Mexico is finally seeing a startup bonanza

KAVAK, A MEXICAN startup, provides an elegant solution to a glaring problem: how to buy a used vehicle in a market that is both one of the world’s biggest and its most informal second-hand car markets. Few buyers trust a seller’s assessment of the good’s quality. Few sellers trust the buyer to cough up the money. Transactions often involve “meeting someone at a corner store and seeing how it goes”, says Alejandro Guerra, Kavak’s general manager in Mexico. On Kavak’s app people can buy and sell cars with the company acting as a trusted middleman.