Image credits: Pedro Lastra
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News Article

Kavak to Expand Its Operations to Puebla

By Alejandro Enríquez | Thu, 12/10/2020 - 08:52

 

Mexican Unicorn Kavak started operations in Puebla with MX$215 million investment (US$10.81 million). COO Federico Ranero, who is also former CEO of Uber Mexico, commented that Puebla is the fourth most important market for used vehicle sales in Mexico with a value of US$2 billion a year.

"Kavak's arrival to the state offers certainty to the people of Puebla to sell or purchase a pre-owned vehicle without the fear of being scammed in a market that performs an average of 300,000 transactions a year, 80 percent of which take place among individuals," said Romero on a statement. The company will have the capacity to store and process 4,000 vehicles per month, which represents direct employment for more than 200 jobs.

The Mexican company has aggressively expanded its operations during 2020. The four-year-old company ramped up operations in Mexico City. In July, Kavak first expanded its operations to Guadalajara, Mexico's third-largest city. Soon after it announced a US$10 million investment in Argentina. In the South American country, Kavak purchased Checkars, a platform also focused on online pre-owned vehicle sales.

In November -soon after the Kavak was valued as a unicorn- the company announced its expansion to Monterrey, Mexico's second largest city and the third one for the pre-owned vehicle sales. The MX$365 million (US$18.36 million) investment will allow kavak to process 7,500 vehicles per month while creating 200 local jobs. Now, with its expansion to Puebla, the company secures the top four markets for pre-owned vehicles in the country.

"Kavak will be the unquestionable leader in Mexico in its segment. In five years, we will be operating in a few more countries across the region, with a market share similar to what we enjoy in Mexico. All consumers involved in purchasing, selling, or financing a vehicle will see Kavak as their first option given the benefits we will offer," told Carlos García, CEO of Kavak to MBN early this year. "In five years, we may go public as well. We have great ambitions."

You can read the full interview with Carlos Garcia here

The company has also announced a partnership with Uber México where the platform will offer Uber drivers a special deal to buy a car. This move benefits both companies and Uber drivers as a way to encourage more people to join the app and buy a car instead of renting it.

KAVAK’s added value comes in its 240-checkpoints for pre-owned vehicles and guarantees that reassure customer satisfaction when buying an used vehicle. This is why processing vehicles through the revision process is important for the company to offer them at their digital marketplace.

 

The data used in this article was sourced from:  
Forbes Mexico, Expansion
Photo by:   Pedro Lastra
Alejandro Enríquez Alejandro Enríquez Journalist and Industry Analyst