The Indian multinational ride-sharing firm has come a long way since its inception. It has completely revolutionized the way India travels. However, as the second-hand car market soared considerably amid the pandemic, the ride-hailing firm decided to enter the used car market and launched its initiative in 25+ cities across India.
Used car sales in India have seen massive growth in the past few years, especially in 2020.
According to Statista, the pre-owned car market size was more than 4.4 million units in Financial Year 2020, in India, which was bigger than the size of the new car market in the same period.
What Challenges did the ride-hailing firm faced?
Here are the major challenges they faced to enter the used car market.
They needed to set up a CapEx heavy studio to shoot and edit car images for cataloging in every city to meet their requirements. This was the major challenge for the platform.
Since they were just starting out building physical studios was inevitably important but at the same time highly expensive and time-consuming.
- The timeline for setting up a turntable studio is between two to three months, which could delay their launch remarkably.
- Each turntable studio costs about 25-30 lakh to set up and maintenance costs, which is highly expensive for any car dealership to set up in each city.
- This studio setup invites recurring costs of professional photographers and field workers to oversee the operations on the ground.