Gone are the days, when someone who needed a car had to ask it from their friends and relatives. The trend of car rental comes in from the West where self-drive car rentals are pretty popular. In the past few years, the organized car rental market in India has witnessed a steep boom. The entry of international players has overhauled the business in this sector. With the organized sector differentiating itself from the unorganized sector in terms of its service parameters such as quality of service, reliability, trained drivers, larger fleet size and monitored prices etc., it witnessed the market leaning toward its side.
Self-drive car rental market in India is eyeing the fast lane and leading players like ZoomCar, Revv,etc seem to be shifting to top gear experimenting and innovating on the technological front. According to Ken Research, the Indian car rental market revenues will grow at a considerable CAGR rate and is expected to touch INR 800 billion by 2019.
Lets take a look at some of the players who are leading the car rental space today –
Founded in 2013 and headquartered in Bangalore, Zoomcar holds the distinction of being India’s first self-drive car rental company. It allows users to rent cars by the hour, day, week, or month. Its vehicle catalogue offers a wide and extensive variety of cars for self-drive in India, ranging from hatchbacks to SUVs to luxury sedans.
Zoomcar has recently raised $11 million from Sequoia Capital, Empire Angels and NGP. The company started its operation in Bengaluru and now offers self-drive car rental services in cities like, Mumbai, Delhi, Pune, Chennai, and Hyderabad. It recently introduced doorstep services in Mumbai and planning to aggressively expand across the country.
Revv was co-founded by Anupam Agarwal and Karan Jain, two experienced professionals with an experience of a decade each at McKinsey. They also home deliver the car to the user. Till now, the self-drive car rental companies have had parking lots from where a user picks up the car but Revv wants to make this bit easier as well.
According to Anupam, “Doorstep delivery is a global first: no other car rental company does this on pure-play basis. This model has some very significant implications,”. The other key differentiation in terms of the model is unlimited kilometres.
The company has raised a seed round with investors includes CEO of Myntra more than ten directors and partners from McKinsey.
The startup is a brainchild of IIT Bombay and NIT Allahabad alumni — Ashwarya Pratap Singh, Hemant Sah, Abhishek Mahajan, Vasant Verma, and Amit Sahu — JustRide is a technology aggregator in the car rental industry with the prime products being mirco and macro leasing of vehicles.
Unlike existing market players, JustRide is not the proprietor of the vehicles it rents. The company leases vehicles from individual vendors by providing them a minimum guarantee value.
It currently operates in Mumbai, Bangalore, Gurgaon and Pune. It has fleet of 120 cars and plans to expand to 1200 cars within 3 months.
JustRide has raised seed funding round led by IAN Co-founder Alok Mittal, Niraj Singh, Nikunj Jain, Zishaan Hayath, Punit K Goyal, Anirudh Damani, Rohit Chokhan, and Palaash Venture.
Carzonrent India Pvt. Ltd was founded in 2000 by Rajiv K. Vij and offers its services in 39 cities & 100 locations.
CIPL has aggressive growth plans and aims to build a fleet of 100,000 cars for its car sharing business, expand to 250 Indian cities and achieve revenues of INR 6000 crores in the next 5 years.
The company launched self-drive car sharing under Myles brand about 15 months ago and has acquired over 60,000 individual travellers who now use Myles self-drive cares for their local and outstation travel.
It acquired Ridingo this year, which is a Mobile and Cloud based solution provider of ride sharing.
Selfdrive.in, is another self-drive service provider operational in Mumbai, Pune and Goa.
The startup was founded in 2011 by Soham Shah. SelfDrive.in is one of the first such services in India.
Recently, the company has doubled its fleet of 175 cars with 21 different car models across nine car manufacturing brands starting from the smallest Hyundai Eon to Honda City to Merc S Class Limited Edition Limo to VW Beetle.
However, the market is not a cake walk for any single player to hold sway in the segment. There is a lot of competition in the market posed by other players.
What do you think? We’re already seeing instances where people are finding their cars to be redundant, what are your thoughts on the trend?