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HomeNEWSKavak arrives in Colombia to change the way of buying a car...

Kavak arrives in Colombia to change the way of buying a car • ENTER.CO

Kavak, the first startup from Mexico, announced its arrival in Colombia with a view to expanding its business model to countries such as Brazil, Argentina and Turkey. This digital platform offers a new model for buying and selling used cars that promises to change the Colombian market.

This announcement comes after the Attorney General’s Office revealed that in the automotive sector Around 4,000 complaints of fraud in transactions are registered by year. Therefore, Kavak’s challenge is to contribute to the formalization of this market in Colombia and gain the confidence of Colombians in virtual transactions. A bleak outlook for this platform is concerns about the future of this type of ‘unicorn’ after massive layoffs were announced last week.

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Kavak’s expansion contemplates an investment close to 120 million dollars in Latin America alone. In Colombia, this investment will be reflected in the creation of 150 jobs during the first year of operation. Also, this investment will be reflected in infrastructure such as the 3 experience centers that will operate in Bogotá, and a reconditioning factory. Luis Eduardo López, General Manager of Kavak Colombia, revealed to ElTiempo.com that the used vehicle market in Colombia is one of the largest in Latin America, with approximately 1.2 million transactions each year.

On the digital platform, which can be accessed from a cell phone or a computer, 400 vehicle models are already available for purchase. Kavak’s business model consists of offering interested users a catalog of vehicles that meet a rigorous review of the 240 security points and its reconditioning process that is carried out in the company’s plant. The two novelties of this business model are that the buyer can receive the vehicle at his home or at an experience center. You can also try the car for 3 days or 300 kilometers, in this time you can retract the purchase. On the sellers’ side, Kavak guarantees them to receive their money in less than 2 hours.

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