Self-drive car rental start-ups, including Zoomcar, Myles and Revv, are wooing private owners and dealers to put their cars onto the rental platforms, as they look to bolster their fleet without having to buy new cars.
Myles Angels and Zoomcar Associate Programme are some of the new initiatives that allow car owners to earn a share of what their car makes when used as a self-drive taxi.
This is part of a larger shift where the self-drive industry in India is moving from an inventory model to a marketplace one, to improve margins and free up capital.
“Supply is the only constraint. It is very clear. From a demand standpoint, the market is incredibly robust and very healthy. So, for us, it is really just a matter of getting the supply to that next level,” said Greg Moran, co-founder and CEO at Bengaluru-based car rental start-up Zoomcar.
The company has piloted new models starting last year and claims that about 20% of its 2,500-strong fleet is not owned by Zoomcar.
“Our expectation is that by the middle of 2017, we should be around 75% on this marketplace model,” said Moran.
Over the past 12 months, self-drive car rental companies have innovated with different models to scale up their fleet. This includes tapping local car rental companies (which have black-background numberplate cars) to contribute their fleet and getting individuals to buy cars for rental platforms as a means of extra earnings or to offset the cost of the vehicle.