{"id":10901,"date":"2017-09-21T14:41:15","date_gmt":"2017-09-21T14:41:15","guid":{"rendered":"https:\/\/mobisoftinfotech.com\/resources\/?p=10901"},"modified":"2024-11-07T16:03:52","modified_gmt":"2024-11-07T10:33:52","slug":"car-rental-industry-india","status":"publish","type":"post","link":"https:\/\/mobisoftinfotech.com\/resources\/blog\/car-rental-industry-india","title":{"rendered":"The Current State Of Car Rental Industry In India"},"content":{"rendered":"

Having stayed in Hyderabad since childhood Pratish Kumar knew owning a car was the only way a person could take his family for outings, meetings, luncheons, or long trips. After all, that is how his father and his grandfather took his family for outings. However, now he has one more option \u2013 of driving or renting different cars but not owning even a single one of them.<\/p>\n

This is made possible through on-demand car rental apps and services that provide him cost-effective access to any vehicle. Pratish is a part of a growing number of young professionals who see the immense convenience of the online car rental services.<\/p>\n

The Current Potential<\/strong><\/h2>\n

Businesses are increasingly recognizing the lucrative opportunity across the length and breadth of India presented by the rise of the car rental economy. The interesting thing to note is that only 10% of the<\/a> car rental market is organized. The remaining 90% remains a potentially unorganized market waiting to be tapped via technology-driven solutions. This presents a huge opportunity in both \u2013 self-drive car rentals as well as chauffeur-driven car rental services.<\/p>\n

The current model of a car rental business is dotted by common characteristics across India \u2013 unregulated, transactional, low margin, and operationally intensive. A handful of online car rental businesses like Zoomcar, Carzonrent and Ola Rentals have gained significant traction in this space. The market is wide open for new entrants and they can build a robust vehicle\/car rental startup with specific use cases and vehicle categories.<\/p>\n

Car Rentals \u2013 A Popular Choice<\/strong>

India\u2019s highway connectivity has improved from 76818 km to 100087 km<\/a> in just 4 years ending 2015. This shows the improved pan-India connectivity that the nation now enjoys. Driving enthusiasts would want to explore the unexplored in India and for this, they need easy and affordable access to vehicles through rentals. The term that was virtually unheard of even a couple of decades back is now emerging as a new recreational avenue for the small family of today\u2019s times.<\/p>\n

The parallel emergence of social sharing, smartphones, better car safety, and on-demand affordable accommodation have together aided car drives through car rental services. As compared to tour packages, travel enthusiasts now prefer to explore the land at their own pace and schedule, something that can only be offered by car rentals. It is no wonder that Zoomcar, one of the better- known car rental services in India, has ramped up bookings by 100% in 2016<\/a> through 2 million app downloads and 2500 cars on the road.<\/p>\n

Popular Online Car Rental Apps & Services In India<\/strong><\/h2>\n

Startups and vehicle fleet owners and operators can take a cue from the below success stories and leverage car rental app development<\/a> expertise to launch a successful car rental business.<\/p>\n

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  1. Myles <\/strong>
    Owned by Carzonrent, the 21-city coverage of Myles is one of the better success stories in car rental space. From as less as 2 hours, stretching to months, you can own a Myles car for a range of service tenure.<\/li>\n
  2. ZoomCar<\/strong>
    From a Nano to Mercedes GLA, this well-known self-drive car rental service provider offers a diverse range of cars for its customers.<\/li>\n
  3. Ola Rentals<\/strong>
    Launched in June 2016, Ola Rentals provides multiple types of vehicles \u2013 from SUVs to hatchbacks. The attractive pricing makes Ola Rentals a great option for those who want to attend meetings, shop around the city, go for a weekend trip, or make a family visit to a function or event. Claiming a market share of 60%, Ola Rentals is one of the biggest players in the car rentals segment in India.<\/li>\n
  4. Uber Hire<\/strong>
    The time-based on-demand car rental service from Uber is great for those who have to make multiple stops while driving across the city. Once their pilot run in Kochi was executed successfully, it     launched<\/a> full scale in Feb 2017 with operations across 8 cities.<\/li>\n
  5. ECO Rent A Car<\/strong>
    It offers diverse services like cars on rent, cars for corporate employees, transportation for company staff, and cars for specific events. It specializes in high-end luxury cars available on its rolls.<\/li>\n<\/ol>\n

    Must Have Features In A Car Rental App<\/strong><\/h2>\n

    As mentioned earlier, technology integration is core to the success of a car rental business. Hence it is no surprise that all major players in this segment have invested heavily into making technology the competitive differentiator.<\/p>\n

    By allowing customers to rent a car from an app online, a rental business can grow manifold.<\/p>\n

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    1. Basic features<\/strong>\n