Make the switch without a hitch

DREAMS IN MOTION - CarSwitch, the UAE's first online marketplace for certified used cars, makes buying and selling hassle-free

Most people can recall at least a couple of used car horror stories they have heard over the years. Imad Hammad, CEO of CarSwitch.com, had heard one too many, which led to an itch to create an online platform to keep car buyers and sellers protected through transparent transactions. 
Founded in 2016 by former McKinsey & Company consultants Imad Hammad and Ali Malik, the UAE's first marketplace for certified used cars addresses the gaps in the online experience with thorough inspections and specialist assistance. The portal has an edge over other platforms because it manages the sales process from A to Z, making buying and selling hassle-free.
More and more people in the UAE, and the wider region, are going online to sell and buy cars with one of CarSwitch's recent surveys suggesting more than 85 per cent of consumers starting to use some online channels.
"The used car space is a $20 billion per year opportunity in the region, with the UAE alone representing $2.5 billion. Yet, it's still an opaque experience for most sellers and buyers, as there is limited reliable information on prices, history and condition," says Imad.
"CarSwitch is the UAE's first marketplace for inspected and warrantied used cars that are sold directly from an end seller to buyer.
"For buyers, this means they can see the full results of CarSwitch's 200-point inspection right on the website, down to pictures of every scratch. So, no more time-consuming trips to test drive cars that surprise you with unexpected faults. What's more, a CarSwitch specialist accompanies you for the test drive and then helps you with all the paperwork from insurance, to financing, to transfer of ownership.
"For sellers, this takes the entire process off your hands. Our specialists will come to your location to photograph, inspect and add a warranty to the car. We will then advertise, answer all the phone calls, arrange the test drives and guide you through all the paperwork to close the sale."
The best part is every transaction is direct from seller to buyer, so they both get fair value, he says.
And how has been the journey of CarSwitch so far?
"An incredibly high-speed rollercoaster. Ali Malik and I white-boarded the concept in December 2015 and we had the CarSwitch.com beta version live within 60 days. Since then the pace has only accelerated," says Imad.
So far the portal has interacted with more than 6,000 sellers, received one million plus sessions, has 400 cars live right now, and is growing 30 per cent month-on-month.
"We recently launched our iOS app with one for Android coming soon and there is much more to come. In the immediate future, our focus is to further cement the proposition in the UAE, at which point we may consider taking CarSwitch to neighbouring markets," says Imad.
"Our focus is on bringing a radically enhanced experience to used car shopping. It starts with the technology, which is already quite unique to the region with validated features, and it will continue to evolve with several planned innovations.
"Ultimately, we aspire to make used car buying and selling a simple flick of a switch, a digital one. From which point CarSwitch takes care of everything in the background and you only need to be physically present for delivery. We have a roadmap to getting there that we constantly review and tweak to incorporate learnings as we progress."
Regarding the main challenges CarSwitch has faced since it was launched, Imad says: "Like most startups, the largest challenge is deciding which are the largest challenges. Ruthless prioritisation, based on tangible metrics with meticulous execution, is key to survival."
Ali Malik, head of marketing, says what makes CarSwitch different from other online car marketplaces is that this type of service has simply never existed in the region before.
"CarSwitch is quite different and three factors make us unique: every car is inspected and warrantied with full results displayed online; you buy straight from the owner; our specialists walk both buyer and seller through every step of the process," he says.
"Our marketing activities have focused on digital channels, primarily Google, Facebook and other social media platforms. In the coming months, we plan to further scale our digital platforms, whilst complimenting it with offline media channels. Several initiatives are already underway, and by now you would have likely heard of CarSwitch on the radio."
CarSwitch recently secured $1.3 million investment from Glowfish Capital, a Dubai-based boutique venture capital firm.
Sanjeev Kohli, managing partner at Glowfish Capital, says: "At Glowfish Capital we review every investment along three primary dimensions: the market opportunity, the proposition itself and the team. CarSwitch ticked all the boxes for us.
"The space is incredibly exciting with relatively large ticket size transactions, largely locked in traditional channels with little innovation in recent years, and a host of peripheral revenue opportunities such as insurance, financing, car care, etc. The CarSwitch proposition itself elegantly targets the fundamental inefficiencies of the user experience, and does it so well that we could see a transition to an e-commerce-like model in the future. Finally, it's a rock star team; years of experience bringing business models to life in pragmatic ways, analytically savvy, and an incredible hunger to make it happen."
Regarding potential for additional investment down the line, Kohli says: "There very well could be."
- arif@khaleejtimes.com