Mendizábal is already looking for a successor, since next year he will become CEO for the countries of the region.
OLX Autos is part of the OLX Group, a division of Prosus, owned by Naspers, one of the largest technology investors in the world. In addition to Argentina, it is in Chile, Colombia, Ecuador, Peru and Mexico. Outside of Latin America it operates in India, Indonesia, Nigeria, Pakistan and the USA.
The business model is based on the purchase of used cars from individuals and companies (corporate fleets) which it then resells to a network of some 500 associated dealerships throughout the country. The operation is online, in three steps.
“Our business is not the margin that we charge between the purchase and the sale, which is below what a traditional dealership applies. We make the difference in the volume. Through our parent company we have sufficiently broad financial backs to buy a fleet of 500 cars from a company in a single operation ”, Mendizábal highlighted.
Regarding the risks of buying a car online, he clarifies: “Few customers lie to us about the condition of their car. In addition, any mechanical issue can be fixed. The biggest problem is the papers, making sure everything is in order. And that sometimes gets complicated because the records do not have everything digitized, “he explained to this newspaper.
From 2018 to today, OLX Autos has purchased more than 30,000 cars in the country. It has commercial offices in Buenos Aires, Córdoba, Mendoza, Salta and Bahía Blanca. And it has alliances with Autocity Tagle in Córdoba, through which around 400 cars are acquired per month, or with the developers Grupo Edisur and Grupo DYCSA in Córdoba and the real estate company RE / MAX Chacras in Mendoza, through which it offers its customers clients the possibility of delivering a car in the form of payment for a lot or property.
Source From: Ambito
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