As COE prices continue on an everlasting hike, more and more Singaporeans are turning towards the secondary car market as an alternative to the exorbitant premium prices that are being placed on newly imported and produced cars. This phenomenon has allowed one particular automotive resale company to disrupt traditional car marketplaces extensively, while establishing itself as a premier car resale platform - Carro.

A start-up based in Singapore, Carro began operations in 2015 and slowly built up its brand and reputation to become “Southeast Asia’s largest used car marketplace”, leveraging its proprietary pricing algorithms while expertly navigating the convoluted compliance regulations of different SEA countries. From a product manager’s perspective, Carro is indeed a masterclass in building and scaling a tech-driven platform that leverages AI to address real-world problems while skillfully keeping up-to-date with and satisfying user needs.

1. Data-driven approach incorporates diverse insights

Carro leverages an AI-driven use of data analytics to power its online pricing systems. In Singapore’s context, a machine learning program is fed a combination of market-specific data, including past transaction numbers, car mileage and COE prices to derive a base price and a direct-owner sales price. The base price represents the price a car will fetch if brought into a dealership, and it is based on this dynamic pricing principle that allows cars on Carro to attract demand while still maintaining favourable prices effectively. If the car cannot be sold within a designated period of time, the company will instead buy the car directly from its owner and add it to its own dealership stock. By making use of this sort of cutting-edge technology, Carro displays a willingness to embrace innovation in a way that also reflects their understanding of user concerns, both from the perspective of the buyer and the seller. Additionally, their awareness of the nuances within local car markets enables them to navigate legal and regulatory frameworks with relative ease, allowing them to establish themselves as one of the biggest regional car resale platforms.

2. User-centric design demonstrates a deep understanding of the consumer

When first rolled out, Carro’s key value proposition was to simplify the car-making process, from price transparency to buyer-seller communications. These features, however, were borne not out of luck or coincidence but rather in-depth market research and due diligence into their target audience. By taking the time to understand consumer pain points, the platform was designed in such a way that ensured each and every touchpoint was able to remedy a different problem that was prevalent within the market for cars. Overall, this would ensure a smooth and pleasant end-to-end experience, while slowly building up customer trust and relations that would go a long way to contributing to their present-day popularity.

3. Focus on creating an ecosystem, rather than just a product

After perfecting its product, Carro is now interested in building an ecosystem. Apart from its primary resale platform, they have diversified into financing and loan plans, insurance, maintenance, and even scrapping services. By leveraging their already well-established brand following, Carro can effectively ensure that they have demand for whatever services they would like to explore next, while also building upon the initial good first impression to create lasting customer relations. With each wave of new services, the Carro brand can reach a new group of target audiences while strengthening its current customer retention, laying a solid foundation as it continues to strive towards its goal of being a one-stop solution for automotive needs.

Carro’s successful foray into the automotive industry highlights several concepts that product managers can use when developing their products. By taking the time and effort to develop a complete understanding of the customer’s mindset and issues, Carro can create a holistic solution that will be sure to grasp consumers’ attention. If all of my problems can be solved by using Carro, there would certainly be no reason to look at other resale platforms. Furthermore, Carro is constantly looking to update their customer landscape by taking into account different sources and forms of information through embracing data-driven approaches. Lastly, their willingness to explore new services and markets exhibits a form of strategic foresight in building an impactful ecosystem around their already successful product.

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