Spinny, a full-stack online to offline used car platform claims to offer a simple and delightful car buying experience and the reasons are many. Headquartered in Gurgaon, Spinny employs over 500 people across 6 cities India. In late 2015, Niraj Singh, the company’s Founder & CEO that happens to be a serial entrepreneur, investor and an IIT-Delhi alumnus laid the foundation of the brand in order to offer a unique car buying experience to the buyers. The brand says that since 2017, with a full-stack platform, Spinny has earned the trust of over 10,000 customers and grown operations across five cities namely Delhi, Gurugram, Noida, Bengaluru, Hyderabad and Pune, with 10 car hubs. We at Express Drives recently had an insightful interaction with Niraj Singh during which he spoke about the company’s plans going forward, what makes Spinny different compared to other used car buying platforms and a lot more.
Express Drives – What is fixed price assurance at Spinny?
Niraj – Fixed price assurance means one price that’s quoted on the website for the car. It is the price that the customers pays which is inclusive of all taxes and benefits such as R C Transfer, One year Spinny warranty and Car Assurance. Spinny uses pricing data of all market transactions and the car’s 200 point inspection report to calculate a fair price that the customers can trust. This way, buyers get the best price for the car without the need to negotiate.
In an industry where negotiation is a norm, we chose to disrupt with a non-negotiable price that’s listed on the spinny.com. This meant exercising strict protocols for a competitive price without compromising the quality of the car. This way, every customer gets the best price for the car without the need to negotiate. The consumer has recognized this effort from us to offer a fair price in one go, reducing the number of interactions and we are observing a positive response.
In this industry, neither the input or the output is fixed; it’s difficult for buyers to gauge the right price. Spinny has addressed this challenge through ‘Fixed Price Assurance’. With fixed price, we’ve been able to reduce the number of interactions – required in these times in the path to purchase. Having entered the preowned car market to earn the trust of customers by offering quality cars and through transparency in transactions, Spinny has already earned the trust of 10,000-plus customers.
Spinny is quite confident about car prices. How have you managed to put forward such a claim of lowest prices?
With the unlock process underway in India, personal mobility is the best and safest mode of travelling for people who are pushed by liquidity crunch, further shifting towards buying pre-owned cars. Buyers do have ambiguity in terms of buying used cars especially the confusion on the price quoted for these cars to be genuine or not. With no major benchmark, it’s difficult for buyers to gauge the price, raising more doubts in their minds. Spinny has addressed this challenge through its ‘Fixed Price Assurance’.
Having entered the pre-owned car market, Spnny has been able to earn the trust of customers by offering quality cars and through transparency in transactions. Backed by a full-stack model, Spinny drives its business for meeting the needs of customers via multiple benefits. For example, there is no salesman margin or dealer commission since Spinny owns the inventory. Thereby, cost benefits are passed on to customers without compromising on car quality. In calculating a fair price that customers can trust, Spinny uses pricing data from all market transactions and the car’s 200-point inspection report. In this way, customers get the best price for a car without negotiating.
What has been the impact of business during lockdown? Both online and offline?
Being a full-stack retail platform, it’s our responsibility to set industry standards in zero contact processes with extra care. The customer recognizes this and we’re witnessing a sharp increase in inquiries of Home Test Drives. We are not advising people to visit our car hubs and are recommending home test drives. In spite of that, within just two weeks of resuming operations last month, Bangalore is already at 70-80% of pre-Covid volumes while Delhi and Gurgaon are at 50%. Expansions to new cities such as Mumbai and Ahmedabad have been postponed to focus on going deeper and perfecting the initiatives that are required to deliver a safe experience. From Bengaluru, Gurgaon, Hyderabad and Delhi, we’ve managed to sell 1200+ cars since lockdown 4.0. Surprisingly, the demand is more or less similar to the pre-Covid days with maximum consumer interest coming in for the Rs 300,000-400,000 and Rs 400,000-600,000 price bracket. While our core focus is on the mass-market cars, however, beyond Rs 800,000 the demand has completely vanished.
Do you expect to see a rise in demand in pre-owned cars post lockdown?
The current demand is a positive sign. During these times personal mobility will be seen as the safest mode of transportation. Due to monetary tightening the demand is moving towards used cars. Basis the queries we receive, most of them are coming from first-time buyers, who earlier relied on public transport/shared cabs. This is a positive sign that people are willing to take the step for personal safety while motivated to resume their working lives. 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. Hence, yes we are optimistic that there is going to be rise in demand for pre-owned cars in the new future and it is our responsibility to raise the standards in safe and easy processes for customers, facilitating quality cars with right pricing and a contactless buying experience from the comfort of homes.
For which car models you have seen the maximum demand during lockdown?
The used car market has seen a rise in the demand for cars in the Rs 4 lakh to Rs 6 lakh bracket. The demand for cars above 8 lakhs is vanishing – which is expected owing to the uncertainties. We foresee this trend to continue with maximum demand from compact sedans, entry-level hatchbacks and premium hatchbacks such as Honda Amaze, Hyundai i10 and Maruti Suzuki Swift.
Also, how many units have you managed to sell during lockdown?
Spinny has been able to sell 1200+ cars since lockdown 4.0, we are on track to be back on pre-covid planned in this month. We’ve had about 50% sales from Bengaluru followed by Delhi NCR and Hyderabad.
What are Spinny’s plans going forward?
There has been increasing enquiries from customers for home test drive of the cars, which is a clear sign of safety being priority for the customers hence; our clear focus is to ensure safety of the customers as well as of our employees. We would be concentrating on home test drives and home deliveries considering that this pandemic has changed consumer behavior for good. We would keep the operations and execution lean – to cater to any new developments that are desired from the market. The sole effort would be to keep raising standards in safety, hygiene and contactless buying experiences, while offering the expected ‘Spinny delight’ to our customers. Expansions to new cities have been postponed to focus on going deeper and perfecting the initiatives that are required to deliver a safe experience.
Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.