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ZoomCar Business Model & Strategy Analysis

ZoomCar is India's first self-drive car rental company founded in 2013 in Bangalore. It operates in 45 cities across India with a fleet of cars purchased through loans and leases. ZoomCar follows an asset-light marketplace model where it takes a 30% cut of revenue. There are gaps between customer expectations of reliable service and ZoomCar's actual delivery. Competitors like Revv and Drivezy offer alternative pricing and service models. Recommended strategies include offering customizable distances, vehicle segmentation, improved check-ups, and intra-city drop-offs.

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shashank nuti
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462 views10 pages

ZoomCar Business Model & Strategy Analysis

ZoomCar is India's first self-drive car rental company founded in 2013 in Bangalore. It operates in 45 cities across India with a fleet of cars purchased through loans and leases. ZoomCar follows an asset-light marketplace model where it takes a 30% cut of revenue. There are gaps between customer expectations of reliable service and ZoomCar's actual delivery. Competitors like Revv and Drivezy offer alternative pricing and service models. Recommended strategies include offering customizable distances, vehicle segmentation, improved check-ups, and intra-city drop-offs.

Uploaded by

shashank nuti
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Prepared by :

Vijay Mehra : 80303180115


Vaybhav Shetty : 80303180178
Shivi Sharma : 80303180175
Shashank Nuti - 80303180133
Introduction

• ZoomCar is India’s first self-drive car rental company


that allows individuals to hire cars by the hour or by the
day.
• Founded by David Back and Greg Moran in February
2013 in Bangalore (India)
• Currently operates in 45 cities across the country.
• ZoomCar has positioned itself exclusively as a self-drive
car service
• Partnership like Ford & Mahindra enabled ZoomCar to
become the first car rental company in India
Business Model of ZoomCar-
• Cars of ZoomCar : ZoomCar follows a model wherein it buys 75% of the cars
through loans from banks, while the remaining are leased from large companies
like Avis Budget Group.
• Financial Model : In against for the business and for all the operational support
that ZoomCar will provide, they take a 30% cut of the revenue earned from the
car
• Target Audience : The target audience of ZoomCar has been restricted to mainly
tier-1 and tier-2 metros in India.
Service blueprint
Current Strategy
• Shifted its business strategy to an asset light market place model.
• It heavily focuses on convenience and ease of accessibility as the users have
the freedom to locate a ZoomCar lot within their locality or avail doorstep
delivery service.
• ZoomCar is on track to diversify its operations by entering the scooter
segment
• ZoomCar is looking to tap the totally nasant market of subscription based
model in which you can own a car without actually owning a car.
GAP Model
• For Zoomcar, Gap 2 and Gap 3 exist.
• Gap 2- There is a gap between customer driven
service design and the company’s perception of
customer expectations.
• Gap 3- A gap exists between the customer-driven
service design and the actual service delivery.
• A customer-driven service design would ensure
that the cars are in proper condition without any
defective parts.
• However, the service delivery differs and some
cars come in improper conditions like faulty
clutch or brakes. Thus Gap 3 occurs.
Dimensions of ZoomCar Service

Assurance Empathy Responsiveness Tangibles Reliability


Competitors
Revv:
• Revv doesn’t have any pick-up lot and thus operates on
only delivery model for which it charges the customer.
• Unlike ZoomCar, customers cannot access Revv cars
round the clock.
• Revv has an option for unlimited kms for bookings beyond
24hrs which is not the case in ZoomCar.
Drivezy:
• Drivezy is a substantial player in both 2-wheeler and 4-
wheeler rental segment.
• Customers receive instant security deposit at drop time as
compared to ZoomCar, where the refund is received
within a week.
Recommended Strategies:
• Customizable Distance- Giving user flexibility in selecting the number of kms they wish to avail instead of
pre-set km range.
• Vehicle Segmentation- On the platform, vehicles will be classified as economic, luxury, etc. to provide
customer a better experience
• Optimized vehicle Check-up- Organizational wide training program for pick-up point associates to
streamline vehicle check-up process.
• Intra-city drop facility- Customer convenience to pick a car from one location and drop at another location
in the same city.

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