OLA all Set to Enter used Car Retailing Business

Ola is planning to diversify its offering. The Indian ride-hailing major, is almost at the verge of launching a used car retailing business in the city of bengaluru, as stated by 3 individuals, who are well versed with latest details relating to the company's new business line. This would also be the 1st major product launch for the Bengaluru based company, in the last 2 years.

Ola is likely to enter the segment with a full stack model, wherein it would buy cars from individuals as well as the company's driver partners and sell them to buyers after the glitches are removed, stated one of the sources requesting anonymity.

Sources further stated that, Ola has began building a team for the new vertical and it would begin a pilot in Bengaluru by the 2nd half of August. The senior management at Ola, sees it as a complementary business model to its core business-Mobility, stated the 2nd person also requested anonymity, further adding that, the used car business would be called "ola cars".

The move would pit Ola directly against companies such as Spinny, which has been in this segment for years and CarDekho, which forayed into the used car retailing's segment recently. A market, which is expected to grow further. As per the reports, the used cars sold in the nation might soar to 8.2 million in FY25 when compared to 3.8 million cars pre-owned in FY21.

The launch of the used car business by Ola comes at a time, wherein the company's ride hailing business has plateaued as a result of the pandemic. Sources stated that, unlike its cab vertical, the bike as well as auto verticals has actually registered significant growth in the past two years.