Zoomcar banks on ZAP model
|Source: The Hitavada Date: 16 Mar 2017 10:02:03|
SELF-DRIVEN car rental start-up Zoomcar on Wednesday said it would ramp up its fleet with marketplace model branded as ZAP and plans to hive off its own existing cars over the next 6-12 months.
“We have around 2,000 company-owned cars out of a fleet size of 3,000 vehicles across 17 cities in India. With ZAP model, we aim to increase the cars under marketplace model to 80 per cent by December 2017,” Zoomcar CEO, Greg Moran said today.
The company had aimed to increase its fleet to 10,000.
Moran said over the next six to 12 months, it would hive off its existing company owned cars.
The startup launched the ZAP model in the city today.
ZAP asks people to buy a new car and instead of keeping their car idle when not driving, it encourages them to put their car on Zoomcar to earn from renting to ease their EMI payment.
Zoomcar does not offer any direct financial support to buy the car and neither gives any minimum guaranteed return.
“We’ll be profitable at company level by this calender year,” Moran said. Zoomcar will expand to 30 cities by the next quarter from 17 now. Moran said company was adequately funded with total USD 50 million it had already raised from Ford Smart Mobility LLC, Sequoia Capital, Nokia Growth Partners and Cyber Carrier.