OLX Autos LatAm

OLX Group (Prosus/Naspers subsidiary) launches OLX Autos car-buying operations across Brazil, Mexico, Argentina, Chile, and Colombia simultaneously. Model: buy cars from consumers at a fixed instant price, recondition, sell online. 800+ hired in Brazil alone. Hundreds of physical inspection centers opened. Prosus commits $500M globally to the OLX Autos initiative to compete with Carvana-model used car platforms.

OLX Autos reports severe unit economics deterioration across all LatAm markets. Margin compression accelerates as Kavak aggressively undercuts buying prices. Inventory holding costs and refurbishment expenses exceed revenue per vehicle. Operations bleed cash at $50M+ monthly burn rate.

OLX Group begins first wave of workforce reductions across LatAm as market conditions deteriorate. Approximately 300+ positions cut in Brazil and Mexico combined. Operational consolidation signals internal recognition that 5-country simultaneous expansion strategy has failed.

OLX Group announces closure of all LatAm car-buying operations in July 2022 — just 7 months after peak expansion. 800+ employees affected in Brazil. Hundreds more across Mexico, Argentina, Chile, Colombia. Prosus writes down the investment. The 5-country simultaneous launch produced no market position, no sustainable unit economics, and no path to profitability against Kavak's operational moat. The capital was real; the competitive advantage was not.