OLX Launches Franchisee Model For Pre-Owned Vehicles

OLX has announced the launch of its new franchisee-led pre-owned car retail offering where dealers and consumers can buy and sell pre-owned cars. The franchise-led model which will be branded as  ‘OLX Autos’ will enable independent dealers to become a part of OLX India’s approved dealer network and is an extension of OLX’s online classifieds marketplace. 

As OLX exclusive partners, the dealers will leverage the OLX Integrated-Omni Channel Store experience where they will be able to retail pre-owned cars across OLX’s massive online marketplace as well. This will also bring along a host of benefits such as access to leads from the online marketplace via a digital storefront and the ability to provide value-added services to customers.

Customers will have access to a larger inventory of verified cars, avail extended warranty services, roadside assistance, and insurance on their pre-owned car purchases. This move is a further extension of OLX’s online platform to the offline format, complementing its already successful company-owned offline stores called OLX CashMyCar.  

As per OLX’s estimates, India’s pre-owned market is 80% unorganized comprising largely of small and medium-sized dealers who deal in limited car inventories across geographic pockets which limits their access to consumers thereby impacting their potential to maximize their earnings. Owing to COVID19, OLX estimates that about 60% plus pre-owned car dealers have unsold inventory and are facing difficulties while availing working capital. 

Talking about the launch of the franchise network in India, Amit Kumar, Head OLX Autos India, said, “With a mission to create an efficient ecosystem of pre-owned car retail in India, we are launching the franchise operations to cater to the ever-growing demands to organize retail of pre-owned cars in the country. With this franchisee model, the goal is to serve customers better in their local communities with a trusted way to buy pre-owned cars through our dealer partners who stand to benefit immensely from this extension of our business. We’ve seen tremendous response already, and we are confident that our move into franchising will bring several enthusiastic and energetic entrepreneurs onto our platform. Together, we will significantly enhance the customer experience for buyers and sellers.” 

To ensure that franchise-led outlets replicate the values and processes of the company, OLX will also assist dealers in rebranding their stores for an improved customer service with the aesthetics and experience being supplemented by OLX merchandise. In order to standardize the offering and present customers with a trustworthy experience of buying pre-owned cars, each certified car will undergo a stringent inspection process based on parameters such as the condition of the car, kilometers driven, the authenticity of the car documentation and more. 

The franchisees will receive training to start and grow their business and access to a full-service model which includes: guidance for bulk procurement, better deals for insurance, branding guidance, and franchise guidance program at regular intervals.