Bangalore-based ZoomCar India Private Ltd which operates the membership-based car rental service ZoomCar.in has raised $30,000 angel funding from the former US treasury secretary Larry Summers in form of warrants, reports TechCircle, adding that the company plans to use the investment raised to procure more cars.
Prior to this, Zoom had raised an angel round of $215,000 from Empire Angels (New York, US), Lady Barbara Judge and several other angel investors last month. The company has raised around $325,000 funding until now, as indicated by the report.
ZoomCar is a membership-based car sharing service, which allows users to book cars on a hourly or a daily basis and drive them anywhere in the country. However, the user will have to drop the vehicle back at the same place from where the vehicle was picked up.
The site currently offers a web-based reservation system and mobile apps across iOS and Android. One can head over to the website, choose their location on a pincode-basis and provide the pick up date and return date to view the cars available for the period. One can also sort these results based on distance or price, choose their preferred car and sign up for the service to make the booking.
The company is currently operational in Bangalore with plans to expand to Mumbai and Delhi by the end of this year and later to Chennai, Hyderabad and Pune. It claimed to have 10 cars as of last month, which included the likes of Ford Figo and Mahindra Scorpio among others. It also plans to introduce BMW cars and Electric vehicles in the future. Update: Zoom co-founder David Back has informed that it has 19 vehicles as of now. They plan to introduce BMW 3 Series cars this month and Ford Ecosport cars from next month.
Pricing: Zoomcar currently offers various packages depending on the car chosen by the user. For instance, the Ford Figo costs Rs 199 per hour or Rs 1999 per day, while the Mahindra Scorpio costs Rs 249 per hour or Rs 2499 per day. These rates include Fuel, Insurance, Car Maintenance costs and tax.
There is also a limit of 200 km per day per booking, after which one has to pay Rs 8 per km (Ford Figo) or Rs 12 per km (Mahindra Scorpio) The company however offers only credit cards and debit cards as payment options.
Other Players: While we are not familiar with any self-driving online car rental service in India, there are a bunch of car rental services in the country like Olacabs, Taxiforsure, Getmecab.com, and Savaari among others. Outside India, US-based Zipcar offers a similar car sharing service and was acquired by Avis Budget Group for around $500 million in January 2013.
Updates: There was a factual inaccuracy regarding investors in the original post. We have updated it with corrections.