Car rental business: Zoomcar business model

Zoomcar business model
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The environment is dynamic in nature and it keeps on progressing with some new innovations and technological advancements. You might remember those moments when people use to travel far places on public transports, you may have experienced the same.


But with the progress and people's attraction towards convenience and comfort, they like to prefer private mode of transportation rather than public vehicles.


This strong need for private transportation gives a kick-off to the car rental business and when we think of hiring a car for traveling, the first brand that strikes our mind is Zoomcar. And today, we will reveal the complete Zoomcar business model with a brief glimpse of how Zoomcar earns?


Gone were the days when people use to rely on a driver, who owns a car and will drove them to their destination. That driver uses to charge a separate fare for his driving service and another price for the car as a type of traveling cost. But, with the launch of Zoomcar, it gives an emergence and acceptance for self-drive cars that were not present earlier in most of the parts of India.


It gives ease to the travelers to book a ride from their application or website by exploring the different cars and charges imposed by them as per the type of car. And after selecting a suitable ride you have to fulfill the minimal formalities levied by them. After the completion of their array of formal responsibilities, you can get ready to explore the travel destinations with your family and friends, with complete privacy.

About: Zoomcar

Zoomcar was started in the year 2012 by Greg Morgan and David Back with an aim of integrating technology and travel service under one roof. Their strong emphasis was on delivering a remarkable traveling experience with the feature of convenient ride-booking for the aspirants from their comfort zones.


And today it is a leader in the car rental business that is serving in more than 40 cities all over India. Now, it's time to grab some insight into its features and how it actually works?


Zoomcar tries to provide a simplified car hiring experience that was earlier dominated by touring drivers. It showcases the complete package of flexible charges with all the advantage which a user is going to experience when booking a car from them. They provide a wide range of hatchbacks, sedans, and SUVs under one platform.


The car rental business was not so plush earlier but with the arrival of some of the great self-driving business models, it becomes really convenient for travelers to book a ride from their phones. Now, let us jump to our main topic Zoomcar business model for deriving an essence of how Zoomcar earns.

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Zoomcar business model

The Zoomcar business model works on a strategy of a subscription model that is further categorized as short rental and long time rental. They feature their platform with different categories of cars and market a specific range of cars with a particular price range.


They allow you to enjoy short and long trips with different cars like a price for the hatchbacks starts from Rs. 70 Km/hr, sedan starts from Rs. 95 Km/hr, SUV starts from Rs. 100 Km/hr and luxury segment cars make you pay from Rs. 250 Km/hr and above.


Now, you might be thinking that the cars that Zoomcar is providing for travelers is owned by them or not. If they are owning those cars they need to spend a lot in purchasing those cars as an investment but they have to strategize their investment in such a way that helps in lowering their investment cost.


Some of the cars are owned by them and some of the cars are secured by them on a lease basis. Leasing some cars would definitely help them to prevent paying a big amount that is required while buying a car.


Apart from this, Zoomcar holds a two-way business model that allows the customers to book a car from their application or website by simply fulfilling some of the legalities listed below:

  • After selecting a car the users have to upload a picture of their driving license and share it with them.
  • After the approval in around 20 minutes, you will be intimated with the location of the car and now you are ready to go.

How Zoomcar earns?

If you are a Zoomcar user, you would definitely be knowing about how Zoomcar earns? It showcases a user-friendly mobile application in which different cars are arranged in different categories with the cost of the booking.


And if you want to book a car for a short trip then you have to fill in all your details about the pickup time and the drop off time of the car. After completion of details, Zoomcar will charge a security deposit for the safety matter that will be returned to you after your trip.

You will be paying the complete amount as a part of the fare and traveling cost as per the charges levied by them.


They also look for the subscribers who are willing to go for the long term, then their car subscription plans start from Rs. 13,000/month. Apart from this Zoomcar widely gives offers to its customers in form of discounts and other benefits. This was the simple revenue model/ how Zoomcar earns.


Take away

From this reading, we develop knowledge about the emerging self-driving cars business and how Zoomcar is leading in this sector. The Zoomcar business model depicts a clear idea about its work structure and conditions. Apart from this, we got a glimpse into how Zoomcar earns from its short and long subscription plans.

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