Everyone car to create a direct transaction between buyers and sellers of the peer-to-peer second-hand market

Absrtact: The most classical description of the second-hand market, when it belongs to the Akerlof Lemon effect: In the second-hand trade, the seller has sufficient information to grasp the goods, people in the information advantage; the buyer can only infer the commodity status by one-sided indications and is in a weak position of information; the buyer knows

The most classic description of the second-hand market, when it belongs to the Akerlof "lemon effect": in the second-hand trade, the seller has sufficient information to grasp the goods, is in the information superiority; the buyer can infer the commodity condition by one-sided indication, is in the information weakness, the buyer knows its information is weak, has the natural distrust to the seller price, Always tend to underestimate the real value of second-hand goods – the result is that high quality second-hand goods cannot be sold at a price and will slowly exit the market. The average quality of the goods in the market is getting lower, and eventually it becomes a garbage distributing center.

It can be said that as long as there is information asymmetry, this kind of second-hand market self disintegration is unavoidable. But we can, through three principles, slightly reverse the situation:

1. Market stratification. Let the quality of goods and inferior goods segregated, avoid confusion of value.

2. Neutral pricing. Provide more accurate assessment and pricing for specific commodities and ensure that the pricing is recognized by both buyers and sellers.

3. To mediate. To minimize the opaque links between information, increase market transparency.

The start-up company "Everyone car" is following these three points of thinking, trying to create a buyer and seller direct trading Peer-to-peer second-hand market.

Simply put, "everyone car" model can be summed up as "door-to-door inspection" + "No Shop Transactions":

1, the owner of the online sales demand, the platform to send Professional evaluation division, carry equipment door-to-door inspection of the condition and give the test results and recommended prices.

2, the completion of quality inspection, valuation, condition information collection, in the "Everyone Car" platform for sale.

3, buyers see favorite second-hand car, can communicate directly with the owner, booking line under the vehicle test and deal, the whole process by the platform side to provide online and offline support.

4, and the platform side, through the transaction security and after-sale tracking and other means to achieve closed-loop. As a result of the exemption from the rental and vehicle procurement costs, "everyone car" only to the owner charged 3% of the service charge, which dealers 12% to 20% of the price difference system formed a shock.

So, how does the "car for all" approach correspond to the three principles mentioned above?

1, market stratification, "everyone car" only to do 6 years within 100,000 kilometers, the quality of relatively high vehicles, while ensuring that all vehicle sources are individual owners, to eliminate second-hand car dealers in the renovation vehicle inflow. Because of the isolation of inferior vehicle source, users will be in the overall trust in the market trading environment, but also to prevent the market endogenous bad currency by the phenomenon of good currency.

2, neutral pricing, "everyone car" with the Chinese Quality Certification center cooperation, relying on professional evaluators to carry out about 249 on-site testing, as far as possible to restore the real condition and give pricing advice (of course, buyers and sellers can also freely bargain). Accurate and scientific assessment only on the one hand, in the profit model, the platform model and the difference model also represents two completely different interests: the traditional distributor of the difference model based on a single transaction information opaque, and the deeper the opacity, the greater the profit space. So the distributor must be to some extent to the buyer and seller information isolation, and even the use of adjustment odometer, private renovation and other improper means. and platform mode, platform revenue mainly reflects the service fee + transaction fee, the income scale and market overall transaction size match. In the long run, only the whole market is bigger, the cake of the platform side can be divided more, this causes it to be more cautious in short-sighted behavior.

3, to the intermediary, "everyone car" to the maximum compression of intermediate links, so that buyers and sellers closer, while the transaction costs lower. Professionalism and trust are always the key factors in determining the length of the second-hand market trading chain. Because the buyers and sellers are not knowledgeable, this inevitably requires a professional ability to exist intermediary. But if the intermediary is too strong, it becomes a manufacturer of asymmetric information, thereby damaging the trader's trust in the market. "Everyone car" took a compromise, only to the two sides of the transaction output professional services, but not to participate in the transaction itself, the buyer and seller free matchmaking.

Of course, everything has its advantages and disadvantages, and the world has no perfect model. "Everyone car" mode from the good side, the capital occupies light, scalability more strong, cost advantage is obvious, and the owner during the listing can still be free to use the vehicle. From the disadvantage, it is only in the local scope of matchmaking transactions, while the owner of the ship's shipping cycle will be relatively long. So in essence, "Everyone car" is a price-sensitive market. "Wait 10 days and half a month and earn ten thousand or twenty thousand more, which is probably the preference of most Chinese people," said Li Jian, CEO of "everyone's car".

"Everyone Car" company was established in May this year, the current team members less than 30 people, has won the red point of the 5 million dollar a round. Founder Li Jian has been Baidu's history of the youngest product director, and successive 58 with the city Vice President, Microsoft Asia Research Deputy Dean and other positions.

According to Li Jian, they currently completed testing of more than 150 vehicles, the absolute number is not much, but has gone beyond some of the physical store mode of peer. And they have a good performance at this point when their peers are generally having trouble getting personal car feeds.

Foreign reference to similar companies, with the United States beepi.com. The company and "Everyone Car" was set up only in front and rear feet, and a round of financing, happened to be 5 million dollars-indeed, the world hero, alike?