Times are bad

[quote=JimbeamofNRT,Nov 17 2023, 04:02 PM]
Cazey Tan

Digital Marketing Enthusiast | LinkedIn Certified Marketing Insider | Hustling In Progress
11mo
https://www.linkedin.com/posts/cazeytankarc...7893466112-1eyE

I'm dumbfounded by this decision by Carsome.

After raising almost USD 300 million in series E funding, what can possibly go wrong for this 1st Malaysia unicorn tech company?

Laying off 10% workforce might not be enough.

Over the next quarter, we could see more layoff coming from Carsome, all because the top management doesn't know what to do with the money from investors.

Here are a few top reasons why Carsome dominates on paper, but not the car industry market overall.

1. Too focused on used car market transactions

Everyone knows that cars are depreciating assets. The longer the car sits in the showroom, the lesser the value of the car.

Expanding their operations will not help much in the profitability of the company, unless they can sold off a trade-in car within a month of being trade-in. Totally reliant on this sole system puts them at risk of slow growth and not meeting investors expectations.

2. Carsome did not expand into other car business.

With the amount of money raised, I would've expected Carsome to dive into various car business such as rental car business or subscription car models like SoCar and GoCar.

Having these businesses in place can allow a steady flow of cash into Carsome's finances and generate a healthy financial yearly income.

3. Untapped new car partnership market

Someone needs to be a bit creative here. New car market partnerships have a lot of potential to drive more growth and sustainability in the long term.

Partnerships such as rental car subscriptions or rent, marketing, reviews, tests or even promotions can help Carsome to become a dominant player in Malaysia. But I just don't see it happening.

Recent acquisition of iCarAsia and WapCar could drive this potential but the question is, will they do it?

4. Wrong Brand Ambassador for Carsome

Seriously, I facepalm myself for this one. Eric Cantona? Are you kidding me? Is this football or someone related to cars?

Why not getting someone who knows cars? Like retired or current F1 drivers? Kimi Raikkonen, Fernando Alonso, Lewis Hamilton, Seb Vettel etc?

5. No focus on service centers.

Service centers are a huge plus points and it's a must have if you have such amount of money to expand your business. Plus, it can generate good income as well, by qualified trained mechanics.

Sadly, despite all the hype surrounding Carsome, I feel for those who will be laid off after this.

One mistake too many by the top management cost the employees their career.

I seriously feel that if they're going to make it into profitability, these 5 suggestions are a must to implement, or otherwise, another player can take these and dominate the market.

What do you think of Carsome's decision to layoff 10% of their workforce?

[/quote]
no wonder ravis krik krik...

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Well said. Lucky I didn't join them

[quote=hoonanoo,Nov 17 2023, 04:31 PM]
Well said. Lucky I didn't join them

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Ya think service center business is very profitable?

I don't think so.

Rental car biz? Oh gosh no, they don't make much money either.

[/quote]
Short sighted management