Operators leverage mergers for robust continental auto market
Automotive trading platform, Cars45, and online marketplace in Africa, Jiji, have announced a merger to create a dominant automotive marketplace for the continent.
The agreement to merge operations according to the companies would create a new and leading pan-African car buying and selling business.
The merger is expected to further deepen and formalise the automotive retail process and standardise customer experience across the continent.
Speaking at a media parley in Lagos, Chief Executive Officer, Cars45, Soumobroto Ganguly, said the firm’s merger with Jiji is aimed at creating a new kind of automotive retail experience for users in Africa.
Ganguly said it makes sense to combine online and offline expertise.
“We are confident of jointly building an African champion in the O2O automotive sector. Together we look forward to making transactions transparent and convenient for our customers, dealers and franchisees across all our current and future markets.
“Our business is complimentary, Jiji has a good database of listings, merchants, sellers, dealers. Jiji has got a powerful performance management in Nigeria to generate leads. Cars45, on the other hand, has a strong transaction side in terms of bookings and inspections for closing transactions. We hope to combine offerings with all kinds of users and stakeholders,” he added.
In his remarks, Investor Relations Manager, Jiji, Maxim Makarchuk, said the merger represents the company’s bold step into the transactional business model and an important foundation for building the future of the company.
Makarchuk said the goal of the merger is to bring value to the end-users and create a one-stop solution for buying cars in the most convenient way for customers, adding that the merger is also a logical step in Jiji’s development as the leading e-commerce platform on the continent.
“Our strategy implies moving further into transactional marketplace models and the Cars45 merger is an important step in its realisation. We are a customer-first company, and we are positive that customers will enjoy an even wider array of options with this relationship,” he said.
Also speaking, Director, Jiji Africa, Yuliy Shenfeld, said: “We want to transform the market of buying and selling of cars with Cars45, which will have to go through inspection first before being listed on Jiji.
“We are looking forward to creating a new advanced experience for customers. Undoubtedly, our collaboration will bring additional value to the consumers.”