JSE-listed Transaction Capital, the owners of SA Taxi, announced today that South African online car marketplace WeBuyCars is eyeing global expansion after setting up shop in Morocco.
WeBuyCars is South Africa’s trusted trader of used vehicles.
Transaction Capital announced that WeBuyCars recently completed an organic expansion into Morocco and is considering international expansion opportunities in selected markets.
“WeBuyCars’ recent organic expansion into Morocco is the first step in our international expansion aspirations. We will continue to explore further expansion opportunities in select markets,” said the company.
Transaction Capital Motor Holdco (Pty) Ltd (TCMH) acquired a 49.9% non-controlling interest in WeBuyCars (Pty) Ltd and accounted for the investment as an associate with effect from 11 September 2020.
On 3 August 2021, TCMH increased its shareholding in the WBC group (WeBuyCars), following which TCMH holds a controlling shareholding of 74.9% in the issued shares in the WBC Holdings (Pty) Ltd (WBC Holdings).
WeBuyCars continues to disrupt used vehicle ownership and trade in South Africa, through a unique combination of vehicle trading via its e-commerce and physical infrastructure, finance, insurance and other ancillary products.
As a leading mobility platform, this uniquely composed offering, which combines a convenient, trustworthy and satisfying customer experience with competitive pricing, drives WeBuyCars’ brand value.
“The outlook for the used vehicle market in South Africa is resoundingly positive. In South Africa, a total of around 11 million passenger vehicles are in circulation,” noted Transaction Capital. “This vehicle ‘car parc’ has grown steadily, increasing the overall market by 3%6 to 5%6 per year over the last decade.
“Structural support for this resilience and future growth includes cash-strapped consumers trading down to more affordable used vehicles, a trend given momentum by the economic implications of COVID-19.
“In addition, mobility trends show that more people are moving from using public transport and being passengers in personal vehicles to owning their first car, with vehicle ownership an aspiration deeply rooted in South African culture. Trading across the whole parc, including older used vehicles, positions WeBuyCars to benefit from the South African population’s shift into private vehicle ownership.”
During half year 2022, WeBuyCars launched our largest vehicle supermarket at the Dome in Johannesburg, with a capacity of 1 125 bays, and a smaller dealership in Polokwane with 220 bays.
“This is in line with our geographic expansion strategy to establish physical dealerships across South Africa, which will vary by size depending on the size and demand of the town, ranging from our large vehicle supermarkets with more than 800 bays in major centres to dealerships holding less than 200 vehicles in small centres,” said Transaction Capital.
“In the next 12 months, we plan to introduce a further three dealerships in various locations across South Africa. This strategy is augmented by our newly designed buying pods, which are conveniently located in high traffic areas such as shopping centres.”