GoMechanic, an automotive service and maintenance startup has launched its new range of Extended Warranty Packages targeted for the passenger vehicle market.
The company is introducing 5 Unique Warranty packages, including an Authorised Warranty, 360-degree Protection, Engine Warranty, Suspension Cover, and Brake Warranty. These packages will be introduced across more than 60 cities in India with price starting at Rs 200 a month.
It aims to offer coverage of the crucial systems, including engine, suspension, brakes and some other major systems, addressing the ever-increasing fear of car owners about maintenance and wear and tear of their car’s systems. Their package also covers consumables and labour costs, and wear and tear. The extended warranty will also offer Free Roadside Assistance (RSA) if the user is stranded anywhere where GoMechanic has operational services.
Rishabh Karwa, co-founder, GoMechanic, said, “Around 70 percent of car owners who bought warranties from manufacturers (OEM), were not able to use it as the parts which needed those policies did not cover service. We have received multiple requests from our users for a peaceful long term car ownership plan, which goes beyond the warranties offered on new and used cars today. So, after post-year-long research and testing, we are offering our Extended Warranty plan for users looking for hassle-free car ownership. Our approach is flexible and affordable. Users can handpick the type of warranty, whether they are a mile muncher or an occasional driver- we have the exact extended warranty plan for them.” he added.
Till date, GoMechanic has raised $61 million (Rs 473 crore) and services more than 50,000 vehicles every month. Responding to a query on the company’s presence, Karwa said, “As of June 2022, GoMechanic and its network of workshops are present across more than 60 Tier-1 and Tier-2 cities across India, like Delhi NCR, Mumbai, Pune, Chandigarh, Kolkata, Indore, Gandhinagar, Ahmadabad, Hyderabad and Bangalore. Additionally, we are also planning to diversify and expand to more Tier-2 and Tier-3 cities in the coming months.”
As per the company, its Extended Warranty packages are compatible with all Indian popular car brands and models. These cars (which apply for Extended Warranty) undergo an exhaustive set of checks before getting approved. If the car passes the check, it gets warranty coverage with no restrictions. The warranty is flexible, and customers can select the type of warranty they require for their vehicle and can be availed yearly for as low as Rs 999 with no-cost EMI option.
Prakhar Aatre, Head of Product Development said, “During the initial survey phase of development, we could pinpoint over 5000 cars in our database that were eligible for Extended Warranty. This is because of the fact that we maintain a comprehensive service record of every car we take in, and data helped us offer 100 percent digital claims with a 90 percent approval rate.”
According to GoMechanic’s in-house research, 65 percent of car owners are dissatisfied with the Extended Warranty Services because of the lengthy claim process and lack of transparency. However, 70 percent of users preferred warranties covering wear and tear, critical systems, and emergency roadside assistance.
Interview: Rishabh Karwa, Co-Founder, GoMechanic
What is the average ticket size for customers and the most popular services demanded?
The Average Ticket Size for a GoMechanic car service is Rs 8,000 and the most popular service availed is Periodic Services.
What are your future plans?
By the first quarter of 2023, GoMechanic aims to get dense enough to expand with more than 250 workshops in Tier-2 and Tier-3 cities, bringing our total tally of more than 1,500 workshops in India.
How do you plan to bring onboard new mechanic partners? What are the welfare schemes available to your mechanic partners?
Every mechanic, technician and specialist across all GoMechanic workshops undergoes rigorous training and orientation programs that are in accordance with OEM industry standards.
We make sure that all workshops are standardised and well-equipped and has introduced a unique 3-Tier training module that allows our mechanics to hone and elevate their skillset. These include:
– Elementary Workshop Training
– Intermediate Workshop Training
– Advanced Workshop Training
Apart from the above-mentioned tier-specific training modules GoMechanic also organises on-ground orientation pertaining to Technical Intervention and Core Soft-Skill Training at the workshop level.
NSDC – Skill India Program
All of our mechanics are trained to become well-versed with technology, and not just with tools but with our Workforce/Garage App as well where all mechanics are exposed to automated operations. We have consistently developed work opportunities and raised the skill level of unskilled labour/mechanics by providing these vital training and growth opportunities to every individual with GoMechanic.
PSOPS – Partner Stock Option Programs
Another tool in GoMechanic’s inventory for proactive help of its service partners/participants in the company’s growth is the Partner Incentive Plan. The GoMechanic Partner Incentive Plan has been designed to retain and motivate service partners/participants by providing them with the option to participate in the Company’s long-term value creation and benefit from the Company’s rise in equity value.
Workshop Onboarding Module
Providing a motivational push for our service partners/participants to become involved with GoMechanic and work with it for a long period, as well as participate in its future growth. We have received around 10K requests from the Workshop Owners to become a part of the GoMechanic family. With the Skill India Program & PSOP’s benefits to the partners & mechanics, GoMechanic is about to expand with 250+ workshops in Tier-2 and Tier-3 cities, raising their total number of workshops to 1500+ across India.
In the electric vehicle space, in addition to setting up charging stations and battery swap facilities, what are the other growth areas that GoMechanic can tap into?
Apart from Battery Charging and Swapping stations, GoMechanic is looking to venture into the electric vehicle service, spares and maintenance space, for both private and commercial vehicles.
Please share the list of all your partnerships and their intended purpose.
GoMechanic has a strategic partnership with Exxon Mobil for Engine Oil and consumables. We have also recently partnered with Revolt, Everve and Battery Smart for its EV initiatives.