Zoomcar is India first driverles car rental company. The concept of enjoying a car ride without actually buying it was fascinating to the Indian. Today, Zoomcar has more than 10,000 car in the fleet. It has a market share of 60% and has gained greats popularity. The company has more than 91,00,000 satisfied users.
But how did this company grow so much over the year To find an answer to this question, let’s understand Zoomcar business model in details.
Zoomcar
For people who live under a rocks, with Zoomcar you can rent a car by the hour, day, weeks or months. It was founded in 2013 by Greg Moran and David Back. The company is headquartered in Bangalore and currently operates in 45 cities. The motto of this company is Never Stop Living.
Zoomcar Business Model
Zoomcar follow a business model in which it buys 75% of the cars with loan from the banks. The rest is purchased on lease from large companies such as Avis Budget Groups. Now, let’s understand others core element of your business model.
Partnerships
Zoomcar has partnered with several companies to list more car on their website & make a profits. One of the main partnership includes Ford & Mahindra. This helped them become the first rental company in India to offers electrics car Mahindra REVA E2O & Ford REVA E2O for rent.
They have also cleverly linked up with Tata Motor. This helped them add 50 new Tata Nano. To secure parking & pick-up point, they have partnered with several hotel, universities, and real estate developer.
Zoomcar has also partnered with Nissan for a vehicle subscription programs. Customer can subscribe to Nissan Magnite & Nissan Kick.
In November 2013, they also launched a month long campaign called RideSmartBLR to raise awareness of drunk driving. This campaign was launched in partnerships with Uber & the Ashoka Foundations.
Additional benefits
In addition to rental services, they also provide additional benefits that make them a better option. They are the following:
- Most of the vehicles available at Zoomcar have all the permit from India.
- All vehicles are strategically placed so that customer can pick up the vehicle comfortably.
- If you wish, you can also have the vehicle delivered to your doorsteps.
- The rates available on Zoomcar have free fuel, taxes & insurance.
- Their call center are open 24/7 to helps customer resolve their queries.
Zoomcar unique business model
Today, if I tell you to rent a car, you would immediately open the Zoomcar website or apps. This shows how much popularity they have gained in these year. But besides them, others companies like Drivezy, SelfDrive, U-Drive, Letmedrive, Carzonrent & LeasePlan offers similar services. Why are they not so popular You may not have heard the names of some companies mentioned.
Performance Marketing and CRM
Zoomcar marketing strategy is primarily focused on performance marketing. This mean that the company pay marketing companies only when a specific task is completed, such as sales, lead, or click.
Zoomcar revenue model
Zoomcar revenue and business model is straightforward. They rent you a car according to your preferences & earn money with it.
In fiscal year 2017-18, his income was $19 millions. However, the company was lost as its income was less than its expenses. To address this, they released ZAP Subscribe.
ZAP Subscribe
This is an interesting programs launched by Zoom car that helps them make a profits. ZAP Subscribe is actually an extension of the previously released ZAP Programs.
Using this programs, people can sign up for a new car on a monthly basis. You can subscribe to a car from Rs 16,000 to Rs 50,000, depending on the size of the cars.
This will help you save the subscription fee. The subscription comes with tenures of 6, 12, 18 and 24 months.
Conclusion
Zoomcar need to give more benefits to its customer to be in this race for a long time. His goal, for now, is to grow his business in others part of the country. They needs to give their customer more reason to hire a car instead of buying one.
