Introduction
CARS24 is an online used car marketplace that is headquartered in Gurugram, Haryana, India. The CARS24 platform facilitates the transaction and has an offline presence. The Business Model of Cars24 involves its business plan, revenue model, its competitors, SWOT Analysis and many more.
Apart from selling used cars, the company’s services include paperwork such as transferring the car to the name of the new owner which enables end-to-end transactions and offers an online auction platform to businesses looking to sell their pre-owned cars.
Business Plan
Cars24 is a next-generation e-commerce platform for used automobiles (cars and bikes). It is a used car marketplace that is based in Gurugram, Haryana, India.Cars24 can be thought of as a car-related eBay. It is so simple, but it solves every problem that the customer encounters while purchasing.
The platform is designed with a customer-to-business (C2B) model.
Cars24 is, at its core, an online marketplace for buying and selling used cars. Cars24’s business model and the people who are propelling it to new heights. Cars24’s primary target audiences are car owners between the ages of 30 and 50 who live in metros and other major cities and have at least 3-4 years of car ownership experience and their own e-commerce platform.
Cars24 is primarily a used car resale company. The platform’s business model is based on the criteria of purchasing a car from its owner at the most appropriate and competent price in comparison to other alternative car resale services in the neighborhood.
The business model of Cars24 does not end with online bidding, but rather begins there. By making the entire transaction end-to-end, the company works to remove every stone, twig, and rock that stands in the way of a customer’s buying and selling process.
Revenue Model
Cars24 offers buy and sell service of old cars and also free RC transfer. They help us to sell the cars with the best price and also provide instant payment with zero trouble in paper work or delay in the payments.
They also provide financial loans to the businesses to help them to grow faster and also to buy the dream car with a very fast process with their AI and machine learning. Currently they are having 3 product in their financial menu as well,
- Unnati
- Unnati+
- Pre-Owned Cars Loan
Competitors
The tech savvy resale model is gaining a good amount of land as much possible. Here’s the list of some of its competitors:
SWOT Analysis
Strengths
An organization’s capabilities that give it an advantage in increasing and capturing its market share, attracting more customers, and maximizing profits are referred to as its strengths. Following are Cars24’s strengths:
- Online Business: Cars24 provides online services such as online buying and online selling second-hand cars. This kind of business can be easily adaptable in the variable market. The business always has challenges to conquer. For example, in the age of the pandemic, online businesses take huge advantages because their development is not disrupted. Cars24 with an online business still makes a profit and has engagements with their customers that make sure that in the recovered economy age, Cars24 will predominate over the left businesses.
- Financial Services: Financial issues are always taken into consideration when customers have the intention to buy a car. Customers are afraid of complex transparency processes, so Cars24 provides their customers with a 100% digitized process to complete transparency. Besides, if customers do not have enough money to pay for their favourite cars at once, they can pay for them in monthly instalments with a low-interest rate.
- A Vast System: With a vast network of channel partners across the country, Cars24 can easily find the cars customers want and also if customers are bored with face-to-face negotiating 20 or 30 times with customers to sell their old cars, Cars24 can help you to sell in just a blink of an eye. A vast network also helps Cars24 stand a good chance to have access to an abundant source of potential customers.
- Experienced Staff: As a result of the fact that Cars24 has a culture of trust and cooperation, their employees and partners play a pivotal role in their system. Cars24 invests to upgrade their members’ professional qualifications to make sure their customers are served with the best services. Besides, Cars24 also takes care of members’ personal lives.
- Great Fund: With great capital, Cars24’s customers can be guaranteed for their selling cars. Cars24 is a private limited company. Cars24’s share capital is INR 7.00 cr and the total paid-up capital is INR 5.10 cr.
Weaknesses
Whenever a company is recognized with its strengths, there are always going to be some weaknesses as well. Let’s check them out.
- Limited Market: Cars24 mainly focused on India. It has branches in more than 100 cities. According to research, the pre-owned car market is so active. Cars24 should have branches in other countries.
- Difference Between Online Valuation & Post Inspection Price: Cars24 buys and sells cars online, their customers can not have an inspection on their cars before buying, they can only have information which is provided by Cars24 via their website, so customers definitely will have wrong information about the products.
- Negative Feedback From Customers: When it comes to product rating, there are 60% rated 1 start. Most customers are uncomfortable with the way Cars24 evaluates cars and gives their customers prices. It is low from customers’ expectations.
- Seasonal Business: Cars24 does not have substantial profit and is often idle during non-season.
Opportunities
- Trend: People now have the intention to buy pre-owned cars. There are so many reasons why they do that, they do not have to pay some kind of taxes, expenses are less, the quality of secondhand cars has been improved, and so on. Besides, according to research, most people in the world buy a secondhand car with 67% at second-hand stores.
- A Big Source of Old Cars: The number of old cars is increasing. To comply with environmental law, in some countries, they will have to leave cars which are still in good condition. Businesses can make full use of it by organizing car resale segments.
- Developed Transportation: Nowadays, it is easier for people to bring a car from one country to another. With a source of cheap cars, a business can make a great fortune if businesses know how to manage everything.
- Pandemic: In the age of pandemic, people may not be able to go to the physical store to inspect cars or have face-to-face negotiations with customers to sell their cars. In this situation, Cars24 will predominate the left. With an online store, Cars24 can keep functioning.
Threats
- Competitors: Pre-owned car market is an attractive market. So many people now have noticed how potential this environment is. With the help of technology, new competitors can easily be involved in this field. Besides, expenses to change business are low.
- Lack of Trust: The fact that so many people are uncomfortable with the way Cars24 inspect and give a price. And as a result, Cars24 has a lot of bad feedback from customers. This will be a chance for Cars24’s competitors to take advantage and leave Cars24 behind.
- Condition of Cars: The condition of an old car is not guaranteed which all time hinders a customer from purchasing a used car from Cars24.
Conclusion
Being the one of the leading profitable startups in the country, it is setting the standard of great business models. Cars24 is gaining good ground with its business model, is also focusing on the investment industry, which is helping carry out the excessive cash inthe meantime.
