Launched in 2015, Bengaluru-based Drivezy offers unique mobility solutions to urban Indians, who’d rather rent than own a bike/car. With a fleet of over 17,000 bikes and 3000 cars, the start-up has ambitious franchise expansion plans
Drivezy, the leading peer-to-peer car and bike sharing platform in India, has zoomed into the Franchise 100 list 2020, recently published by The Franchising World magazine. The brand debuted in the ‘Debutant’ category of the list with its aggressive focus on franchise expansion.
Launched in 2015, the brand has enlisted over 17,000 two-wheelers and 3000 cars in 11 cities. Today, it serves more than one lakh customers every month. “With per capita income of $2,134, India sells over 3 million cars annually and has over 50 motor vehicles per 1,000 people as against China that has $7,329 per capita income but sells over 24 million cars annually and has 231 motor vehicles per 1,000 individuals. This presents a massive opportunity for shared mobility in India. In December 2018, we began franchising our brand across India to consummate this massive supply gap in urban mobility and within a year we have established 20 franchise outlets in 5 cities,” shared Ankur Sengupta, Co-Founder, Drivezy.
The company has partnered with close to 5,000 individual vehicle owners, asset management companies, commercial fleets and automobile dealerships to enlist on their platform and scale faster than their competitors with their asset-light business model. It has over 1 million active users with 40% of the usage coming from delivery personnel from companies like Swiggy, Zomato, Uber Eats and Dunzo. Users can rent vehicles for short durations as well as for up to 30 days.
Moving forward, Drivezy has plans to enlist over 4.5 lakh vehicles on its platform by 2022, a bulk of which will be sourced under the franchise model.
Drivezy offers two unique franchise models: operations management model and asset financing model. Under the operations management model, franchisee needs to invest Rs 25-50 lakh on parking infrastructure, management costs and security deposits. While the franchisee manages the daily operations, the fleet will be owned by the company. A person can expect monthly returns of Rs 5 lakh with 25% share of revenues.
On the other hand, asset financing model calls for an investment of Rs 60 lakh to Rs 1 crore for parking infrastructure, vehicle fleet, management cost and security deposit. In the model, operations will be managed by the brand and the franchisee can expect monthly returns of Rs 13 lakh with 75% share of revenues.
In the both the models, monthly operational costs like fuel, tech solutions and vehicle repairs are borne by the brand.
The Franchising World, India’s no.1 franchising magazine, identifies the Top-100 franchise brands and celebrates their achievements every year in its anniversary issue. The issue highlights the established and emerging Indian and global brands that are increasing their positioning in India along with the new-age brands that are lucrative and profitable, expanding fast and can act as a reference guide for budding entrepreneurs and investors across India.
Franchise 100 is the one-stop destination to know everything about the franchise industry and the leading brands, which investors and prospective franchisees can consider to start their entrepreneurship journey.