India’s Online marketplace Olx has triple its revenue in the second-hand cars selling category by doubling its business seller base in 2017.
The automobile category, which comprises of cars and bikes, is the most active section on the mobile platform and accounts for 45% of total user visits. 15,000 cars are up for sale on the app daily and each car obtains an average of above 1000 views. Additionally, in 65% of cases, a week is all it takes to sell a vehicle on the app.
The market size for pre-owned cars in India presently stands at 3.8 Million units and OLX claimed to hold 77% of the market despite competing with CarDekho, CarTrade, Droom, Quikr, etc…. Moreover, OLX currently possesses 85% market share in consumer-to-consumer online trade and presently registers 6 billion page views every month by reaching out well over 4000 cities in India.
2017 saw an increase of 25% in a number of transaction on the online platform, from 2.4 million units sold in 2016 to 3 million units in 2017.
Revenues from pre-owned cars category inflated by three times for FY 17-18 as it got support thanks to an active community of business sellers, the launch of solutions customized to benefit the sellers and buyers’ needs and the implementation of 200 local sales support team over 50 cities.
2017 also saw the number of dealers in the automobile category doubling on the platform. To meet the requirements of its community, OLX invested in dealer connect program – Driveathon, which specializes in assisting dealers online.
OLX also took the initiative of educating car dealers about new trends in the second-hand resale automobile market in 2017. They did so by hosting workshops with specialists in the industry and encouraging the sharing of information about regulations concerned with the automobile sector. Their program was carried out across 20 cities, intended to over 3000 dealers.
OLX now wishes to expand this program to 40 cities in 2018.
Sunny Kataria, Director, Auto Category, OLX India said, “The team is focused on changing the way consumers buy and sell pre-owned cars, using online. 2017 was a rewarding year for OLX in which we evolved our cars category by building robust revenue streams and demonstrating a sustainable business model. Our deep-rooted understanding of the online classifieds places us in a solid position to take the market to greater heights,”.
Additionally, in 2017, OLX witnessed a buyer base growth by 50 percent while it seller base grew by 100 percent in the pre-owned cars category. The cars listed on the app for sale comes from Tier I cities such as Delhi, Mumbai, Bangalore, Chennai, Hyderabad, and Kolkata 55% of the time while Tier II cities make up the remaining 45%.
Finally, OLX is a trading platform present in more than 40 other countries. The company aims at assisting its 330 million of monthly users all over the world to buy and sell whatever they want. The listings can range from household goods, phones, cars and even houses. OLX boasts 4000 employees operating in more than 25 offices across five continents.