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Why Droom's Business Model is so successful?

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Droom’s Company Overview


Droom is India's first and only online marketplace for buying and selling new and used automobiles. At over 65% of the online automobile transactions market share, Droom is India's largest auto portal. Droom is also India's 4th largest E-commerce company in terms of GMV. The automobile platform is categorized by category, seller, price, condition, and city, among other factors. Droom has 15k+ listings of used automobiles for sale from over 500 cities across India. Droom has built the entire ecosystem for automobile transactions, including Orange Book Value (used vehicle pricing engine), Eco (1,000+ points vehicle inspection), History (History records for used vehicles), Carnation Auto (500+ Droom certified used vehicle dealerships), Droom Credit, Droom (New Vehicles), and Droom Discovery. Droom is a pioneering online marketplace for buying and selling new and used automobiles in India, providing a comprehensive platform encompassing a wide range of vehicles. Established in 2014, Droom has transformed the automotive marketplace by leveraging technology and data-driven insights. The platform operates through a user-friendly website and mobile application, offering a diverse inventory of cars, motorcycles, scooters, and even bicycles. Droom's business model facilitates transactions between buyers and sellers, providing both parties with a transparent and efficient marketplace. The company earns revenue through transaction fees and listing fees, where sellers pay a nominal fee to list their vehicles, and Droom charges a percentage on a successful car sale. Additionally, Droom offers value-added services such as vehicle history reports and inspections, further enhancing the trust and transparency in the buying process. With a commitment to innovation, convenience, and a vast selection of vehicles, Droom has established itself as a leading player in the Indian automotive e-commerce space.

https://droom.in/

Country: Haryana

Foundations date: 2014

Type: Private

Sector: Consumer Services

Categories: Automotive


Droom’s Customer Needs


Social impact:

Life changing: affiliation/belonging

Emotional: fun/entertainment, rewards me, badge value, nostalgia

Functional: saves time, simplifies, makes money, reduces risk, organizes, reduces effort, avoids hassles, reduces cost, quality, variety, sensory appeal, informs


Droom’s Related Competitors



Droom’s Business Operations


Brokerage:

A brokerage firm's primary responsibility is to serve as a middleman, connecting buyers and sellers to complete transactions. Accordingly, brokerage firms are compensated through commission once a transaction is completed. For example, when a stock trade order is executed, a transaction fee is paid by an investor to repay the brokerage firm for its efforts in completing the transaction.

Classified advertising:

Classified advertising is most prevalent in newspapers, online publications, and other periodicals that may be sold or given for free. As a result, classified ads are much less expensive than more prominent display ads companies use, even though advertisements are more prevalent.

Customer relationship:

Due to the high cost of client acquisition, acquiring a sizable wallet share, economies of scale are crucial. Customer relationship management (CRM) is a technique for dealing with a business's interactions with current and prospective customers that aims to analyze data about customers' interactions with a company to improve business relationships with customers, with a particular emphasis on retention, and ultimately to drive sales growth.

Customer loyalty:

Customer loyalty is a very successful business strategy. It entails giving consumers value that extends beyond the product or service itself. It is often provided through incentive-based programs such as member discounts, coupons, birthday discounts, and points. Today, most businesses have some kind of incentive-based programs, such as American Airlines, which rewards customers with points for each trip they take with them.

Auction:

An auction is a procedure in which prospective purchasers submit competing bids for assets or services. Providing a product or service for sale to the highest bidder is a standard business practice. Because they satisfy both businesses and customers, auction business models help to market sustainability. Companies gain because their product is accessible to a pre-existing market. Customers profit from the auction model since they have a say in the product's ultimate pricing.

Digital transformation:

Digitalization is the systematic and accelerated transformation of company operations, processes, skills, and models to fully exploit the changes and possibilities brought about by digital technology and its effect on society. Digital transformation is a journey with many interconnected intermediate objectives, with the ultimate aim of continuous enhancement of processes, divisions, and the business ecosystem in a hyperconnected age. Therefore, establishing the appropriate bridges for the trip is critical to success.

Freemium:

Freemium is the sum of the words free and premium and refers to a business strategy that provides both free and premium services. The freemium business model works by providing essential services for free and charging for enhanced or extra capabilities. This is a typical practice among many software firms, who offer imperative software for free with restricted functionality, and it is also a popular approach among game developers. While everyone is invited to play the game for free, extra lives and unique game features are accessible only once the player buys.

Experience selling:

An experience in the sales model describes how a typical user perceives or comprehends a system's operation. A product or service's value is enhanced when an extra customer experience is included. Visual representations of experience models are abstract diagrams or metaphors derived from recognizable objects, actions, or systems. User interfaces use a range of experience models to help users rapidly comprehend what is occurring in the design, where they are, and what they may do next. For example, a software experience model may depict the connection between two applications and the relationship between an application and different navigation methods and other system or software components.

Sharing economy:

The sharing economy eliminates the necessity for individual asset ownership. The phrase sharing economy is an umbrella word that encompasses various definitions and is often used to refer to economic and social activity that involves online transactions. Originally coined by the open-source community to refer to peer-to-peer sharing of access to goods and services, the term is now occasionally used more broadly to refer to any sales transaction conducted via online marketplaces, including those that are business to consumer (B2C) than peer-to-peer.

Featured listings:

A highlighted listing is more important and noticeable than a regular listing, providing maximum exposure for your workplace to consumers searching in your region. In addition, customers are attracted to these premium listings because they include more pictures of your home ? and its excellent location.

Online marketplace:

An online marketplace (or online e-commerce marketplace) is a kind of e-commerce website in which product or service information is supplied by various third parties or, in some instances, the brand itself, while the marketplace operator handles transactions. Additionally, this pattern encompasses peer-to-peer (P2P) e-commerce between businesses or people. By and large, since marketplaces aggregate goods from a diverse range of suppliers, the variety and availability are typically greater than in vendor-specific online retail shops. Additionally, pricing might be more competitive.

eCommerce:

Electronic commerce, or e-commerce (alternatively spelled eCommerce), is a business model, or a subset of a larger business model, that allows a company or person to do business via an electronic network, usually the internet. As a result, customers gain from increased accessibility and convenience, while the business benefits from integrating sales and distribution with other internal operations. Electronic commerce is prevalent throughout all four main market segments: business to business, business to consumer, consumer to consumer, and consumer to business. Ecommerce may be used to sell almost any goods or service, from books and music to financial services and airline tickets.

Peer to Peer (P2P):

A peer-to-peer, or P2P, service is a decentralized platform that enables two people to communicate directly, without the need for a third-party intermediary or the usage of a corporation providing a product or service. For example, the buyer and seller do business now via the P2P service. Certain peer-to-peer (P2P) services do not include economic transactions such as buying and selling but instead connect people to collaborate on projects, exchange information, and communicate without the need for an intermediary. The organizing business provides a point of contact for these people, often an online database and communication service. The renting of personal goods, the supply of particular products or services, or the exchange of knowledge and experiences are all examples of transactions.

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