e-commerce platform AskmeBazaar ventures into two-wheeler sales in Pune
After Snapdeal and Flipkart, online marketplace AskmeBazaar has ventured into two-wheeler sales, mirroring similar moves by rivals Snapdeal and Flipkart. The company, which launched two-wheeler sales in Pune last week, is currently selling Honda and Piaggio bikes and will soon add Suzuki and Royal Enfield to the mix.
“This is our first extension into both products and services. Most automobile purchases require loan and insurance processing, vehicle registration, accessories, etc, and we will provide end-to-end transactional services,” said Kiran Murthi, CEO of AskmeBazaar.
Murthi said the company will focus on stabilising the model in Pune first, before rolling it out in 30 cities — where the company already has a presence — by June. The company is currently working with local dealers, and not manufacturers to process these sales, he said.
According to Murthi, the company received four orders within a week of starting two-wheeler sales. He said while the actual transaction numbers would be relatively low, the average ticket size would be large, given the category. “We would have to do 40 transactions a month to break even,” he said.
Over the past two years, the company has focused on the hyperlocal model, which Murthi said was working well for it. One reason for selecting Pune as the first market was that it is among the more successful hyperlocal markets for the company, and that it’s a large market for twowheelers.
AskmeBazaar is working to sign on more auto dealers, spare parts suppliers and loan and insurance companies as it tries to create the ecosystem needed to service this category.
The company would be focusing on two-wheelers for the foreseeable future and would explore the option of adding fourwheelers closer to the end of the year, Murthi said. Snapdeal was the first ecommerce company to launch twowheeler sales in November 2015, followed by Flipkart. Earlier this year, Flipkart said it was aiming at cornering 2% of all two-wheelers sales in the country.