ZoomCar Business Model | Case Study


Today, We will talk about India’s First Rental Business Model That is Zoom Car Yes You heard it Right, Online Car rental Business Model You can book the Car on Rental basis from them and You wont get the Driver, You will drive it You might had an experience in Ola, uber But if You are at The Airport, You can Book the car from ZoomCar and want Drive it by yourself want to get on a Date, or want to impress a Girl and You don’t have enough Funds to Buy a Car and want to go for a Date, You can Rent a Car from Zoomcar and have a Great Date Ideally its not for this Use, But for the Corporate Use But i am giving you an Example How can you use this Service Its a Bangalore Based Company and was founded in 2013 and was started by two Americans, Breg and David They both did their graduation Together and Did Post Graduation from Different Business Schools Later decided to work on this Business Model In India, if you wants to a Taxi Business Kind of a Taxi Business Model Then, you need a Yellow Number License Plate And They were having some Trouble Getting the Yellow Number License Plate and Because of that they have to tie up with Different Peoples and In Bangalore their were 5 people who can do this They track all of them, and 1 person get Agree on this, That was Ramesh Tours and Travels If you haven’t noticed yet, Their cars Have a Normal License Plate Not the Yellow One But It comes in a Very Special Category, that is VIP Commercial Number Plate Now, Whats the meaning of VIP Commercial Number I would also like to tell you another Unique thing About it If you book the Car from their Website Then, When you take the Car from them, you Become the Owner The ownership gets Transferred to you Like if Any Miss Happening Happens from your side Then, it all under Your Liability and You don’t Need any Special License for Driving, A normal license will Work You don’t need a Commercial One and Your Business model was on Yellow No. Plate Then i wont be able to take is as I don’t have a Commercial License That is, I don’t have a License to Drive a Yellow Number Plate car and that was the only reason, they Tied up With Different People Before this To make their Business Feasible Normally if you wants to do a Business in IT Sector like what i have, Digital Marketing Business and For that, I don’t have to go under Any Government Policies or Rules I don’t have to Follow many rules for this want to do a Normal Business But in the Zoomcar Business Model, They have faced lot of difficulties as it requires a lot of Paper Work and some Approach to pass through some Rules and Document What they have as of Now, Is 60% Repeat Customer If you booked the car from them and drove it Their are 60% Chances that you would be a Repeat Customer They have more than 2 Million Happy Users and Users Have traveled more than 200 Million Km. And have around 2,200 Personal Cars in which 70% of the car are self Owned by taking a Loan from the Bank and the rest one’s are on Lease They have also launched another Business model, I will discuss about this later on If you wants to book a car from them, They have three Different Package (Zoom lite, Classic and Xl) They all have their own Unique Features Like you will get 5Kms Free in one Package per Hour in some Package You can see the prices according to the Car Listing Basically, I really Liked this Business Model Its Really Amazing, I’ll tell you all later on how they are working Profitably how to Generate Profit, And how they are able to Provide you the Car Will tell you everything in Detail You got the Car by booking it, and we can Clearly Understand the Fact that the cars are Funded By the Banks and Then they give it to you On Rental Basis But Recently, They have launched a New Business Plan and because of that their company is making Profits Just within a Year They were in the loss, and Just after launching the New Model, Its under Green Sign (Making Profits) But How? They Launched a New Service of Buying a Car If you want to buy a car of 10 Lakhs, You need to give at least 2 Lakh Downpayment But while Purchasing from them, You dont have to give any Down payment The make it Possible by giving a Hire Service of Long Term Previously, it was a Rental modal For a Day, Two or a week But now, We are talking about 6 Months For a Year, Or Two What happens when you book a car for 2 Years? Consider a Month of 30 Days In which you have to Travel for 15 Days for Office, or Work some Personal Work and Rest 15 days, you car is Just Unused Now, If you bought your own car, You wont get anything in return for those 15 Unused car Days and if Your Car is on EMI, You have to Pay the Money for that 15 Days also But when Buying from them, They give a Service to you to List your Car on their Website as a Market Place and When a Customer avails the Service, like they Usually do They will take the car from your Place and they will work on Some Commission Basis They say it is 30%, Their Commission But you will get a Better idea after what ill show and With my Calculation That how it Happening The Raised a Total Funding of 103M Dollars in Over 10 Funding rounds Till Now 2 October, 2013, they got the Seed investment of 1.6M Dollar and if i talk about some Recent Figures They have raised the Debt Funding of Over 3.6M Dollar If you are confuse between Debt and Equity, do Check my Video They have over 19 Lakh Monthly Traffic on their Website and Considering at least 2 Percent Conversion Rate You will get an Idea about their Sale i am Considering Minimum 2 Percent They don’t even spend their 10% of the Funds in the Marketing They have a thinking of Organic Expension, and they don’t have to do much Now lets talk about the benefits of their business model, They have Two plans If you want to take the Service without Fuel, You can take that also they give us 5 Kms Free Suppose we want to go on a Date in Cp So, I booked the car from there for 5 kms or for Showing of In a Get together with My Friends I booked it, but didn’t drive it. Just parked it Nearby Turned on the ac and Had a Pleasent Time Meanwhile, The petrol will get burn But i make sure not to drive it more than 5Kms, and then gave the Car back to them So like this, there are many people out there, who are misusing this Business model and If a Company Person is watching this Video Dont take this service away as you are earning profits and some are also make some profit out of it and you have to give 9Rs. for 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 Do Consider this also You will also get a Insurance from them, Car assistance and You can take the car anywhere in the India as They have All India Permit for their Every car You just have to pay the road taxes, or the toll taxes of entering in another State rest is all covered by them If you are considering that you will get a 250 Kms free every Day and you are traveling 250 kms every day and By taking a Pause and even sleeping with turned on ac by parking it , You can do this also They have some Limitations also and not everyone can drive their car According to their analysis, People having age below 20 had a chances of accidents more so, They eliminate the People Below 20 age in their Business Model You have to upload the License and For some Heavy Vehicle, They have Age Restrictions also You can also take Audi from them Take the Audi and Showoff with Your Friends Or a Group of 4 can also Contribute for an Audi and showoff Just register yourself, have to pay some Booking Amount Thats Refundable or consider that as a Security for Any Miss Happening 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 Delhi, We have a New rule that a Petrol car can Run For 15 Years Only (Verbally Incorrect) and If you are planing 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 6months, you wont get much in return For those people, This Business is Good You can take the car on Lease Basis for 6 months, and then take another one After 6 And so on Or you can also list your car on their Website that i drive it for 10 days only and can list it on their site for the rest 20 days For my simple Calculation, I have considered a Person takes a Swift DEsire and He takes the Car on Lease Basis for 6 months You can take for as much as you want, I am Considering 6 Months And out of that time, He list the car for 10 days on their Website and During these 10 days. He gets about 750 Rs. every day and If you check this on their Website of taking a car for a day( 24 Hours) , you will get the Price and that comes around 1300 Rs. So after subtracting the Expenses , rest is their Profit And in the PROFIT, Their will be the Salary of the Employees and they have more than 200 Employs, so there will be some Expenditure over also Their will be some Infra Cost Application runing and Maintenance Cost In the Previous Financial Year, The had a Profit of around 19M Dollar So, Finally they are In Profit and Personally i really LIked the Business Model and as a Consumer also i have asked many Peoples, and some My friends also Use It and they all are Satisfied that Also mentioned about how good Their Car Care Road Assistance are They take the care from place only will fix it and will give it back to you Basically i heard many things about their Customer Service If they are getting 60% Back Customers that means the people are satisfied Now there are many Similar Companies But they were the first Leader, so i made a Video for this only Greetings

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