Zoomcar's Ambition to Lead the "Car-Sharing" Marketplace in Indonesia

The car rental industry in Indonesia had slumped during the pandemic. The reason is, most car rental businesses are quite dependent on tourism activities. Although not yet fully recovered, the tourism sector is returning to its growth phase and is showing strong demand for car rental services.

Founded in 2013, Zoomcar is a platform pioneer car-sharing marketplace in India. In 2021, the company announced its expansion plans into the Indonesian and Vietnamese markets. In April 2022, Zoomcar officially introduced its services in Indonesia and has prepared funds of $25 million or around IDR 366 billion to expedite its business expansion.

At the end of 2022, the company strengthened its commitment to work on the Indonesian market by appointing Delly Nugraha as Country Head Zoomcar Indonesia. Prior to joining Zoomcar, Delly had various experiences in operating technology companies in Indonesia such as Qraved, Gojek, Carsome, and the airasia Super App.

Delly said Zoomcar was at the peak of a transformation in personal mobility. He is also passionate about helping the company reach new heights with the team. Team DailySocial.id given the opportunity to further interview Delly Nugraha regarding Zoomcar's business plans in Indonesia and see opportunities in this sector going forward.

Target and potential market

In India, Zoomcar is said to have led the market car-sharing marketplace by facilitating a total of 20.000 four-wheeled vehicles, as well as empowering asset owners to share cars for additional passive income. The Bengaluru-based company employs more than 300 people and operates in 50 cities across India, Indonesia, Vietnam and Egypt.

As Zoomcar Co-Founder and CEO Greg Moran has said, Indonesia will be the next main focus in particular because the market is very large and new with a wide size and reach. Currently, 90 percent of Zoomcar's business originates in India. The company has processed more than seven million transactions in the country since its inception. He admitted that the company has experienced growth of 6,5 times over the last four quarters.

When asked about the expansion target, Delly revealed that there are cultural and market similarities with Indonesia regarding car rental services. The area has a low rate of vehicle ownership, while a sizable and growing population. In addition, the need for more collective (in large numbers) mobility is increasing.

With the C2C business model, the company hopes to change the capacity of idle vehicles by renting out private cars so that they can be used as best as possible. Not only does it offer additional income, Zoomcar can also be used as an alternative to reduce road congestion and pollution in urban areas.

In Indonesia, Zoomcar itself has only been operating in the Jabodetabek area. Currently, Delly revealed that there have been more than 1.000 registered cars and hundreds host active in this area. He also admitted that his team was trying tocrack this market before later expanding services to other big cities, even tier two and three.

In running this business, Zoomcar is not alone, other players who also offer similar services include Clover, that is empowering host to earn money through their vehicles by matching fellow people who need personal rides. Apart from that, several platforms are already operating in Indonesia, such as Hipcar and Sharecar.

There are three value propositions that differentiate Zoomcar from other players. First, the company offers simplicity through technology keyless which allows transactions without face to face between host and guest (car renter). Then, from the side security, with the installation of monitoring devices to ensure the safety and security of the car while driving.

Zoomcar also offers more competitive rates and no deposit for tenants. In addition, para host will benefit in terms of car maintenance and ease of access. For now, cars that can be registered are vehicles that have adopted the system immobilizer or designed to use a more secure electronic encryption system.

In carrying out its services in Indonesia, Zoomcar is also intensifying collaboration. Delly revealed that the company has a focus on four verticals. First, in the automotive sector. Not long ago the company also announced cooperation with OTO for user acquisition.

Second, in the field lifestyles, one of them is with Blibli. Third, cooperation with financial institutions or banking to facilitate payments within the platform. Lastly, it also opens opportunities for collaboration with the media to awareness product.

IPO plan

In a joint interview DailySocial, Delly emphasized Zoomcar's plan to immediately go public through the SPAC channel. The company will take action to merge with Innovative International Acquisition Corp.

This corporate action aims to accelerate technology development and support expansion at Zoomcar. The combined transaction value of the companies that will be renamed Zoomcar Holdings is estimated to be $456 million.

"We are already leading the Indian market. One way to expand and accelerate business is through an IPO. The hope is from listing we can get fresh funds that can be used to continue investing in business growth in Existing and extension market," Delly added.

Since its founding in 2013, Zoomcar has raised funds twice. In early 2018, the company raised around $40 million led by Indian automaker Mahindra & Mahindra. Last year, Zoomcar raised $92 million in capital to grow its business.