Car rental company Carzonrent India Pvt Ltd , which operates radio taxi services under the name EasyCabs, has acquired the rideshare startup Ridingo, reports The Economic Times. Following this acquisition, Carzonrent will get into the ride sharing business, which it expects to be 75% of its total business in the next 5 years. The companies refused to reveal the value of the cash and share deal.
Ridingo currently provides an app for car owners to connect to people looking for a ride. Users get to pay for the ride through the app itself, which the company then distributes to the car owners. As for safety, the platform is only accessible to users registering via social media platforms and sharing a copy of their driving licence.
Founded in 2013 by S Mohan and Vardhan Koshal, the platform claims to have 8,500 registered users in Bangalore and claims to average 400 trips a day. Carzonrent, on the other hand, was founded in 2000 and provides users with chauffeur-driven cars and limousine service, Myles for self drive options and EasyCabs for regular cab service. The platform operates across 40 cities, and provides services at airports as well.
Carzonrent mentions it plans to scale the ridesharing service to 250 cities in the next five years and continue to use the Ridingo brand name. The company said it is currently in talks with private equity players to raised around $75 million for expansion and has plans to go public in the next two years.
Note that at present, Carzonrent provides a fleet of 10,000 cars of which it owns less than 2,000. Meru Cabs is another competitor that offers its own cabs; the platform owns 6,000 of the cars in its 12,000 large fleet. This is unlike Ola (fleet of over 1 lakh vehicles), TaxiForSure (15,000 vehicles) and Uber that are merely aggregators of taxi service providers and don’t directly own any of the cars.
Competition in ridesharing:
– In October 2013, Bangalore-based Car sharing service Zoom raised $1 million seed funding led by the existing investor Empire Angels (New York, US) and participation from other investors like Funders Club (San Francisco, US), Basset Investment Group, Lady Barbara Judge and other angel investors
– French ride-sharing startup BlaBlaCar which raised $100 million investment from Index Ventures & others in July last year, was looking to enter the Indian market. BlaBlaCar founder Nicolas Brusson had said in an interview to The New York Times that they planned to use the investment to expand to emerging markets like India, Brazil and Turkey where the “transport infrastructure is poor”.
– Rocket Internet-backed ridesharing service Tripda has launched its operations in India in November last year. The company mentioned it would initially focus on Mumbai, Pune, Bangalore and Delhi, although anyone outside these cities would also be able to use the service. SmartMumbaikar also offers similar ridesharing services.