Zoomcar said that it has turned EBITDA profitable in the month of December 2017, and the company’s revenues grew over 40% in the year 2017.
The company attributes the profitability to its marketplace model Zoomcar Associate Program (ZAP), which was launched in April 2016, which allow users as well as other individuals to buy one or more vehicles, which can be leased to Zoomcar on a revenue sharing model. ZAP allows users to buy vehicles on the company’s behalf and earn revenues by renting them when vehicle is not in use. This also allows Zoomcar to have less of self-owned vehicles and more of third-party vendors and dealers vehicles to its fleet.
Zoomcar also said that on the back of this development, it now plans to enter Southeast Asia and Africa in 2018. The company had earlier charted out its international expansion plans to foray into 20-plus countries in next two-three years, starting with Asia and Africa.
Greg Moran, CEO & Co-founder, Zoomcar said in a statement that the company is looking at a 4X growth over the course of 2018, and that Zoomcar will expand its supply through ZAP with about 12,000 vehicles by December 2018. As of now vehicle via ZAP model contributes 25% of Zoomcar’s inventory with around 800 cars.
Since its inception in March 2013, Zoomcar claims to have clocked 11 lakh trips in 27 cities and a ticket size of about Rs 4-5K on an average. Zoomcar currently has more than 20 lakh registered users Pan-India with a fleet of about 3,000 vehicles.
Zoomcar’s recent developments
Electric Vehicle: In November 2017, Zoomcar entered into a partnership Mahindra Electric Mobility (MEML) to roll out electric vehicles in Mysore, Karnataka, and Hyderabad. The company had said that it plans to install more units at key locations, and intends to replicate this model in Chandigarh, Delhi soon. These vehicles can be hired by residents and visitors in the city.
Bi-cycle: In October 2017, Zoomcar launched a cycle rental service PEDL in the country, starting with Bangalore, Chennai and Kolkata. The company claims, that in three months PEDL has a fleet of 3,000 cycles in 8 cities and has completed more than 4 lakh trips till date. The company also added that PEDL plans to add 5 lakh cycles over the course of 2018 across 50+ cities.
Hop:The company earlier launched a one-way intercity service called Hop where a customer can pick up a car from a location from one city and drop it off to another city at a Zoomcar location. Earlier, customers had to return to the city of origin to drop the car off.
Funding: In December 2016, Zoomcar raised funding from Chinese VC firm Cyber Carrier CL, which was an additional amount to its series B funding in August last year, when it secured $24 million in the round led by Ford Smart Mobility LLC with participation from existing investors Sequoia Capital, Nokia Growth Partners and Empire Angels.
Zoomcar competes with players like Revv, JustRide, Eco Rent a Car, Myles amongst others, which offers car rental or self-drive services in India.