Eric Cheng is a prominent figure in the Southeast Asian automotive industry, best known for his pivotal role in the success of Carsome, a leading platform for buying and selling used cars. As co-founder and CEO of Carsome, Eric has been at the forefront of disrupting the traditional car trading market, leveraging technology to create a transparent, efficient, and customer-centric platform. His entrepreneurial journey is a testament to his vision, hard work, and determination. In this blog, we will explore Eric Cheng’s educational background, the founding of Carsome, the challenges he faced, and his company’s growth and success.
Early Life and Educational Background
Eric Cheng’s journey to entrepreneurship began with a solid educational foundation in business and technology. Growing up in Malaysia, Eric had an interest in both business and innovation, which guided his educational choices. He earned a degree in Electrical Engineering from Universiti Teknologi Malaysia (UTM), where he developed a strong technical background. His engineering education gave him a deep understanding of systems, problem-solving, and the importance of efficiency—skills that would later prove invaluable in building a successful tech-driven company like Carsome.
While his degree was technical in nature, Eric’s curiosity about the world of business and entrepreneurship led him to pursue a deeper understanding of business management. After completing his engineering studies, Eric further honed his business acumen through various ventures, and his passion for technology-driven innovation guided him toward the automotive industry.
The Founding of Carsome
In 2015, Eric Cheng co-founded Carsome, along with two other entrepreneurs, Sandy Sia and Andrew Li, with the goal of transforming the used car market in Southeast Asia. The region’s used car market was plagued by a lack of transparency, inefficiencies, and outdated business practices. Car buyers and sellers were often unsure about the quality and pricing of vehicles, leading to trust issues and frustration. Eric saw this as a massive opportunity to bring technology and innovation to an industry that had largely remained unchanged for decades.
The concept behind Carsome was to provide an online platform that could offer a transparent, trustworthy, and streamlined process for buying and selling used cars. The platform allows car sellers to get an instant price offer for their vehicles, while buyers can browse a wide selection of quality-assured used cars with verified histories. Carsome’s unique selling point was its ability to integrate technology to make the buying and selling process faster, safer, and more transparent for both consumers and businesses.
Carsome quickly gained traction in Malaysia, and Eric and his team expanded the platform’s offerings to other Southeast Asian markets, including Indonesia, Thailand, and Singapore. By focusing on simplifying the car buying and selling experience and incorporating inspection and certification processes, Carsome established itself as a market leader in the used car industry in Southeast Asia.
Business Ventures and Growth of Carsome
From its early days, Carsome leveraged innovative technology and business strategies to grow rapidly. The company’s core proposition was to address the major pain points in the used car market: pricing transparency, vehicle quality assurance, and the overall inefficiency of traditional car dealerships. Carsome offered an integrated solution that included:
Online Car Selling Platform: Car owners could easily list their cars on the Carsome platform, where they would receive an instant price offer based on real-time data and inspections.
Inspection and Certification Process: Carsome introduced a stringent multi-point inspection and certification process to guarantee the quality of vehicles sold on the platform. This gave buyers peace of mind, knowing that the cars had been thoroughly checked for mechanical and cosmetic issues.
Financing Solutions: Carsome provided financing options for car buyers, making it easier for them to secure loans and complete their purchases. This added value by removing barriers to purchase for a larger customer base.
Vehicle Delivery and Documentation: Carsome streamlined the process by offering convenient delivery and handling of all documentation, making the car-buying experience simpler and less stressful.
The use of technology was central to Carsome’s rapid expansion and success. The platform utilized data analytics to assess car values, predict demand, and ensure fair pricing. By incorporating data-driven decision-making, Carsome was able to build a highly efficient and scalable business model. The company’s technological advancements also helped it gain a competitive edge in a fragmented industry, allowing Carsome to reach a broader customer base and scale operations quickly.
Carsome’s focus on customer satisfaction and trust set the company apart in a market filled with uncertainty and hidden fees. The company introduced features such as transparent pricing and a 1-year warranty for cars purchased through the platform, further enhancing consumer confidence. This commitment to customer experience played a crucial role in Carsome’s rapid growth and success.
Challenges and Struggles
Building Carsome was not without its challenges. Like many entrepreneurs, Eric Cheng and his team faced a number of obstacles in the early years. Some of the key struggles they encountered included:
- Changing Consumer Behavior: The Southeast Asian used car market was traditionally driven by in-person sales, and convincing consumers to trust an online platform for such a significant purchase was a major challenge. Eric and his team had to work hard to educate customers about the advantages of using Carsome and build trust in their platform.
- Building Brand Trust: The used car market had long been associated with scams, unreliable pricing, and low-quality vehicles. Overcoming this negative perception required significant effort, as Carsome had to establish itself as a trustworthy, transparent, and reliable platform.
- Competition from Traditional Dealerships: The used car industry was dominated by traditional car dealerships and intermediaries. Carsome had to compete with these established players, who were often resistant to change and innovation.
- Logistical and Operational Hurdles: Scaling a platform that spans multiple countries and regions required overcoming complex logistical challenges. Managing inventory, ensuring consistent vehicle quality, handling customer service, and coordinating delivery across borders presented operational difficulties.
- Raising Capital for Growth: As Carsome expanded into new markets and sought to grow its platform, the company required significant funding to fuel its expansion. Securing venture capital and investment was a necessary part of the journey, and Eric’s leadership played a key role in securing the financial resources needed for growth.
Despite these challenges, Carsome’s commitment to innovation, customer-centricity, and technology-driven solutions helped the company navigate these struggles and emerge stronger. The team’s focus on transparency, efficiency, and quality assurance resonated with consumers, which allowed Carsome to overcome the hurdles that many startups face.
Key Successes and Milestones
Eric Cheng and the team at Carsome have achieved significant milestones over the years. Some of the key successes include:
- Regional Expansion: Carsome expanded rapidly across Southeast Asia, initially dominating the Malaysian market before entering Thailand, Indonesia, and Singapore. This geographic diversification helped Carsome tap into new markets and grow its customer base.
- Massive Funding Rounds: Carsome successfully raised millions of dollars in funding, attracting investors such as JD.com, Gobi Partners, and Goldman Sachs. This funding allowed the company to expand its operations, enhance its technological infrastructure, and improve its services.
- Digital Transformation of the Car Buying Process: Carsome revolutionized the way consumers buy and sell used cars by offering a fully digital experience, which has become increasingly important in the COVID-19 era. By providing an entirely online solution, Carsome met the needs of customers who prefer contactless, convenient transactions.
- Carsome’s IPO and Valuation: One of the major milestones in Carsome’s journey was its successful IPO (Initial Public Offering) on the Bursa Malaysia stock exchange. This move further established the company’s credibility and allowed it to access additional capital for expansion. Carsome’s impressive valuation reflected its position as a leader in the regional used car market.
- Growth in Trust and Customer Loyalty: Carsome’s commitment to customer satisfaction, along with its transparent pricing and vehicle quality assurance processes, led to strong customer loyalty and repeat business. The company’s reputation for fair and honest dealings significantly contributed to its growth.
Future Plans and Vision
Looking ahead, Eric Cheng has ambitious plans for Carsome. The company aims to expand further into Southeast Asia and beyond, tapping into new markets and scaling its operations. As the used car market continues to grow in the region, Carsome is well-positioned to lead the charge in digital transformation and innovation.
One of Carsome’s key goals is to continue enhancing its platform’s technology. The company plans to invest in AI, machine learning, and data analytics to improve its services further, making the car-buying and selling process even more seamless and efficient for customers.
Eric also envisions Carsome as a central player in the wider automotive ecosystem, not just in buying and selling cars but also in offering complementary services such as insurance, financing, and vehicle servicing. With this vision in mind, Carsome aims to continue transforming the automotive industry in Southeast Asia.
Conclusion
Eric Cheng’s entrepreneurial journey with Carsome is a shining example of how innovation and technology can disrupt traditional industries. By identifying a gap in the used car market and leveraging technology to create a customer-centric, transparent, and efficient platform, Eric and his team have transformed the car-buying process in Southeast Asia. Despite facing numerous challenges, Carsome’s success story continues to inspire entrepreneurs across the region. With Eric Cheng at the helm, Carsome is poised to continue its growth and redefine the future of the automotive industry.
