Zoomcar, India’s first 100% self-drive car rental company, is bullish on growth. Having created a niche for itself with a fleet of 1,000-odd branded cars, it plans to expand aggressively in Mumbai and reach at least 25 cities with 3,000 cars. The company will add new vehicle options — such as more self-drive luxury and electric cars — and new pick-up locations to its kitty, say Greg Moran and David Back, its founders, in an interview with R Ravichandran in Chennai.
How big is the self-drive car market in India?
It is an emerging segment. There are nearly 3,000 cars under this model pan-India. however, it is growing over 100% annually. Other key players are Myles (Carzonrent), Micar and Let Me Drive. Zoomcar has unquestionably the largest supply base with over 1,000 vehicles in its fleet across five cities.
How has the industry in general, and Zoomcar in particular, grown so far?
We created the segment in 2013. The industry has seen exponential growth since then — there were only 200 cars across India in December 2013. By December 2015, we expect to see nearly 7,000 cars in the market from the current 3,000. Zoomcar will add another 3,000 cars over the course of the year.
What are the factors driving growth?
For the vast majority of people in India, a car is out of reach. Offering cars by the hour or by the day democratises transportation by extending the benefits of car ownership down the income ladder. At the same time, by providing a convenient alternative to car ownership, it reduces the number of cars on the road — a desperate need for Indian cities where traffic and pollution are already at catastrophic levels.
India’s macroeconomic situation is going to spell the end of the chauffer-dominated model in the next few years. The compounded effect of falling vehicle costs and rising labour costs means the percentage cost increase of adding a driver to each trip is going up exponentially. Moreover, getting good quality drivers is tough and running background checks is a lengthy affair.
What are your plans for India when it comes to sourcing/purchasing cars and investments?
We have a variety of partners on the supply side and will continue to grow this base over time. We prefer to employ very capital-efficient models with respect to vehicle procurement. That way, we can continue to invest heavily in technology and products. This is our primary focus.
How competitive are you in terms of pricing?
We never claim to be the cheapest player in the market (in absolute terms). However, we firmly believe that we offer the best value for money when it comes to the overall service. Customers want convenience, flexibility and reliability, where Zoomcar leads.
Are you looking to raise funds from PEs?
Zoomcar is fortunate to have a tremendously supportive investor base. We have a diverse investor base located both in India and abroad. As we continue to grow, we will certainly look to partner value-add investors who can help bring scale to the business. However, there is nothing specific to say at this point.
For Updates Check Company News; follow us on Facebook and Twitter