For the last few years, self-drive car rental market in India has been growing rapidly and one by one, there is handful of players in this segment. From Myles to Zoomcar to Revv, the competition is growing tough and customers are getting wider options to choose from. Here, we take a look at self-drive car rental concept in India as explained by Sakshi Vij, CEO, Myles.
According to the Cars Online survey conducted by Capgemini in 2014 across 10000 respondents around the globe, it was observed that 59% Indians looking to buy a car were open to the idea of an alternative mode of ownership. This was primarily because of the need of greater Flexibility, convenience and lower financial burden. The average usage of a car in a year is less than 150 days. Over 200 days a year a personal car sits in your garage depreciating in value and appreciating in cost owing to the maintenance and parking requirements.
“We spotted an opportunity to disrupt the personal car ownership market. The aim is to connect the user to a car. Offer commuters an alternative method of transportation which is cost-effective, saves time and based on need. The service is highly acknowledged by the customers and the brand is already observing a utilization of 75% for its fleet of 1200+ cars,” said Sakshi Vij, CEO, Myles.
One car from the self-drive car rental services can reduce up to 25 cars on roads. This is certainly going to help in two ways – first it will reduce the traffic jam on the roads and second, it will reduce the car overpopulation on roads. There are several firms which are operating in car sharing segment and they also help in reducing jams and the pollution, claims Vij.
Someone who buys a car for personal use, drives it for a maximum of 3 to 5 hours a day. It means an average of around 120 hours a month and 1,440 hours a year. This means 24 days a year. So why buy a car that you will not use even for a month each year. Self-drive car rental is one of the solutions, explains Vij.
“You could rent a car for as little as 2 hours or as long as 3 months. Additionally, we know that owning a car means a commitment to a single vehicle for at least a 3 years period in your city of residence. So as a consumer, there is flexibility to drive a Mercedes for date night, a Fortuner for a Roadtrip and a Maruti Swift for the everyday trips,” said Vij.
Myles is now looking at raising investments from PE funds. “The PE funds will be used for technology upgradation, customer acquisition and improving consumer experience. With the help of technology we are connecting the car owner to the user + ancillary services,” said Vij.
Myles started with 14 cars and 3 locations has grown to over 1200+ cars and 250+ locations with presence in 21 Indian cities and plans to ramp up their fleet to 5,000 cars over the next 1 year.
“In the next 4 years we would like to bring together a fleet of 50000 cars in 50 cities spread across over 5000 locations. We want to provide a Myles car every 400 meters in a city. We are currently a community of more than 150,000 Mylers. We hope to get around 5 million members in the next five years,” said Vij.
Myles provides diverse rental options depending on the nature of travel of the customer. A customer can rent a Myles car on hourly, daily, weekly and monthly basis through a web and an App platform. The rent starts at Rs 50/hr. for e2o and goes up to Rs 9690/day for a Mercedes E class, over 39 models of cars across 21 cities in India.