car category is relatively immune and would keep growing.
While according to the study, the market is set to grow to up to 7.2 million units by 2022, there is a major challenge that needs to be addressed – maintaining trust and transparency with customers. According to a recent survey by consulting firm Deloitte, 77% consumers want to limit the use of public transport, 70% would want to avoid ride-hailing options altogether, and 79% have an intention to own a vehicle.
How is Spinny prepping up to keep the momentum going?
2020 has been a year of extremes and we are gearing up to step into the New Year and go ahead with our expansion plans that were put on hold due to the COVID-19 situation. With momentum and validation of our services from positive customer response, we are convinced of offering a safe experience and we will be scaling our operations by expanding to new cities in 2021. Our top-of-mind concern as we foray into new cities is to maintain and indeed further the quality of our buying and selling experience.
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