CarDekho Shutting Down Used Car Retail Business

CarDekho Shutting Down Offline Used Car Business 😮

Main reason behind this is, that it's burning a lot of money and there is no scope of profitability, according to CEO Amit Jain.

He said that brokers make money in this business as their expenses are very low and their holding period is few days.

The company will act as a mediator going ahead between the buyer and the seller.

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[nareshpullakandam]

After spending 250 million dollar he learned not to do offline great enterpreneur

[fredyph]

No. Not really. They jacked up the prices of used car, drove up used car prices, now they can't sustain the model! My 2011 model car which was not going for more 2.5 lacs in 2019 is fetching 3.2 lacs in 2023, that's just how insane the price rise has been. No one is talking about this!

[roninr]

In which world they buy at 5 lakh and sell for 5.5 😂😂😂
When I wanted to sell my 2006 pulsar in very good condition rarely used with Odometer 38k around I was quoted 3k and when I tried to buy same condition bike after a week I was quoted not less than 35k 😂😂
Same thing happens with cars.
Shutting down is just a way to show losses and eating away investers money.

[PVivekmca]

They tried to sell used cars in price of new car 😅😅😅

[senthilprasadh]

Individual car resellers were doing good, cars were priced nominal.
Startups of iit/iim grads said they are going to disrupt the market and then finally eat investor money while of erring terrible user experience

[asolomon]

This is called a heist of $250 Million

[divanshu]

I see many business in India not earning profit. Cause the people really don't have money to spend. It's hard to earn profit in India.

[shadaksharicr]

Why they don't calculate this before starting the business....😂😂😂

[cooljunky]

Investors will soon realise that Indian entrepreneurs are interested in building their bank balance. Not interested in solving a problem. Death of entrepreneurship in India. 😅 Not surprised at all. 😂😂

[rickgolder]

According to this thing, every single business is a loss business

[samrai]

i wish spinny also shutdown, they increased second hand car prices like carzy

[akashverma]

They want profit margin very high every second hand car seller in India like cardekho and all buys a car and want to sell at 1.5 - 2 times. But second hand buyers in India prefer to directly contact seller by jugad in this both buyers and sellers are happy.

[statusoftoshniwals]

When you raise money without calculating this basic expenses 😂😂

[rachitaiyanna]

Good thing.... Their biggest competitor is olx and social media... There is direct selling in these platforms

[BenDover-crxb]

And ye log shark tank mein mein profit and loss pe gyan dete hai

[tuts]

They increased the price, made the market and the buyer price sensitive, now that nobody is buying they are shutting down😂

[piyushbaroliya]

Almost every startup is bleeding money of some kind now. I can't understand what kind of planning they do, on fancy boardrooms, with high paying teams, and large investor money.

I think Raju Bhai is better at planning then them.

[gaurav_gandhi]

I think this is more of a strategic decision. Other used car marketplaces, like Olx and Cars24, have also shut down their offline businesses. The industry is changing and shifting towards a home inspection-based model.

[chickencurry]

I don't know where they spent their 'refurbishing' budget. I know 3 people who bought cars through CarDekho and all of them were shown horribly maintained cars with rusted body panels that had been patches up using putty and paint to try and hide it. Also the interior was in bad condition as well along with some mechanical issues.
To make things worse, they were being asked for exorbitant prices for cars in such bad conditions.
Two of them didn't buy through the platform at the end while the third guy - who had connections and is 'known' in the area - brought down his car's price by over 1.2 lakhs before buying it off.

[armaansadiq]

Bussinessmen arent fools bro, they are smart thats y they are bussinessmen, their profit margin will be more than 20 -30 percent easily, which will cover the expenses too, 5 lakh is just for public, real price only they know..