Kavak set to revolutionize the face of used cars in the GCC
Dubai, UAE: Monday 14 November 2022: Kavak has officially opened its doors to its largest customer hub in the world, in Dubai, which is set to revolutionize the pre-owned car industry in the GCC. The global giant, valued at $8.7 billion, recently announced its merger with regional player Carzaty.
Kavak is unlike any other platform for used vehicles in the region. It has removed the uncertainty currently surrounding used car purchases, which are rampant with risk. Kavak is not a middleman connecting buyers and sellers, it owns all its cars. All cars purchased by Kavak go through 240 points of inspection before making their way to Kavak's inventory. This inventory is one of the widest in the region, currently offering hundreds of cars on hand and available to purchase.
Every single one of these cars has been reconditioned by Kavak, and the company is also setting up its own reconditioning centres throughout the region, to ensure the highest quality standards. Kavak has already invested in building a 15,000 sqM reconditioning centre in Dubai. When fully operational, the facility will employ 150 expert mechanics and staff, and will handle a monthly capacity of 1,300 vehicles. Services offered will include refurbishment, servicing, and warranty repairs. Plans in KSA will see a similar customer hub established in Riyadh.
Kavak cars also come with a 90-day free warranty, optional extended warranty, and a 7-day return policy. The company prides itself in on its extensive assessment process and takes complete ownership of its vehicles and their quality, ensuring that the highest level of service is maintained both throughout, and after the buying process.
While Kavak has a physical presence, the entire process can also take place online, at Kavak.com, to service customers around the region.
Commenting on the Kavak's out-of-the-box strategy, Marwan Chaar co-CEO of Kavak GCC said: “Quality standards have become the highest point of discordance in the global used cars market. Kavak's model has disrupted the industry to provide consistency and reliability, so that customers can feel trust and reassurance in the car they are buying. Kavak also offers customers up to two years in warranties, ensuring their peace of mind. The GCC region presents a vast opportunity to bring a transparent, high level user experience for the buying and selling of used cars and we are excited to be on this journey with Kavak.”
Founded in Mexico in 2016 by Carlos Garcia Ottati, Kavak is a tech and data-driven platform for used cars with an extended presence in ten countries including Turkey and now, the GCC. Carzaty, founded in 2018 in the Sultanate of Oman by ex-McKinsey consultant Hassan Jaffar and Harvard Business School alumnus Marwan Chaar, is an online platform to search, compare, buy and finance new and used cars. Kavak now plans to invest $130 million over the next two years to establish its operations in the Gulf region.
Commenting on how far Carzarty has come, and its future with Kavak co-CEO of Kavak GCC, Hassan Jaffar Al-Lawati said: “When we launched Carzaty in Oman we were problem-solving for immediate market needs - to create a data-driven business that could best address customer demands with a strong focus on improving the customer journey. With an investment from the Omani government, we were equipped to build the foundations of our business locally and expand into the UAE which acted as our launchpad to scale. As we start this new chapter with our colleagues at Kavak, we are excited to bring our local market knowledge to their global playbook as we double down on the UAE and Oman and expand further into KSA and the rest of the GCC.”