Zoomcar, India’s first fully self-drive car rental company, plans to foray into international markets and is strongly betting on their Zoomcar Associate Program (ZAP) for its next milestone. Recently, Zoomcar launched its one-way intercity travel program where a user can pick up a car from one city and drop it at another.
Since its inception in April 2013, Zoomcar is performing well in most of the cities in India with almost 9 lakh trips in 25 cities with a ticket size of about Rs 4000 to Rs 6000 on average. The growth and scale witnessed by Zoomcar has established it as a leading player in the Indian self-driven car industry. Zoomcar currently has more than 20 lakh registered users across India with 3000 fleet. Zoomcar’s ZAP (Zoom Associate Program) has served the company well where the company has managed to cover about 20 percent of its fleet with 600 registered users. The metro and non-metros contribute 80 percent and 20 percent to the entire profitable business respectively. Zoomcar, which has a team size of around 200 employees plans to increase its fleet size by 2x and, clock 2x revenue this financial year.
Greg Moran, CEO and cofounder, Zoomcar said, “We have conducted an in-depth research and have a decent sense of market knowledge in Asia and Africa. Our aim is to be in 20-plus countries in the next two-three years. To begin with, our first move would be towards Asia and then eventually get into Africa, which is an uncharted market. From the tech point of view, there is a huge opportunity in Africa as few companies have come out with unique innovation whereas the demographics are like India which again highlights a scope for a breakthrough chance.”
Zoomcar’s ZAP major revenue stream model will help the company achieve its target. Over next 2-3 years, Zoomcar is targeting to have 25,000 cars in 30 cities pan India for which its ZAP would account 85 to 90 percent of the fleet. The company is in talks with various state governments to solve the regulatory issues around having a commercial licence for a private car. ZAP allows users as well as other individuals to buy one or more vehicles, which can be leased at ZAP to operate on a revenue sharing model. ZAP provides monthly earnings to car owners and offers 25 percent off on all weekday bookings for the duration of 30 months lease. A hatchback has the potential to generate a net earning of 10,000 to 15,000 rupees per month after deductions for cost of service maintenance, fuel and GST if a customer lists the car on Zoomcar’s platform for 15 days.
Zoomcar’s IoT innovation, Cadabra, is a flagship full stack solution to transform vehicles into IoT-enabled vehicles. Equipped with Bluetooth and 4G cellular connectivity, Cadabra tracks several items of information and driver behaviour, including fuel levels, clutch position, harsh braking, inconsistent acceleration, seat belt usage and engine health, among others. The solution also offers the possibility of over-the-air updates (OTA), which has helped Zoomcar to add more functionality.