Used car retailing platform Spinny sacked 300 employees, know what is the reason?
[ad_1]
Used car retailing platform powered by Tiger Global Spinny has laid off nearly 300 employees, mostly from the Truebill and Spinny Max teams, in a bid to cut costs. These layoffs were announced on August 2 during a town hall meeting organized by co-founder and CEO Neeraj Singh
company statement
The company said in a press statement, “We are merging our budget and luxury offering platforms, Truebill and Spinney Max, with our master brand Spinney. This will enable us to offer customers a wider range of cars at various price points and make it easier to find the right car for their needs.
Decision taken keeping in view the need and demand of the company
The statement said, “We have seen a sharp rise in the demand for reliable, budget-friendly cars as most people have resumed work from the office. By dividing our inventory of cars into different brand platforms, we were sometimes unable to provide enough choice to such customers. With this integration, we should be able to serve the needs of these customers very well.”
Aims to strengthen Spinney’s go-to-market business model
The business restructuring aims to strengthen Spinney’s go-to-market business model, reduce costs and improve the company’s margin profile. However, this will impact around 4.5% of the total workforce as the company is consolidating its operations under a single brand.
In 2020, Spinny bought Tubile
Spinney’s earlier expansion plan had led it to buy Mumbai-based rival Truebill in 2020. The move was taken to strengthen the Spinney’s position in the budget-vehicle segment, which reflects the competitive dynamics of the used automobile industry. Due to the high ticket cost associated with luxury automobiles, the segment deals with pre-owned luxury vehicles from premium manufacturers such as Spiny Max, BMW, Mercedes and Jeep, giving the firm access to larger transaction values. Spinney’s move into the luxury category has allowed the company to reach a new customer base looking for a quality pre-owned luxury automobile.
[ad_2]
Source link
