Self-drive car rental startup Zoomcar India Pvt. Ltd said on Monday it sold 3,200 subscriptions through its Zoomcar Associate Programme (ZAP) in March, taking the total to more than 7,000.
Launched in February 2018, ZAP allows users to subscribe to a car for a period of six, 12, 24 or 36 months. The longer the subscription period, the lower is the monthly subscription fee.
However, the car would be registered under Zoomcar's self-drive car rental licence, which makes it commercial in nature, according to information available on its website.
“We strongly believe that through ZAP Subscribe we can grab 15% to 20% of India’s personal car purchase market over the next two-three years,” said Greg Moran, founder and CEO of Zoomcar.
Moran added that the trend of subscription-based car ownership is increasing with growth of the shared economy across the globe. “In matured markets like the US, subscription commands 40% of the total cars sold annually,” he said.
Zoomcar was founded by Greg Moran and David Back in 2012. It is one of a new-generation of transport services providers promoting shared mobility. The company has more than 7,000 cars in its fleet and operates in nearly 45 cities across India.
The company has raised $100 million from investors so far, including $40 million in a Series C funding round from automotive major Mahindra & Mahindra in February 2018. The deal valued Zoomcar at around $172 million.
In 2017-18, the company registered a 31% increase in operating revenue to Rs 155 crore -18 from Rs 118 crore the previous year. However, losses widened to 116.4 crore from Rs 105.6 crore.
Zoomcar’s local rivals Drivezy and Revv have raised investments in recent times. In November last year, Drivezy raised $20 million in its Series B round led by existing Japanese investor Das Capital, Axan Partners and venture firm IT-Farm while motorbike company Yamaha came in as a new investor. Revv raised an undisclosed amount from Hyundai Motor Company in August 2018.