Ahead Of The US Listing, Zoomcar Saw A 7-Fold Volume Growth

Zoomcar, a company that rents self-driving cars, is rushing toward its NASDAQ debut with a SPAC listing., whereas the majority of cab aggregators in India are having difficulty with small ticket sizes and a viable business model.

Covid-19's two tumultuous years were a blessing for the Bengaluru-based startup. Due to the disruptions, the startup had to change its business strategy from direct leasing or an ownership model to one where it invited hosts to post their automobiles on its website and then let consumers rent them out. The decision to choose a sustainable and asset-light model paid off. Additionally, the post-pandemic behavioral shift encouraged families to travel farther, more frequently, and more adaptable.

This resulted in Zoomcar having 20–30 times larger ticket sizes or revenue per trip than its competitors, who largely concentrate on short, intra-city rides.

According to Greg Moran, co-founder and CEO of Zoomcar, “We have seen about 7x growth in business volumes compared to last year as we got out of covid-19. We’ve grown by leaps and bounds during this period. When we were operating in direct leasing or vehicle finance model, our maximum strength was about 7,000 vehicles. Now as we’ve transitioned into a full marketplace, we’ve been able to grow it by three and a half. We also achieved significant improvement in our ticket size, much like what you’ve seen with other digital or e-commerce platforms, where commonalities coming through covid-19 and then moving out of it, was the purchasing power and overall volume, and ticket size going up quite a bit," 

On its platform, Zoomcar records 60,000 rental transactions on average each month. According to him, transaction volumes are increasing in line with supply.