ZoomCar is India’s first car rental startup founded by David Back and Greg Moran in 2013 in Bengaluru, with an initial investment of $215,000. But how ZoomCar earns and what is ZoomCar business model.
They earns from renting cars for 1 hour, 1 day and even for 1 month, and this directly contributes to their revenue.
Table Of Contents
- About Founder and CEO
- What strategy made Zoom Car so popular in comparison to its competitors?
- How does Zoom Car earn?
- Future Aim
About Founder and CEO
It was founded in 2013 by 2 Americans David Back and Greg Moran, which is headquartered in Bangalore.
The legal name of company is Zoomcar India Pvt. Ltd.
The company’s key people are : –
Gerg Moran– He is co-founder and CEO of the copmany. Before starting the company, he also founded a USC Energy Club and he is the president of it.
Vinayak Hegde- He is Chief Technology Officer (CTO). He is responsible for the technology at the company. He have a good experience in working with companies like Speedera and Inmobi.
He is also the co-founder of Headstart Network.
Sudhindra Reddy – He is the Chief Operating Officer.
Before joining with the company, he worked in P&G for 8+ years, and also had 3 years of experience with DRDO in project management.
Manish Kumar – He is the General Counsel & VP Corporate Affairs.
Before joining the company, he worked in some of the biggest organizations of India like Snapdeal.com, ZTE Telecom, DLF Limited, Delhi Stock Exchange Association Limited and Yadu Corporation.
|Founders||David Back & Greg Moran|
|Chief Executive Officer (CEO)||Greg Moran|
|Chief Technology Officer (CTO)||Vinayak Hegde|
|Chief Operating Officer (COO)||Sudhindra Reddy|
|General Counsel & VP Corporate Affairs||Manish Kumar|
The founders of the company met each other at University of Pennsylvania, where they both graduated in 2007.
They both also attended a Business school but dropped out and moved to India for pursuing a venture in car rentals, but David Back resigned from the company and went back to US. Later in February 2013, they launched their first operation.
Here are some recent funding rounds: –
July 2019: 25 NCD worth INR 25 Lakh allotted to Srikanth Subramanian from Kotak
June 2019: 1,174 debentures worth INR 11.74 Lakh allotted to Mahindra and Mahindra
June 2019: 23,243 equity shares worth INR 11.54 Cr issued to Zoomcar Inc
April 2019: 200 NCD debentures worth INR 10 Cr allotted to Blacksoil Capital
April 2019: 100 NCD debentures worth INR 5 Cr allotted to Mahavir Dwellers
March 2019: 100 NCD worth INR 10 Cr allotted to Trifecta Venture Debt Fund I
October 2018: 100 NCD worth INR 10 Cr allotted to Trifecta Venture Debt Fund, 29,048 equity shares worth INR 10.16 Cr and 94,805 equity shares worth INR 33.17 Cr
August 2018: 2,858 NCD worth INR 99.99 Lakh allotted to Kapil Kailash Suneja, 5,716 preference shares worth INR 1.99 Cr allotted to Ajay Bahl and 2,858 preference shares worth INR 99.9 Lakhs allotted to Bonanza Trading Company
June 2018: 35,186 equity shares worth INR 12.31 Cr
May 2018: 250 NCD worth INR 25 Lakhs allotted to Trifecta Capital Fund
Currently the company had received the total funding of $116 Million.
ZoomCar business model is to provide car on rent and your experience with them begins with the convenience of online booking.
The cars listed on the website come with all India permits, Road Side Assistance (RSA), and include vehicle insurance
If you book a car from their website, you will be provided with many benefits like damage insurance, 24×7 roadside assistance, they offer flexible packages, fuel cost is included in the packages you choose and many more.
The company has offered more than 36 crores KM of rides to the customers and it owns almost 6500+ cars. And average daily rides by ZoomCar are 3000+.
What strategy made them so popular in comparison to its competitors?
They are market leader of the race. But have you ever thought what marketing strategy made them so successful and help them capture a huge market in comparison to its competitors like Drivezy, Ola, SelfDrive, Volercars, Mylescars, Revv, U Drive, Letmedrive, LeasePlan and Carzonrent?
Along with ZoomCar business model, let’s discuss the marketing strategy used by them.
ZoomCar is marketing-focused brand in which majority consists of performance marketing, which means the advertiser pay to the marketing companies when a specific task is completed like sales, click or a lead.
The company has a Customer Relationship Managing (CRM) team that helps them in increasing repeat transaction and the frequency of transaction.
The company advertise themselves in the cars they provide. They are advertising their brand name which make people recognize them, and the company’s biggest marketing campaign.
The company provided its best to the customer which helped them in their mouth publishing and get organic traffic around 50-55 percent.
As per the company, the curated and new age-related content helps them grow for which they had helped them in their brand awareness and for this they had partnered with FilterCopy, a YouTube channel which provide new age content.
Many brands spend a huge amount on marketing to attract influencers and get user-generated content, but they had grown organically.
How does ZoomCar earn?
ZoomCar business model and revenue model is direct and simple. They provide car rental service and charge you according to the package you choose.
They provide flexible packages which allows you to choose that for how many days or hours you want a car.
It allows you to choose your desired car and charge you according to it.
Their revenue in financial year 2017-18 was $19 Million but the company was in loss as they have more expenses in compare to the revenue. The loss they incurred in 2017-18 was Rs. 100 Crore. The current market valuation of the company is $100 Million.
Here is a video which will help you out to let you understand deeper about how ZoomCar earn.
They had launched a program in July 2016, which was Unnati by Zoomcar which allow employees to study and complete their higher education. For this company had tied up with Gandhi Institute of Technology and Management also known as GITAM University.
The company had announced that the employees has only to pay 50% of their fees and they will get all books, ID Card, marksheet at their home, as they will enroll in distance education course.
Here is a short summary about the company: –
|Co-founders||Greg Moran, David Back|
|Areas served||45 cities of India|
|Services||“Self-drive” car rental|
|No. of employees (as on april 2020)||824|
ZoomCar business model is unique which was executed well with proper management which lead to gain so much popularity and a large market capture.
They are the first car rental service provider in India. Currently, they are planning to expand its services in every part of India as they currently only work in fewer cities.
ZoomCar’s parent organization is Zoomcar Inc.
Zoomcar has all India permit and can be taken to any state in india.
The new one-way self-service facility allows a customer to travel from point A to point B which would enable customers to pick up a car from Zoomcar location from one city and drop it off at a Zoomcar location in another city.
It is a program in which everyone is allowed to share their car with zoomcar for a flexible tenure of 6, 12, 18 or 24 months.
Zoomcar works on the principle of “self-driving”. You will be provided with a car and you can roam anywhere within the period for which you have taken the car from them.
If this helped you learn anything, do let us know in comment section. And had you ever thought how PolicyBazaar earns. You may be thinking its simple, obviouly by selling insurance policy. Well insurance policy holds some part of revenue only.
Checkout what are sources of revenue here: https://indieseducation.com/eye-opening-way-of-earning-by-policybazaar