Car rental firm Zoomcar plans of foraying into international markets with Zoomcar Associate Program (ZAP), said a statement. Company which recently launched its one-way intercity travel where a user can pick up a car from one city and drop it to another is looking to explore Asian and African market. “We have conducted an in-depth research and have a decent sense of market knowledge in Asia and Africa. Our aim is to be in 20-plus countries in next two-three years,” said Greg Moran, CEO & Co-founder, Zoomcar.
“Our first move would be towards Asia and then eventually get into Africa, which is quite an uncharted market. From the tech point of view, there is a huge opportunity in Africa as few companies have come out with unique innovation whereas the demographics are like India which again highlights a scope for a breakthrough chance,” he added.
Since its inception in April 2013, Zoomcar reported strong unit economics in most of the cities in India with almost 9 lakh trips in 25 cities with a ticket size of about Rs 4-6K on an average. Zoomcar currently has more than 20 lakh registered users PAN India with 3000 fleet.
Under Zoom Associate Program it manages 20% of its fleet with 600 registered users. Zoomcar offers more than 20 models covering hatchbacks, sedans, SUVs and luxury cars in majority of tier 1 and tier 2 cities. The metro and non-metros contribute 80% and 20% to the entire profitable business respectively. Zoomcar, which currently has a team size of around 200+ employees plans to increase its fleet size by 2x and, clock 2x revenue this financial year.
Company is of the view that Zoomcar’s ZAP major revenue stream model will help the company achieve its target. Over next 2-3 years, Zoomcar is targeting to have 25,000 cars in 30 cities PAN India for which its ZAP would account 85-90% fleet. The company is in talks with various State governments to solve the regulatory issues around having a commercial licence for a private car.
ZAP allows users as well as other individuals to buy one or more vehicles, which can be leased at ZAP to operate on a revenue sharing model. ZAP provides monthly earnings to car owners and offers 25% off on all weekday bookings for the duration of 30 months lease. A hatchback has the potential to generate a net earning of Rs 10,000 to 15,000 per month after deductions for cost of service maintenance, fuel and GST if a customer lists the car on Zoomcar’s platform for 15 days.