Carzonrent Plans to Skip the Road Taken by Ola and Uber
Co to focus on corporate car rental and self-drive venture Myles; grow revenue to .₹ 5kcr in 3-4 years from .₹ 325cr in FY16
New Delhi: Carzonrent, which operates radio cabs service EasyCabs, said it will not compete with taxi-hailing services such as Uber and Ola, but would focus on growing its corporate car rental business and self-drive venture Myles over the next 3-4 years.
Rajiv Vij, chief executive officer, Carzonrent, said, “We are a profit-making, compliant company. We do not want to get into price wars or get involved in regulatory issues. We do not need to go to their turf and fight. We want to grow our revenues to .₹ 5,000 crore over the next 3-4 years on a bottom-line of about .₹ 600 crore. We want to grow in a sustainable manner.” The New Delhi-based company recorded a turnover of around .₹ 325 crore in FY16, said Vij, adding the company is making profits. Carzonrent currently has a fleet of 10,000 vehicles; 2,500 of these being operated as radio cabs by EasyCabs. The company has chalked out aggressive plans to grow its fleet to 75,000-80,000 vehicles over the next 3-4 years.
However, the expansion in fleet would primarily be for Myles and for the corporate car rental ventures. “Self-drive is the next big opportunity for us. Over the next five years, we want to develop Myles as an alternate urban mobility platform. In India, the average utilisation of a personal vehicle stands at around 20%, while globally car sharing is becoming increasingly popular with 10-25 people sharing a single vehicle. With Myles, a consumer need not make a capital investment to own a vehicle. He need not go through the hassle of maintaining, fuelling and then reselling his car,” added Vij.
Myles has a fleet of 1,000 cars across 22 cities as of now. The plan is to offer the service with a fleet of 50,000 vehicles in as many as 50 cities over the next four years. Vij is in talks with investors to raise $20-30 million to fund the planned expansion.
“We are in the process of transferring licences and hiving off Myles as a separate entity. This will be completed in the next few weeks. The fresh investment will come in immediately after that and will be utilised to develop technology, expand market reach,” Vij said.
Myles, today, clocks an average of 16,000-17,000 rentals every month. Overall, Carzonrent has registered 4 lakh rentals (2 lakh corporate rentals and 1.5 lakh rentals through EasyCabs).
Around 65% of its revenues are from corporate car rentals, 20% from EasyCabs and the rest from Myles. Though corporate car rentals would continue to bring in a major proportion of the business going ahead, the contribution from Myles will go up manifold, said Vij.
The company is also in talks with Mahindra & Mahindra to put in place charging stations and a dedicated green fleet of 400-500 electric vehicles.