what is Uxin business model?
By - inside_the_roots
The company is an online used car dealer, NOT a car rental. The closest business model to compare to is Carvana in the United States. Basically, buy a car online and have it shipped to your location of choice. Carvana is currently valued at $50 billion contrasting Uxin’s $1 billion valuation by market cap. Uxin is in a much larger market generally speaking and has a government that is significantly supporting the sale of used vehicles currently.
Their website investor relations is ir.xin.com. You can find all of the pertinent information related to the company there. Financials, leadership, everything. A recent pairing with JD.com, one of China’s leading online sales platforms is another part of the bull thesis on top of the Nio support.
Additionally, the founder and CEO is Kun Dai, who was an instrumental member of Bit Auto, a company founded by William Bin Li, founder of Nio. I believe this friendship and partnership history between the two will help significantly down the road for Uxin.
All in all I AM VERY BULLISH.
Thank you that was helpfull
However it seems that you dont know as well how to compare the business in terms of advantages against other chinese used car companies, eficiency, costumer services, Technology etc.
You're welcome and keep HODLING.
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Guazi beats Uxin on most metrics (cars sold, investment capital, user ratings, complaints resolution rate). Uxin has slightly better geographical coverage and service, based on anecdotal reports. You have to be able to read Chinese to access most of the info though.
It not a new company and hasn't yet proved itself. It keeps changing its business model and hopefully it is current model will find its legs.
One problem with it is its limited information and it's IR dept doesn't seem to be great.
But got in at a low price, and it worth a risk IMO.
Is it one I would gamble the house? No.
But Nio is also a gamble.
They dropped their B2B, B2C and auto financing arms, which is a correct move, but it also means the earnings potential is smaller. The C2C space is tough because transporting the car to another location is expensive and margins for current dealers are already very low. For comparison, Carvana has been bleeding the last 5 years.
The only value proposition i see in China is the ability to exploit price-value differences between big cities and small towns.