Guazi.com launches big trust-building project

15 Mar 2017

China’s leading used-car platform Guazi.com, backed by e-commerce giant 58.com, announced that it had invested 200 million RMB ($29 million U.S.) in a verification system for vehicles listed on the platform.

The system includes manual and data-driven assessments, a professional 259-point vehicle examination and a sales-history verification. Only vehicles which have passed these examinations will be listed for sale on Guazi.com. 

The move mirrors an identical 200-million RMB investment made by rival Renrenche.com in establishing its own “user protection fund” back in January (we reported here).

 The Guazi announcement made it clear once again that the big players in China’s crowded, used-car market are courting consumer confidence. For Guazi, these efforts have been hurt by recent allegations and legal action taken by rival Youxin ershouche, who have accused Guazi.com of planting negative media reports (we reported here).

Despite this, Guazi continues to pull away from Renrenche and Youxin in terms of brand awareness, according to a recent report by Millward Brown.

Guazi has been making big waves with recent sales and revenue records. It broke the barriers of 40,000 units sold, and 3 billion RMB in revenue in December 2016.

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Tom Marling

Tom is a PhD candidate in Chinese History at Hong Kong Baptist University, and former PR consultant in Mainland China. He joined the AIM Group in 2016 as a writer/analyst.

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