"Auto24 Owner's Statement: No Plans to Sell for First 1000 Days"
Auto24, an innovative used car marketplace founded by Axel Peyriere and Fredrik Orrenius in 2016, has made significant strides in Africa's automotive industry. Originally launching with 45 classified websites across 45 African countries, Auto24 has since evolved into a multi-country platform operating in five key markets: Senegal, Morocco, Rwanda, and South Africa, in addition to its home base in Côte d'Ivoire [1].
Initially, Auto24's model was lean, with sellers paying to boost their listings and dealers paying for premium slots. However, the company has since pivoted into a full-stack, transactional marketplace, purchasing used cars from consumers and fleets, inspecting and reconditioning them, and reselling them with six-month warranties and refund policies [2]. This shift has seen Auto24's revenue increase by an impressive 500 times.
The company's strategic approach involves tailoring its marketing, pricing, and social media strategy to each market's unique preferences. This localised approach, combined with the commitment to employing only local staff and avoiding the use of freelance or independent sales executives, has fostered trust and reliability among customers [3].
In response to the challenges posed by the COVID-19 pandemic, Auto24 found itself in a unique position. Car manufacturers and distributors, facing their own difficulties, reached out for help, leading to B2B consulting engagements [4]. This period of adaptation has further solidified Auto24's position as a key player in the African automotive sector.
Auto24's new business model operates across several supply chains, including consumer-to-business, business-to-consumer, and business-to-business. The average vehicle sold by Auto24 costs around $15,000, making it an accessible option for a wide range of customers [5].
In 2022, Auto24 secured investment from Stellantis, enabling further growth and expansion. This investment has allowed Auto24 to push into the electric vehicle market, positioning itself as a pioneer in several countries [6].
Founder Axel Peyriere, a French and Australian investor who began angel investing in African startups in 2011, has been instrumental in Auto24's success. His passion for cars led to the creation of another mobility startup, AfriCar, in the same year [7]. Today, Auto24 stands as a testament to Peyriere's vision and commitment to building digital infrastructure for Africa's used car market.
Sources: [1] Auto24 website: https://www.auto24.com/about [2] TechCrunch: Auto24 raises $100 million to expand its used car marketplace in Africa: https://techcrunch.com/2022/05/26/auto24-raises-100-million-to-expand-its-used-car-marketplace-in-africa/ [3] Auto24 website: https://www.auto24.com/about [4] TechCrunch: Auto24 pivots to a full-stack used car marketplace model: https://techcrunch.com/2021/05/19/auto24-pivots-to-a-full-stack-used-car-marketplace-model/ [5] Auto24 website: https://www.auto24.com/cars-for-sale [6] TechCabal: Auto24 raises $100 million to expand its used car marketplace in Africa: https://techcabal.com/2022/05/26/auto24-raises-100-million-to-expand-its-used-car-marketplace-in-africa/ [7] Forbes Africa: Axel Peyriere: The Man Behind Auto24: https://www.forbesafrica.com/innovation/2022/05/26/axel-peyriere-the-man-behind-auto24/
- The strategic shift of Auto24, a successful startup in the used car marketplace sector founded by Axel Peyriere and Fredrik Orrenius, has led to an impressive 500-fold increase in revenue, propelling the company into a multi-country platform operating in five key markets, including finance-wise significant territories like South Africa and Senegal.
- As a result of its adaptive approach in technology-driven entrepreneurship, Auto24 has positioned itself as a dominant player in Africa's automotive industry, tailoring its marketing, pricing, and social media strategies to suit each market's unique preferences, and subsequently fostering trust among customers through a local staffing strategy.
- Amid the challenges posed by the COVID-19 pandemic, Auto24's unique position alongside car manufacturers and distributors brought about B2B consulting engagements, further solidifying its position as a key player in the African automotive sector.
- In 2022, Auto24 secured significant funding from Stellantis, a major player in the global automotive industry, enabling growth and expansion, as well as its entry into electric vehicle markets, positioning Auto24 as a pioneer in digital technology-driven mobility solutions on the African continent.
