Kavak: A Latin American Startup Aiming To Disrupt The Used-Car Market Across Emerging Economies
Syeda Ikrama, Syeda Maseeha Qumer

Informasi Umum

Kode

24.10.048

Klasifikasi

338.04 - Entrepreneurship

Jenis

Case Studies

Subjek

Entrepreneurship

No. Rak

Dilihat

433 kali

Informasi Lainnya

Abstraksi

This case study is about the meteoric rise of Kavak, a Mexican used car retailer that aimed to disrupt the emerging pre-owned car markets with its unique value propositions and compelling global expansion strategy. Co-founded in 2016 by Carlos García Ottati (Ottati), in Mexico City, Kavak emerged as an end-to-end solution to buy, manage, sell and finance pre-owned cars. Using pricing algorithms driven by artificial intelligence and machine learning-based inspection tools and personalized recommendations, Kavak reshaped the mobility sector in the Latin American and Middle Eastern regions. In a mere six years of operation, the company established its presence in nine countries: Argentina, Brazil, Chile, Colombia, Mexico, Peru, Turkey, the UAE and Oman. Kavak’s innovative yet simple business model ensured transparency and guarantees in all its transactions where reconditioned vehicles were sold to thousands of customers through its e-commerce platform as well as a network of brick-and-mortar hubs. Its in-house financing arm Kavak Capital was at the core of its business model, as it offered affordable leasing options, making car ownership possible for both first- and second-time car owners within just a few minutes of applying. The platform had an inventory of 40,000 vehicles as of 2023 with more than 50% of Kavak’s sales being financed by Kavak Capital. The case study discusses the challenges faced by Kavak in the fragmented used car market including rising interest rates for vehicle loans, managing capital-intensive operations, rising competition and external economic headwinds such as inflation and slowing economic growth. Going forward, the challenge before Ottati and his team was how to make profits, build customer trust, attract customers and achieve global success.

Koleksi & Sirkulasi

Tersedia 1 dari total 1 Koleksi

Pengarang

Nama	Syeda Ikrama, Syeda Maseeha Qumer
Jenis	Perorangan
Penyunting
Penerjemah

Penerbit

Nama	Emerald
Kota	New York
Tahun	2024

Sirkulasi

Harga sewa	IDR 0,00
Denda harian	IDR 0,00
Jenis	Non-Sirkulasi

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