Growth in Focus - WeBuyCars

Welcome to Growth in Focus, where we discover how leading South African companies find innovative solutions to business challenges. 

In a series of in-depth, insightful interviews led by the internationally acclaimed futurist and economist Bronwyn Williams, we explore the what,
when, how, and why of driving sustainable business growth.

Bronwyn spoke with Wynand Beukes (Chief Digital Officer) and Chris Rein (Chief Financial Officer) at WeBuyCars about the importance of scalability, experimentation, and the effective use of data.

After all, it's how WeBuyCars grew from running its business on a single Google Sheets document to running on a proprietary digital business platform.
By using technology to drive scale and data to make smarter decisions, WeBuyCars grew from 1.5 branches in 2016 to raising nearly  R1 billion ahead of
listing on the Johannesburg Stock Exchange in April 2024.

“We like the difficult stuff because that's where the opportunities are.”

Wynand Beukes, Chief Digital Officer of WeBuyCars

Scaling up with the help of technology

Chris Rein and Wynand Beukes have been with WeBuyCars for nearly 7 years, joining when the company had only 1.5 branches.

However, using Google Sheets to manage inventory, debtors, and creditors made it almost impossible to scale up the business.  

As Chief Digital Officer, Wynand realised that technology was key to driving the company's growth, and having an effective ERP system would play a foundational role. 

The decision, of course, was whether to buy a standard enterprise ERP system or create their own. 

Two principles guided that decision: 

Agility
As an already successful and agile business, WeBuyCars needed a system that would work how it required. It didn't want to adapt its proven processes to accommodate prescriptive software; it also wanted to control the software.

Data Control
WeBuysCars wanted to control the data pipeline and the data quality the system processed.

A standard enterprise ERP system could accommodate neither of these principles. So, in 2018, WeBuyCars created an IT team and built the platform it wanted. 

The results speak for themselves; as Wynand explains, “We don't have a hindrance on growing the business from a platform perspective. We can buy 100 000 cars in the next month. There's no stopping us from a technology perspective.” 

The role technology plays in WeBuyCars' growth

Smart decision-making - WeBuyCars owns a unique digital business platform by creating the software it uses. The platform is not licence-based or dollar-hedged; the company owns all the software and all the data it uses. 

This approach enables WeBuyCars to operationalise its data using AI and machine learning to create accurate projections and lead insight-driven decision-making. 

Freedom to experiment - With complete control of its digital business platform, WeBuysCars can explore and measure the success of new features and functionality in an experimental 'sandbox' environment.

Successful experiments are then quickly integrated into the system without downtime or business interruptions. This approach has allowed the company to scale efficiently, opening new branches and achieving record-breaking sales figures. In January 2024, WeBuyCars bought and sold nearly 14 000 motor vehicles.

Ensuring access to scarce IT skills

The 2024 ICT Skills Survey by The Institute of Information Technology Professionals South Africa (IITPSA) shows that 27% of employers currently lack AI and machine learning skills, and 32% anticipate future shortages. The report also highlights shortages in data science (19%), DevOps (20%), systems design (19%), and business intelligence (19%). Building, maintaining and 'experimenting' on a bespoke digital platform demands that WeBuyCars have ready access to critical IT skills whenever needed. 

So, to overcome this challenge,Chris Rein explains, WeBuyCars invested in an equity share of an IT company: "We're able to … control the flow of the right people into the business to help us with the development that's required."

Where WeBuyCars sees the best investment opportunities

According to Wynand, the most significant opportunity for WeBuyCars is to continue investing in its South African presence, including business properties: "We … feel that we can double the business in the next 5 years."
Chris and Wynand explained that WeBuyCars provides a service in South Africa that involves many consumer-to-consumer transactions across the "full car park."

While WeBuyCars buys and sells cars with 10 kilometres on the odometer to 20-year-old cars with 400,000 kilometres, only 7% of its stock is motor vehicles between brand new and 3 years old. From 3 years to 6 years, it's 20%. The bulk, 73%, of vehicles are within six years.

It can be argued that WeBuyCars has formalised the informal market of 6-year-old and older vehicles.

How WeBuyCars navigates economic challenges 

Regardless of make, model or age, every motor vehicle needs fuel and, often, asset finance repayments. 
This means, as Chris explains, that WeBuyCars must always keep track of metrics such as interest rates, fuel prices, unemployment, and even loadshedding.

The role company culture plays

WeBuyCars values company culture highly and diligently ensures that new hires fit into its unique business. The company has quickly grown its workforce from 350 to 2,800, investing heavily in leadership development and training. 
They hire enthusiastic individuals willing to learn the WeBuyCars Way rather than just industry experience to maintain their dynamic and innovative culture. 
Another reason WeBuyCars is so protective of its culture is that it believes the people make the business what it is. 
WeBuyCars wants to use technology and its digital business platform to reduce its ratio of vehicles to employees, growing business, but without replacing people with technology. 

What's next for WeBuyCars?

Wynand is excited about the potential of emerging technologies, particularly large language models and prescriptive analytics. 
"I think … interaction with platforms and our platform is going to change over the next couple of years."
By staying on the cutting edge of technology, WeBuyCars aims to continue improving its operations and providing exceptional customer service.
 

Key learnings from WeBuyCars

The story of WeBuyCars is a testament to the power of technology and a strong company culture in driving business growth. By building its digital platform, investing in its people, and maintaining an optimistic outlook, WeBuyCars is positioned for continued success. 

With parting words from Wynand: "From a digital perspective, we're just going to keep on doing what we do. Better. "