Droom Business Model | How does Droom make Money?

Droom Business Model | How does Droom make Money?

The automobile business is one of the world’s fastest expanding and evergreen industries, particularly in India, where it plays a significant role in the country’s economic growth. Customers who are enthusiastic about cars and bikes will gain most from the industry’s perception of various automobiles culture of the industry. Droom is an online marketplace in India where you can buy and sell new and used cars. Sandeep Aggarwal established Droom in 2014. Droom provides a large variety of automobile categories and also other all connected services such as warranty, insurance, finance.

A variety of elements influence a customer’s decision-making process when acquiring a vehicle, including price, performance, mileage, and vehicle ratings and reviews. Customers look for easy online platforms for buying and selling automobiles as the use of the internet and technology for activities such as shopping grows.

Droom is a renowned autosite that provides an online platform for the vehicle industry. This is a digital automobile platform that employs technology to facilitate end-to-end vehicle sales and purchases from the vendor to the buyer. Droom’s broad and thorough platform allows users to buy or sell a variety of vehicles, from bicycles to aeroplanes. Droom is the largest online automobile platform in India for buying both used and new vehicles, and is also the fourth largest E-commerce site, with an 80% market share of India’s online automobile transactions.

About Droom
Business Model of Droom
How does Droom Make Money?
Competitors of Droom

About Droom

Droom’s business began in Delhi as an online marketplace for old vehicles, but after three months, it expanded to include two-wheelers as well. The brand spread its services across 100 cities within a year. After another six months, the company began offering services such as roadside assistance, warranty, and insurance. They also expanded their services to include seaways, planes, bicycles, and other vehicles.

Business Model of Droom

Droom's Business Model

Droom’s tenacious business model was important in its growth and success. Let me first define what the term “business model” means before examining Droom’s business plan.

A business model is a form in which an organization is built, that supports the practicability of a product or a company and portrays how an organization operates and goes forward to achieve its aim. As a result, a business model encompasses all of an organization’s operations and regulations.

Droom’s business model is divided into four categories: business to consumer, customer to customer, customer to the business, and business to business. The business to consumer model accounts for the majority of its revenue (approx. 88%), with the customer to business and customer to customer models contributing 10%, and the business to business model accounts for the remaining 2%.

Value Proposition of Droom

A value proposition is a value that a firm claims to deliver to its consumers, and customers prefer to buy their products or services based on that value. Droom’s proposition of value is unique, consisting of pricing, trust, and transparency. It provides buyers with a low cost and large selection, while sellers have access to a large number of online shoppers, a full range of e-commerce services, and so on, allowing them to manage their online store at Droom.

Droom has become the first car gateway worldwide to house the entire ecosystem of the automotive, with additional elements such as price, finance, history, tools, and marketplace.

Droom provides its customers with a variety of ecosystem products and services which are mostly technology driven by combining, data science and artificial intelligence such as using the “ECO App” for getting vehicles’ inspection reports. It also offers purchasers a full circle trust score to verify that the sellers with whom they are engaging can be trusted.

Droom launched a pricing system for automobiles called Orange book value (OBV). It is the first company to introduce this feature in India. This assists dealers and consumers in determining the fair market price of automobiles. This is data-driven and unbiased. Consumers can also use this tool to see if a vehicle is available on the market. It also has Droom discovery, Droom assists, and Droom credit to help buyers and sellers.

Division of Customers in Droom

Droom’s target market is online consumers and internet users. In a larger sense, the company’s customer sector is classified into four categories: Buyers, Sellers, Dealers, Enterprises.

Droom has created four marketplace types to ensure harmonious and smooth buying and selling operations. It offers a variety of purchasing choices to meet the needs of each buyer, which creates a major trust factor.

Droom strives to be incredibly transparent. It allows sellers to upload an unlimited no. of listings and promote to a large audience on the internet, and it allows sellers to sell both used and new vehicles.

Droom offers dealers self-service accounts, such as StoreManager. Dealers can use this to run and manage their internet company from anywhere at any time.

Droom’s customers also include businesses involved in the automobile industry, it provides vertical enterprise solutions. It also offers a variety of effective advertising options.

Important Resources of Droom

Droom uses technologies such as AI, Machine Learning, Data Science, and Big Data in its core services such as customer assistance and the development of various tools such as OBV, and so on. These are the key resources of Droom. Labs of Droom are dedicated to using world-class technology apps to provide excellent user experience and user satisfaction.

The company has a customer-centred approach and its trained and talented team of officials reach out to buyers and sellers helping the organization reach a certain level of growth.

Client Relations with Droom

Droom focuses on establishing trustworthy and strong client relationships and strives to provide excellent customer support and management, that is its assistant tool: Droom Assist. This tool helps buyers and sellers with guidance and consultation services. It also helps in transactions of its customers by making them easy and transparent. Droom improves its relationships with consumers by providing security to their funds with the use of easily refundable tokens.

Major Activities of Droom

Droom encourages its services and features through marketing and promotional activities on several social media platforms such as Facebook, Linkedin, etc. It also undertakes researches at its AI labs to develop improvements that would enhance customer satisfaction.

How does Droom Make Money?

Droom mainly has four sources to earn revenue that are, Service fees, Premium tools, Subscription, and Advertisements.

The service fee is the main source of revenue, and this is charged on every successful transaction on the platform. This varies according to the vehicle type.

The subscription plan is offered to various big auto dealers, and the company provides them with online products and services.

Its premium tools include OBV, Droom credit, etc. Droom also earns a lump of money from advertisements as it advertises different auto brands on its platform. This also helps in doubling traffic on the platform.

Competitors of Droom

Droom faces major competition from companies such as Car24, CarDekho, OLX, and Quickr. Droom has several advantages over its competitors such as, it follows all the models of business and it is very efficient for buyers and sellers to get on the platform and use its services and provides an end-to-end service.


Recapitulating, Droom operates on a Business model, a plan that is well-integrated with technological advancements and a progressive model. It gives details to distinctive marketing activities. In the future, when automotive sales are expected to skyrocket, Droom will be facing tough competition, even though it has a big advantage overall.


What does Droom Company do?

Droom is India's first automobile e-commerce platform that allows you to buy and sell automobiles online.

How does Droom make Money?

Droom mainly has four sources to earn money that are, Service fees, Premium tools, Subscription, and Advertisements.

Who is the owner of Droom?

Sandeep Aggarwal is the founder of Droom.

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