In 2019, ACKO, a digital insurance company, launched ACKO Drive, an online platform for car buying. Traditionally, car buying in India involves visiting multiple dealerships, negotiating prices, and completing extensive paperwork. ACKO Drive aims to provide a digital platform where users can research and purchase vehicles online.
Expansion into Auto Sales
ACKO Drive is part of ACKO's broader expansion into different sectors. Founded by Varun Dua, ACKO started with digital insurance services and later extended its focus to the auto sales industry, which has seen limited digital adoption compared to other sectors.
Challenges in Traditional Car Buying
Car buyers in India often face challenges such as time-consuming dealership visits, varying pricing structures, and paperwork. ACKO Drive seeks to address these challenges by consolidating aspects of the car-buying process into one platform, allowing for online model research, price comparison, and financing options.
Features of ACKO Drive
The platform offers features such as car model searches, price comparisons, and access to financing options. ACKO Drive partners with over 350 dealerships in five cities and provides paperless financing through multiple banking and NBFC partners. The platform also offers home test drives, contactless delivery, and digital insurance services.
Outlook on Digital Car Sales
ACKO Drive has served a reported 5,000 customers since its launch. The potential for digital platforms in car sales is expected to grow, with some industry projections indicating that a portion of new car sales could transition online. However, the extent of digital adoption in the Indian auto market remains uncertain, with factors such as regional variations, consumer behaviour, and competition influencing the development of online car-buying platforms.