Ola has launched a used cars platform called 'Ola Cars', which will allow customers to buy and sell second-hand cars. It will also offer ‘try and buy’ services from home, easy financing with EMI options along with a one-year warranty.
An earlier report had said Ola would launch its used car business from Bengaluru. Ola was to enter the segment with a full-stack model, a person aware of the development told Entrackr.
Ola will now buy cars from people and from the company’s driver-partners and sell them to interested buyers. The ride-hailing platform sees Ola Cars as a complementary business model to its core business.
According to an Autocar report, used cars in India will touch 8.2 million by 2025 compared to 3.8 million in 2021. Meanwhile, P&S Intelligence, a market research firm, has said that the second-hand car market is expected to touch $70.8 billion in 2030 compared to $18.3 billion in 2020.
In India, Ola Cars will compete with established players like CarDekho, Cars24, CarTrade, Droom, and Spinny.
Though the used car market is highly unorganised, organised market players like Droom had recently raised $200 million in a pre-IPO funding round, while another company Spinny went ahead and raised $108 million in Series D funding.
Meanwhile, Ola launched its e-scooters S1 and S1 Pro in August and plans to launch an electric car by 2023. It is also planning to go public in the coming months. Ola raised $500 million in a pre-IPO round from investors Temasek, Warburg Pincus and Bhavish Aggarwal, who is the co-founder of Ola.
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According to reports, the investors have valued Ola at $2.7 billion to $4 billion while it was $5.6 billion in December 2019. In March 2021, the US-based Vanguard Group, an investment firm had pegged Ola’s valuation at $3 billion only.
(Edited by : Kanishka Sarkar)