Who are OLX?
We deep dive into the marketplace
OLX is a marketplace that may have gone under the radar so far, but is set to do big things in 2020. Although they are headquartered in Amsterdam and now owned by a South African company called Naspers, they are actually really big in India, with 90% of its listings there being made up of household goods and electronics. However it looks set to start to dominate the used car market in India after buying a huge share in Frontier Car Group. It looks as though this will be a huge focus for OLX in India going into the next financial year.
Who are OLX?
OLX was started in 2006 by Fabrice Grinda and Alex Oxenford. They aimed to start an alternative to the website Craiglist, which is popular across America. They have made a number of investment moves, like acquiring Mundoanuncio.com to target the Hispanic market, and investing in the Chinese classifieds site Edeng.
Perhaps the biggest business move came in 2010, when South African company Naspers took the majority share of the company. They operate in companies such as India, Brazil, Kenya, the Philippines, and Pakistan. They also have an offshoot called “dubizzle” that operates in the UAE, Egypt, Bahrain and Saudi Arabia, among other countries.
What does the future hold for OLX?
OLX are big in India, and they have recently invested in the Frontier Car Group. It looks as though they are set to try and make this a bigger part of their overall global strategy, especially as they are looking to open 150 offline stores to support their used car business by 2021. Across the world market, they have up to 4 million monthly listings. They also offer ad campaigns, which is another part of the company they look set to expand in the future, especially as users will be so far down the purchase intent funnel. The business head recently stated the advantages of advertising with OLX and how much their reach and research into what customers have been searching can help advertisers.
What are the issues with OLX?
Unfortunately for OLX there have been a lot of headlines around counterfeit products being sold and also stolen cars. In fact, a story is circulating about a man selling a scooter on OLX, stealing it, and then selling it again. While the company is growing, it is important to note that this quick rate of growth could leave them struggling to keep up with putting brand protection measures in place.