Uzbekistan’s e-commerce evolution: Marketplaces, classifieds, and BirBir’s platform with $10M investment
|23:00 / 10.04.202519,73310 min
Uzbekistan’s e-commerce sector is going strong. With online retail penetration still trailing behind neighboring Kazakhstan, the country’s digital economy is primed for innovation.
According to experts, Uzbekistan’s e-commerce market reached $311 million in 2022, a fivefold increase from 2018. This makes the country the fastest-growing e-commerce market in Central Asia. The sector’s rapid development is driven by multiple factors, including increased digital adoption, government support, and the emergence of large local players.
A recent analysis by KPMG forecasts a compound annual growth rate (CAGR) for e-commerce in Uzbekistan between 41.4% to 47.4% for the 2023–2027 period.
Notably, alongside the rise of major players in the traditional marketplace segment, 2024 also marked the arrival of a new player in the classifieds space — a sector that hadn’t seen significant innovation or long-term investment in over a decade.
This shift toward revitalizing classifieds as part of Uzbekistan’s broader e-commerce evolution is being shaped by growing demand for easy-to-understand and efficient tools for interaction between buyers and sellers. et, much of the country still relies on traditional purchasing habits.
BirBir’s founders, Alexander Pekin and Alexander Bayzarov, saw an opportunity: a horizontal classifieds platform that eliminates intermediaries and reduces entry barriers for small businesses and individual sellers. In a recent interview with Spot, the founders of the startup BirBir shared a striking example: Uzbekistan’s car market has undergone a dramatic transformation in just a few years. “UzAuto used to be the only car manufacturer in the country, creating a shortage of new vehicles. People had to wait in line to buy the car they wanted. Meanwhile, high import tariffs made foreign brands virtually inaccessible. In those conditions, used cars didn’t depreciate — they actually increased in value over time. Buying second-hand was easier than buying new,” the founders explained. “Today, more than 35 automakers operate in the country, offering market-priced vehicles with access to auto loans. In 2023 alone, 450,000 new cars were sold. The government plans to raise that number to 1 million by 2030. This shift is creating competition among distributors and increasing willingness to invest in promotion. At the same time, we’re about to see the rise of a more structured used car market — especially as trade-in programs begin to scale. Both trends create an opportunity for classifieds to emerge as easily accessible and user-friendly sales channels for both sectors”.
Overall, the launch of BirBir as a P2P classifieds platform signals a transition of Uzbekistan’s “hand-to-hand” trade culture into the digital era — redefining how people buy and sell goods in the region.
Since launching in September 2023, the startup has thrived, surpassing 500,000 users and securing $10 million in private investment — a major vote of confidence in a market dominated by informal sales via Telegram, street bazaars, and large marketplaces.
The app has consistently ranked among Uzbekistan’s most downloaded e-commerce platforms, standing alongside international names such as the partially blocked TEMU, and local giants like Uzum and OLX.
Betting on Uzbekistan’s digital shift
Alexander Pekin, a seasoned fintech expert who previously led transformation projects at Hamkorbank, and Alexander Bayzarov, a former edtech strategist, combined their expertise to create a convenient service tailored to local habits — classifieds platform optimized for direct, secure transactions, without the fees and restrictions imposed by traditional marketplaces.
“The role of direct interaction between people cannot be underestimated. Classifieds, by their very nature, are built on direct transactions between parties—whether individuals or businesses. The best metaphor for classifieds is a bulletin board. Once upon a time, these boards could be found at bus stops and building entrances, where anyone could post an ad to sell something or find what they needed.”
Why classifieds, not marketplaces?
While e-commerce giants like Ozon and Yandex have expanded in Uzbekistan, their models are largely geared toward bulky businesses. Marketplace commissions, which can reach double digits, pose a challenge for smaller sellers. BirBir offers an alternative: zero commissions, full control over pricing, direct communication with buyers, AI-automated interaction.
“The classifieds model thrives on frequency and variety,” says Alexander Pekin. “Unlike a marketplace, where inventory is limited by logistics and supply chain constraints, BirBir allows anyone to sell anything — from second-hand electronics to real estate — without intermediaries.”
The traditional classifieds model is straightforward and asset-light: no in-house logistics, no warehouses, no centralized inventory. Monetization is primarily driven by advertising tools that help users boost visibility for their listings. This seemingly simple revenue model can potentially deliver higher profitability than marketplaces.
Overcoming barriers: Payments, trust, and digital literacy
For all its potential, Uzbekistan’s classifieds sector faces significant hurdles:
Scarce digital payment adoption rates: Many transactions still rely on cash, making digital services and fintech integrations crucial.
Consumer trust issues: Fraud, fakes, and counterfeit goods in informal online sales channels push some buyers away, undermining the industry.
Regional disparities: While cities like Tashkent and Samarkand are embracing e-commerce, rural regions lag behind, requiring tailored approaches.
BirBir is tackling these challenges head-on. The platform is now integrated with Telegram, Uzbekistan’s most widely used messaging app, allowing users to list items and communicate seamlessly to negotiate the details of the deal. Future plans include digital payment solutions, delivery, and an AI-driven trust rating system to reduce fraud.
The win-win model
BirBir (which means “one-one” in Uzbek) isn’t just another classified platform — it’s a peer-to-peer service designed to facilitate fair and direct transactions. Whether it’s selling a used smartphone or car, renting an apartment or offering freelance services, BirBir gives users a streamlined way to connect and transact without middlemen.
The platform spans a mobile app, website, and chatbot, making it easy for anyone to list, browse, and negotiate deals in real time.
A horizontal approach to classifieds
Unlike classifieds that focus on a single vertical such as real estate, cars, or unique and luxury goods, BirBir takes a horizontal approach — a single platform for everything. Users can buy and sell anything from everyday essentials like clothing and electronics to high-ticket items like vehicles and apartments.
“This broad-spectrum model makes the platform dynamic. High-frequency transactions (like fashion and gadgets) keep engagement levels high, while big-ticket listings (like real estate and cars) drive long-term value,” explains Alexander Bayzarov. “The result is a platform that’s relevant for daily needs, yet indispensable for life’s major purchases.”
Developing talent for a tech-driven future
Uzbekistan’s tech ecosystem is still developing, and local talent remains in short supply. BirBir aims to address this gap by not only hiring but also training local developers, creating a pipeline of skilled professionals for the region’s growing digital economy.
At the same time, the market — as the founders point out — continues to show unprecedented momentum, making it clear that Uzbekistan is well-positioned to become a tech hub with the infrastructure and vision to produce the next generation of unicorns.
