Ola to Introduce New Platform, Ola Cars, for Customers to Try & Buy Pre-owned Cars
In India, Ola Cars would compete with established players such as CarDekho, Cars24, CarTrade, Droom and Spinny.
Ola has launched a used car platform, called Ola Cars, this will enable the customers to both, buy as well as sell second hand cars. It would also offer, try as well as buy services from home, easy financing with EMI options along with a 1 year warranty.
Ola would now buy cars from individuals and from the company's driver partners and sell them to the interested buyers. The ride-hailing platform views Ola cars as a complementary business model to its core business.
As per the Autocar report, we find used cars in India would touch 8.2 million by 2025 compared to 3.8 million in 2021. Meanwhile, P&S intelligence, a market research firm, has stated that the second hand car market is expected to touch $70 billion in 2030 compared to $18.30 billion in 2020.
In India, Ola Cars would compete with established players such as CarDekho, Cars24, CarTrade, Droom and Spinny.
Though the used car market is highly unorganised, organized market players such as Droom had recently raised $200 million in a Pre-IPO funding round, while another company Spinny went ahead and they raised $108 million in Series D funding.
Meanwhile Ola has launched its e-scooters S1 and S1 Pro in the month of August and it plans to launch an electric car by the year, 2023. It is also planning to go public in the coming months. Ola has raised around $500 million in a pre-IPO round from investors Temasek, Warburg Pincus and Bhavish Aggarwal, who is the co-founder of Ola.
As per the reports, the investors have valued Ola at $2.7 billion to $4 billion, while it was $5.6 billion in the month of December 201. In the month of March, 2021, the US based Vanguard Group; an investment firm had pegged Ola's valuation at $3 billion only.