The size of the used car market in India was over 4.4 million units in 2020, according to Statista. Its size exceeded that of the country’s new car market for the measured time frame. The growth of India’s used car market over the past few decades could be attributed to factors like affordability, ease of resale and a growing network of dealers of used automobiles. At the same time, online sellers like Droom have helped in boosting the sales of such cars by making them more accessible to buyers.
The startup has managed to strive ahead by leveraging a robust managed marketplace business model, while proving that it is economically viable and independent of scale due to the use of technology, economy of scale, economy of scope, asset light, and network effects.
What is a managed marketplace?
A managed marketplace is an online platform that can yield a highly standardised, curated, tightly…