Hyderabad: India’s first self-drive mobility platform, Zoomcar, is seeing growth across its key markets including Hyderabad. The city is among the top three markets for the company across the country and will continue to grow in the coming years, Zoomcar co-founder and CEO Greg Moran, told media.
The company’s ZAP Subscription model, a flagship fractional sharing programme, allows one to subscribe to a car on a monthly basis and have the flexibility of having new car whenever one wants. ZAP Subscribe is an extension of the existing ZAP programne that enables individuals to subscribe to new or existing cars at a fixed monthly fee. The subscription model will help introduce additional flexibility and convenience for individuals while also providing easier access to a vehicle.
He said, “We have launched the Subscribe programme a couple of month and we already have 100 subscribers in Hyderabad, of the 1,000 subscribers across the country. The model is hyperlocal and community-based. Subscribers can let other users use the vehicle when they are not using it, bringing down the subscription cost. Bengaluru leads in overall subscriptions and Hyderabad is the second largest market. Western part of Hyderabad had been early adopter and Secunderabad is also catching up fast. In next one year, we anticipate 10,000 cars nationally across 15 cities in India, of which Hyderabad will be north of 1,500 cars, just from the Subscribe programme. With metro rail operational in Hyderabad, there could be fresh demand.”
When asked about the usage patterns, he said, “The company is seeing a mixed profile of car owners and non-car owners, broadly driven by those in the age bracket of 26-32. Majority of them represent nuclear families. During the weekdays, about 80 per cent is intra-city usage of the vehicles, while it is close to 70 per cent outstation usage during the weekend. Majority of the subscribers goes for 24-month subscriptions, and 6-month subscriptions are currently low. Going forward, we will focus on scaling supplies rather than rolling new service offerings. Domestic market is huge to be tapped, and once India gets saturated, we will explore in Asia and Africa.”
The service is available across 30 cities with good traction seen in Hyderabad, Bengaluru, Mumbai and Pune. The company has OEM partnerships with Tata, Maruti, Hyundai and Mahindra Electric. The company is looking at 3x growth in terms of its revenues. Zoomcar is seeing faster growth in its business in Hyderabad, with 30 per cent growth in subscriptions, above the national average.
He further adds, inherently, India is a strong market for the company. The company has at least 100 line partners. Mahindra, Ford and Sequoia Capital are among the companies which have invested in the company. The company will be at least in 40 cities in the next few years, and over 75 cities in the bicycles sharing business. Currently, Zoom car offers bicycles in 10 cities across India, including Hyderabad.
“Till date we have almost 1,000 ZAP associates (customers) pan-India. Since the launch of ZAP Subscribe, we have 100 subscribed cars on Hyderabad roads. The programme is ideally subscribed by working professionals who understand the flexibility of having a car for a period of 6, 12 or 24 months for a lesser cost rather than owning a car. ZAP Subscribe also allows a customer to exchange the car after this period as per their choice. The subscription requires no down payment, no maintenance and limited damage liability,” he informed.
Zoomcar has about 500 electric vehicles of the overall fleet of 3,500 cars. This number is expected to grow over 2,000 electric vehicles in next one year. Electric vehicles could account for 20 per cent of the future fleet.
The company has raised $80 million so far, which will take care of the company’s expansion needs in the next 2-3 years. There wouldn’t be near-term fundraising requirement, he added.
Zoomcar introduced car sharing services in 2013 and cycle sharing services in 2017. With a focus on the mobile experience, the platform allows users to rent cars by the hour, day, week, or month. Cycles can be rented in increments of 30 minutes. Bengaluru-headquartered company also introduced the country’s first peer-to-peer marketplace for cars with the launch of ZAP.