Online classifieds platform OLX has launched physical stores called “Cash My Car” for the sale of second-hand cars in a joint venture with German startup Frontier Car Group. Frontier is backed by the OLX Group.
Olx said that 27 Cash My Car stores were already operational in Delhi NCR (including Noida, Gurgaon, Ghaziabad, and Faridabad) Bangalore, Mumbai, Hyderabad, Pune, Chennai. It plans to expand to 150 stores in 40 cities by the end of 2021.
OLX claims to have 1,000 active buyers on the platform, and expects rapid growth. It claims that ‘a few thousand’ customers have sold cars on the platform. When asked about how the platform will be monetized, OLX India VP Amit Kumar, who also heads OLX Cash My Car, said that the company is evaluating those options, without mentioning any specifics. He said it would expand to other cities based on the car density per capita and projected growth, which “typically translates to the top Tier-1 and Tier-2 towns.”
How it works
Cash My Car’s process is modeled on FCG’s process —
- An OLX Cash My Car personnel inspects a seller’s car for free after they request an inspection. The car can be inspected at a Cash My Car store or at another location.
- The personnel will check the car’s physical condition and paperwork, after which the car is auctioned online to Cash My Car partners.
- Sujay Tyle, co-founder and CEO of FCG, said that Cash My Car runs ‘live’ auctions, and seller can see the process and bids.
- Once the seller accepts the offer, they will receive the payment and OLX transfers the car, including the car’s registration card and other documents.
- OLX claims that the entire process can be completed in 45 minutes.
OLX is an investor in FCG
Earlier in May, the OLX Group pumped in $89 million in Frontier Car Group. FCG is a second-hand car auction site, and operates largely in developing countries including in India, Nigeria, Mexico, Chile and Pakistan. The tie-up will include technology sharing between the OLX Group and FCG to build more OLX Cash My Car stores.
- 40 million users registered 4.8 million secondhand cars
- 40,000 channel partners (Update: This includes used car dealers, car leasing companies, hotel chains and taxi companies, among others)
- OLX claims 330 million monthly users worldwide
- 15 million items are bought and sold on the OLX app and website every month
- 5,000 employees in over 30 offices worldwide
- 6 billion page views per month
OLX sells items through Avito, dubizzle and letgo among others, which are classifieds platforms in Russia, UAE, and the US respectively. All three are backed by South Africa based internet company Naspers, which is also an investor in the OLX Group.
Edit: We’ve updated the story with responses from OLX.