Today we will talk about India's first rental business model, the Zoom car. Yes, right after you hear this, online car rental models you can book a car on a rental basis from them and you will not get a driver, you will drive it. You may have a Ola, Uber experience. But if you are at the airport, you can book a car from Zoomcar and drive yourself, want to go on a date, or impress a girl and you do not have enough funds to buy a car and want to go for a date, you can rent car and get the best date. Ideally it is not for this use, but for corporate use.
But let me give you an example of how you can use this service from a Bangalore based company and it was founded in 2012 and started by two Americans, Bragg and David. The two graduated together and after graduating from different business schools, they decided to work on this business model. In India, if you want a taxi business. Then, you need a yellow number license plate and they were having some difficulty in getting a yellow number license plate and because of this they had to deal with different people and there were 5 people in Bangalore who could do this. They keep track of it all and agree on 1 person, namely Ramesh Tours and Travels. If you haven't noticed yet, their car doesn't have a normal license plate, it's yellow. One but it comes in a very special form, it is VIP Commercial Number Plate, now what does VIP Commercial Number mean? I would like to tell you another unique thing about it if you book a car from their website. Then, when you take a car from them, you become the owner. Ownership is transferred to you as if you are missing something. Then it will all be under your responsibility and you do not need any special license for driving, a general license will work. You don't need a commercial one and your business model was on a yellow number plate. I can't take it because I don't have a commercial license. I mean, I don’t have a license to drive a yellow number plate car and that’s the reason, they have already contracted with different people in order to make their business possible. If you want to do a normal business, you don't have to follow any government policies or rules, you don't have to follow many rules to do a normal business. But in the Zoomcar business model, they have to face a lot of difficulties as it requires a lot of paperwork and some approach to cross some rules and documents. What they have so far is 60% repeat customers. If you book a car from them and drive it, you have a 60% chance of becoming a customer again. They have more than 2 million happy users and users have traveled more than 200 million kilometers. And there are about 2,200 personal cars, of which 70% are owned by borrowing from banks and the rest are leased.
If you want to book a car from them, they have three different packages (Zoom Lite, Classic and XL). They all have their own special features like in some packages you get 5 kilometers per hour for free. The business model looked really amazing, I will tell you in detail after all how they make a profit and how they give you a car. We can clearly understand that you get this by booking a car and the cars are paid for by the banks and then they rent it out to you but recently they started a new business plan and this is their company making profit in just one year. It's under the green sign (making a profit) after the new model was launched recently, but how? They started a new car purchase service. If you want to buy a car for Rs 10 lakh, you have to pay a minimum down payment of Rs 2 lakh but you do not have to pay anything when buying from them. Long Term Rental Service Previously, it was a rental model for one day, two or a week, but now we are talking about 6 months for a year or 2 years. What happens when you book a car for 2 years? Think of a month of 300 days in which you have to travel for 15 days for office or 1 work day and rest for 1 day then your car is just unused now, if you have bought your own car you will get nothing in return No. If you have an unused car day and your car is on EMI, you will have to pay for those 1 day days but when they are purchased from them, they serve you as your car market and to list the cars on their website. Take advantage of the service, as they usually do, they take the car out of their place and they work on some commission basis they say it's 30%, their commission.
The total funding increased 103M in funding over 10 funding rounds. So far, as of October 2, 2013, they have had a seed investment of 1.6M, and if I talk about some recent statistics. Debt funding has increased to over a 3.6 million dollars and if you think of at least 2 percent conversion rate you will get an idea of their sales. I'm considering at least 2 percent. They don't even spend 10% of their funds in marketing they have an idea of organic expansion, and they don't need to do more. Now let's talk about the benefits of their business model, they have two plans- if you want to service without fuel, you can also take it up to 5 km. Suppose for free we want to go on a date, I drive 5 km from there. Or I booked a car for a show in a get friends for my friends but she didn't drive. Recently they parked and turned on the AC nearby and had a pleasant time, meanwhile the petrol will burn. But I'm sure they shouldn't drive more than 5km and then the car gave them back. Thus, there are a lot of people out there who are misusing this business model and you have to pay Rs.9 Every km. if you drive it beyond 5 Kms As i Told you before they have 3 plans, If you avail the Basic plan, You will get a 5 Km free and i you drove it 9 kms, then you to pay 9 Rs. for Every Kilometer and You are getting 5 Kms free every Hour and If you took the Service for 5 Hours, then you will get 25 Kms Free. Think about it. They will provide you with insurance, car assistance and you can take the car anywhere as they have an All India Permit for each car. You just have to pay road tax or toll tax. In the second state, everything else is covered by them if you drive 250 km per day. You are thinking that you will get it for free and you will be able to drive 250 km every day. This is also what you can do if you are traveling and if you stop and turn on the AC and sleep in the parking lot.
They also have some limitations and not everyone can drive their car. According to their analysis, people under the age of 20 are more likely to have an accident, they exclude people under the age of 20 in their business model. You need to upload a license and for some heavy vehicles, they also have age limits. You can also take an Audi from them or take an Audi with your friends and have a show off or a group of 4 can contribute to Audi and register themselves, must have some bookings it as a refundable amount or as a security for any missed. Now lets understand, How they are making Money First by the Rental Business and i would like to tell you the calculations for the Second one Rental Part is quite easy to understand Its Just commission basis by taking a car listing it on their Website. In India, We have a New rule that a Petrol car can Run For 15 Years Only and If you are planning to buy a new car and If you a person who changes things a lot like buying the latest Iphones, But if you go out to sell your car after 6 months, you won't get much in return For those people, This Business is Good. You can take the car on lease basis for 6 months and then one after another or you can also list their car on their website that I only drive it for 10 days and the rest of the site can list it for 20 days.In the last financial year, I made a profit of about 1 M dollars, finally they are in profit and personally I really like the business model and as a customer I have asked a lot of people, and some of my friends use it too and they are all satisfied that they Car Care Road mentions how good the support is, they take care of the place and they will give back. Basically I've heard a lot about their customer service. If they get 60% back customers, people are satisfied.
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