In a bid to step up its game in the used cars segment, OLX India plans to open 30 new stores in six cities across the country. The first offline store called Cash My Car was introduced in Gurugram back in June.
Many used auto verticals have introduced offline operations in the last six months.
Truebil introduced an online auction platform for used cars in July. Cars24 has secured $50 million U.S. in funding to enhance its used cars operations; a c-to-b model of buying used cars from customers and selling them to dealers.
OLX India has always been a dominant force in the used cars market, registering 50 percent growth in the segment last year, with a 100 percent increase in its seller base. The company has even boasted a used cars market share of 77 percent.
Entrackr reports that the site now plans to launch 30 new stores by the end of the year. The horizontal has reportedly already hired 200 employees for the stores, which are expected to open in mid-September.
OLX will employ a similar model to Cars24 which recently recieved major funding from Sequoia Capital. The venture capital firm was also one of the first to invest in another Indian used auto marketplace: CarDekho. Cars24 plans to use the funds to propel its ambitions in the c-to-c auto space.
According to Entrackr’s sources, OLX’s push into brick-and-mortar stores is part of a larger strategy to open 50 Cash My Car stores in 12 Indian cities. The company has earmarked close to $15 million U.S. for the rollout. Former Flipkart and Amazon executive Avinash Dargude (LinkedIn profile), who joined OLX last month, is likely to spearhead the company’s plans for Cash My Car.
Cars24 had carved a niche for itself in used cars c-to-b transactions. OLX’s foray into this space along with its scale and long-standing consumer trust could cause serious disruption in the segment.
Cars24 has sold 100,000 used cars in India so far and deals with around 3,000 transactions every month. As it stands, Cars24 is the leading business in India’s c-to-b used cars trade, and will likely remain so until December at least.