Companies

Car rental start-up Revv to offer subscription-based products

Shobha Roy Kolkata | Updated on October 09, 2018 Published on October 09, 2018

Anupam Agarwal (left) and Karan Jain, co-founders, Revv

Self-drive car rental start-up Revv plans to expand its footprint and product offerings with annual subscription-based products and on-demand cars.

Revv, which is present across 15 cities, is rolling out services in eight more including Kolkata, Ahmedabad, Kochi and Mangaluru, by the end of FY-19. The expansion will be accompanied by a corresponding increase in fleet size, and new one-way intercity routes.

The company currently gets 20,000 unique customers a month. This is likely to increase to 200,000 in the next two years.

Gurgaon-based Revv was founded by ex-McKinsey executives — Anupam Agarwal and Karan Jain — in July 2015. “When we started three-four years back, there was no concept of self-drive car rental in India. Our fleet size, which was 5,000 cars two-three years back, has increased to nearly 20,000, and is growing steadily,” Anupam Agarwal, co-founder, Revv told BusinessLine.

According to Agarwal, the propensity for people in the age bracket of 20-40 years to consume more on app-based platforms, rising per capita incomes and the low penetration of car ownership, particularly in tier-II markets, are some of the key reasons driving demand.

The company currently offers hourly rental, outstation and monthly-subscription products. According to co-founder Karan Jain, leisure currently accounts for nearly 70 per cent of its usage, with the remaining coming from work-related usage. Plans are afoot to roll out an annualised product.

“Today, a person buying a car has to shell out a lumpsum as down payment, and go through a rigorous credit-check process for getting a bank loan. Moreover, he has to commit to a fixed tenure for repayment. We are looking to create a product which will do away with these,” Jain said.

Published on October 09, 2018
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