Zoomcar is set to pilot a chauffeur-driven car rental service ‘Zoomcar Cabs’ in Bengaluru
As part of the new offering, Zoomcar will allow users to rent cars with drivers for affordable prices with durations ranging from as little as 2 hours to more than a month
Zoomcar incurred a net loss of $3.35 Mn and $5.88 Mn in Q1 FY25 and H1 2024, respectively, while it had a negative working capital of $35.02
Nasdaq-listed self-driving car marketplace Zoomcar
is set to pilot a chauffeur-driven car rental service ‘Zoomcar Cabs’ in Bengaluru as the cash-starved company looks to stay afloat amid mounting losses.
As part of the new offering, Zoomcar will allow users to rent cars with drivers for affordable prices with durations ranging from as little as 2 hours to more than a month.
The company will levy a fee for Zoomcar Cabs services, which will include driver allowances, fuel costs and a fixed kilometer unit.
While the company said the service will be made available on the Zoomcar app, it did not specify an exact timeline for the launch of Zoomcar Cabs.
The move comes as an increasing number of customers in India are going for car rentals with drivers while the demand for self-drive cars is low.
In a recent interview, Zoomcar CEO Hiroshima reportedly said that the market for chauffeur-driven car rental products is bigger in India as compared to self-drive cars.
What sets Zoomcar Cabs apart from other cab services and apps is that it allows users to choose specific car models instead of a category of vehicles. Further, it will also allow users to adjust their itinerary while travelling.
Zoomcar is likely to face cut-throat competition in the cab rental market in India from ride-hailing giants Ola and Uber.
The development comes at a time when Zoomcar is grappling with mounting losses and cash outflows, which have sent the company into a turmoil.
Zoomcar incurred a net loss of $3.35 Mn and $5.88 Mn during the three months and six months ended September 30, 2024, respectively, while it had a negative working capital of $35.02 Mn.
In the wake of widening losses, Zoomcar said last month that it had “substantial doubt” over its ability to continue.
The company also saw top leadership falter this year. In June, Zoomcar terminated cofounder and CEO Greg Moran amid mounting regulatory scrutiny over its revenue projections.
By the end of the month, its global president Adarsh Menon stepped down within six months of his association from the company.
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