In this case study, we will understand India’s first online car rental business model of Zoom car in a simple and easy way.
Overview Of Zoom Car
You can book the car on rental basis from zoom car and you will not get the driver, here you will drive the car. For example, If you are from Delhi and went Mumbai for a business meeting, if you are at the airport and want to go at your destination so you can book a car from Zoomcar and here you will not get the driver, you will drive it.
It is different from ola, Uber, Jugnoo business model because here you own the car for a particular time. Zoom car was founded in 2013 and it is a Bangalore based company.
Zoom car a self-drive rental company was started by two Americans, Greg Moran and David Back. They had completed their graduation from the same college and did their post-graduation from different business school.
Morgan and David met while studying at the University of Pennsylvania and completed their graduation from here.
After completion of their graduation, Greg Moran went the University of Southern California and David Back at the Judge Business School at Cambridge University to complete their post-graduation.
Initial Challenges to start Zoom Car
This story started, when Greg had an idea and he wants to start his career in the banking sector had a brach in India as well. Greg Moran visited India and explore it.
Initially, he also had an idea to make his career and start a company for the renewable energy space but when he reached India and realised there In India has a strong business potential for car rentals.
It was an also time when no other player in India was offering these types of self-driven car renting services. This self-driven car idea was very unique and received a good response in India.
Their business model had finalised but the next big challenge was to register this type of business in India according to rules and regulations of government. They had need of 50 cars in their own name, registered, owned and also they had needed of 5 offices in the whole state in which they could get a license.
And finally, they find a solution and tied-up with the local operating owner, those already had a licence and also ended up subleasing cars them.
They were getting trouble to work with yellow number plate licence that’s why they have a tie-up with different peoples. On that time in Banglore, there were 5 people who can do this.
They track all of them and finally the only person get to agree on this idea and that was Ramesh Tours and Travels. Ramesh Tours and Travels success story is also amazing we will discuss in-depth in another article. Ramesh Tours and Travels number plate comes under the VIP commercial number plate.
Business Model Of Zoom Car
We already mentioned above Zoom car is first online self-drive car rental company of India.
Zoomcar allows hiring cars according to your choice on rent for a few hours to days or to even months according to your requirement and Zoomcar term and condition.
Zoomcar owns almost 75% of the cars with the help of loans from banks and remaining cars take on lease from large companies like Avis Budget Group.
Apart from this Zoomcar also started a new initiative called ZoomCar Associate Program or ZAP.
In this programme, you can invest your money in either a Maruti Ritz LDI or a Maruti Swift LDI and you can get 30-month lease agreement with ZoomCar to lease the car to them.
In this business model of Zoom Car, they take 30% commission from the total revenue earned by the car.
And ZoomCar also gives 3% monthly minimum guarantee payment of the car ex-showroom price to ensure a baseline level of repayment also. After the end of the lease agreement, ZoomCar will return the car.
Are you still confused? then see above the business model of zoom car in the image that will explain in very simple steps.
Zoom Car Funding
Zoom car received $151.9M total funding amount in 15 rounds and their latest funding was raised on Jan 20, 2020, a Series D round of $30M from Sony Innovation Fund, and other existing investors
Zoomcar has first raised their seed funding in October 2013 and raised the total amount of $1.6 million from Barbara Judge, Nurzhas Makishev, Empire Angles, Basset Investment Group, Lloyd Thomas, FunderClub, Microsoft Accelerator.
Some Fact and Figures Of ZoomCar
India’s first online and self-drive car company.
Type Of Industries: Automotive, Rental, E-Commerce, Reservations, Transportation.
Total Number Of employee 251-500.
ZoomCar headquarters regions: Asia-Pacific (APAC)
Headquarter of ZoomCar: Banglore, Karnataka, India.
Last Funding Types: Series D.
Legal Name Of ZoomCar ZoomcarIndia Private Ltd.
Rides Daily- 3,000+ Happy Users- 48,00,000+ Total Km travelled till march 36,00,00,000+ which is enough for 470 round trips to moon Number of zoomcar 6,500+ Rating 4.7 out of 5.0 which is rated by 3,00,000+ customers over 10,00,000+ bookings.
As of March 2020, they are working in 40 cities of India including Hyderabad, Chennai, Delhi NCR, Vadodara, Pune, Chandigarh, Banglore, Kolkata, Mumbai, Indore, Coimbatore, Ludhiana, Mysore, Siliguri, Bhubaneswar, Trichy, Hubli, Udaipur, Vizag, Trivandrum, Nashik, Udupi-Manipal, Kochi, Patna, Ranchi, Guwahati, Calicut, Jaipur, Lucknow, Bhopal, Guntur, Surat, Madurai, Nagpur, Raipur, Vijayawada, Amritsar, Jodhpur, Mangalore, Ahmedabad.
SWOT Analysis of ZoomCar
ZoomCar was a first online self-driven car of India and this is a first-mover advantage.
They always focus on flexibility of their customer and provide all technical support when someone is taking a car on rent for example if you booked a car and that car breaks down on the way so, don’t worry ZoomCar will provide you assistance.
ZoomCar always focuses on the latest market trends and consumer behaviour according to the technology update.
Customer satisfaction of zoom car at this initial stage, they are failing to provide satisfaction to its customers.
Currently, they are working in 24 cities, they can expand their business in other cities also.
They are also facing competition from new emerging start-up and this is the biggest threat for the ZoomCar.
Government rules and regulation like leasing and age group also included in this.
Features Of ZoomCar
The first main feature of ZoomCar is that you can go anywhere in India because ZoomCars have All-India permits. You have to pay state entry permit and tolls for a different state.
ZoomCar prices include prices of fuel, you don’t need to pay extra for the fuel and if you need extra fuel then just fill up and give a receipt to ZoomCar they will refund the same amount.
You can take a car on rent for an hour, day, week and for the month.
You can also book your car offline also at ZoomCar office in your city.
Choose your car according to your budget and need. You can hire luxury cars also loke BMW, Audi.
You can pre-book the car weeks or minutes.
thanks for joining us you can also read business model of $47 Billon company WEWORK.
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