Peach Tech Adoption In the Local Used Car Industry

Kenya has the most robust startup ecosystem in Eastern Africa, ranking 1st in the region and 62nd globally. In Africa, only South Africa is ahead of Kenya, according to the 2021 StartupBlink Ecosystem Index Report?(sorry Nigeria, looks like Jollof vs Pilau isn’t the only battle Kenya is winning. But Lagos is the top startup city in Africa, if that’s any consolation). But most startups are focused on fintech, healthcare, foodtech, and energy & environment. The ecosystem is projected to grow even bigger going forward.

Kenya is considered a future tech superpower with a rapidly expanding tech startup ecosystem. As the startup scene in the country grows, industries such as the automotive sector that are still lagging behind will have to catch up. Especially now that digital demographics are entering the car ownership market. Studies show that more than half of millennials globally would rather look for retail information online than talk to a shop assistant.?

Both millennials and Gen Z cite convenience and price comparison as the top two benefits of online shopping. And convenience is one of the key pillars of Peach Cars.?

As an ecosystem that’s been around for decades, the Kenyan used car industry is dominated by two main business models: online marketplaces and local dealerships. While the former offers a more convenient customer experience, buyers on the platform are often forced to make decisions based on the limited information available. Not to mention buyers who’ve been swindled into paying for cars that don’t even exist in the first place. Meanwhile, customers that choose to shop at a dealership can view and inspect cars physically but often still rely on their own mechanical knowledge or expert opinions for assessing conditions. Getting access to a certified mechanic is inconvenient and costly; in fact, most people don’t even know how to perform basic checks before buying new vehicles.

Peach Cars was born out of the idea of bringing transparency to the car ownership process.?We knew that if we could create a blended customer experience (online and offline) for used car buyers in Kenya, we would have built a better way to buy and sell locally used cars.

Built around the idea of transparent information sharing and quality locally used vehicles, Peach Cars has grown in the past two years to become one of the leading dealerships for buying and selling locally used cars. We pride ourselves in giving our customers a 360-degree view of the car they’re buying or selling so they can be able to make an informed decision. Transparency is at the heart of every interaction between our customers and our brand. But how did we get here?

A lot of it has to do with having an open mind about technology adoption throughout the entire business – from vehicle inspections to marketing to customer service.

Our customers can browse through our online listings, look through the features of the car, and then?schedule a viewing?for their preferred car before making a purchasing decision. We believe this offers a convenient and trustworthy customer experience for Kenyans looking to buy locally used cars. Combined with professional expertise (all our cars come with a complete inspection report), it makes it easier for our customers to buy locally used cars- an experience that could previously only be described as a “1000 ways to die.”

Additionally, car financing is another painful topic for many car buyers in Kenya. Many buyers have fallen prey to loan sharks who work in cohorts with unscrupulous dealers and brokers, who at the end of the day, only care about meeting their sales targets. Complete financing information is only given to “difficult” clients who insist on it. And even then, chances are they won’t be told about the hidden charges.?

Peach Cars doesn’t force particular financiers down your throat. Instead, we give you all the details about the different car financiers we partner with (both Tier I banks and microfinancing institutions) so you can make an independent decision suited to your financial situation.?

Interested in car financing??Submit your details?and our team, in conjunction with financing experts at?Money254, will be in touch to walk you through options.

For car owners looking to sell their cars, the process isn’t any different from that of car buyers. The experience is just as smooth and seamless. You can initiate the conversation?here?and a member of our team will take it over from there. After the initial conversation, we’ll schedule a prescreening and an inspection to assess the true condition of the car before listing it on our website.?We will check for any damage to the car, including scratches, scuffs and dents. We also look at its engine and bodywork to make sure they are in good condition. Then you can either sell the car on our website or leave it with us to push it for you not only on the website but also via our online and offline networks. Additionally, we’re developing a web app that will allow car sellers to send their car details and photos without much hassle.

Our inspection is done using the Peach “special sauce”- an Onboard Diagnostics System (OBD) and an engine check device that you won’t find in any other locally-used car dealership in Kenya. The engine check device uses Peach proprietary-built software that automates the inspection process to give our customers an accurate and complete overview of all the systems in the car. The data is collected into our database and comprehensive analysis run on it for a transparent view of the car’s systems. This includes the engine, gearbox, suspensions, steering, electrical, HVAC, and cooling systems. Our 225-point inspection system ensures that our inspection?methods are best-in-class and benchmarked against global standards.?

We are also looking to launch new hardware and software in 2023 that will enable us to have a near-fully automated inspection center.

FYI, Peach inspection services aren’t only intended for car owners looking to sell their cars, but also for people who want to know the true condition of their cars and independent buyers who’d like a comprehensive report before making payment to the seller (inspection as a service).?

As we aim to build a business around convenience and information transparency for our customers, it’s without a doubt that technology will play an integral role in it. Excited for the future!