Representational: Cabs lined up and ready to go for Ola rental service. Photo: IANS
Taxi-hailing app Ola has now entered the car rental business. The company has put together a new service which charges people on an hourly basis instead of the point-to-point to charges in the current model.
The company in a Google Playstore post said, “Need a car on standby to take you around? Now rent a cab on an hourly package with the all new ‘Rentals’. Available for local travel in select cities.”
The rates for the rental services for 4 hours/40km are Rs 750 for an Ola Mini (Tata Indican Maruti Ritz, Nissan Micra), Rs 850 for a Ola Prime (Dzire, Etios, Sunny) and Rs 2,900 for Luxury car (Camry, Accord, Mercedes-Benz).
Currently, players such as Zoomcar.com and Rentalcars.com operate in this segment which has largely been dominated by local players.
Zoomcar’s rental services are much cheaper depending on the car as well as package in terms of km. For instance, renting a Ford Figo in Mumbai for the same time span of 4 hours/40 km would cost Rs 380, while a sedan Honda City would cost Rs 440.
However, Zoomcar’s offers only self-drive rentals and does not have the option of a driver. Ola on the other hand is a cab service and comes with this option. It may however choose to self-drive option in the future, says an Economic Times report.
Ola’s rental service is available in all major 31 cities in India, including Viskhapatnam, Warangal, Delhi, Jaipur, Hyderabad, Indore, Ahmedabad, Chandigarh, Pune, Coimbatore, Chennai, Mumbai, Kolkata, Kochi, Vadodara, Bhopal, Bangalore, Surat, Jodhpur, Mysore, Guwahati, Bhubaneswar, Shimla, Hubli Dharwad, Vijayawada, Siliguri, Jabalpur, Kanpur, Rajkot, Ranchi and Durgapur.
Rival Uber currently does not offer rental services. Uber recently launched its Rs 6 per km charge for the UberGO service in order to compete with Ola Micro. So it remains to be seen whether Uber will follow in the same way.
Ola currently has around 3.5 lakh cabs on its platform and is present across 102 cities, according to an Indian Express report. Apart from this, it has also started an outstation service which offers customers inter-city travel.
Courtesy: Zee Business
Car Rental Business in India : How to Start
Do you know about the Car Rental Business in India. Its is one of the most growing industry from past year. There are many leaders in Car Aggregators and Car Rental Business in India.The Indian taxi market is pegged at USD 9 billion (Rs 54,000 crore), of which less than 10% is organized.
Car Rental Business Plan and Model in India
Starting a Car Rental Business in India you have to create a best business plan for the car rental company. There are many types of car rental business plan like you can start a Rental Fleet Business (owned the Fleet) or you can act as Cab Aggregators like Ola or Uber even you can attach your Car with Ola Cabs & start the business from Small investment.
Even India’s leading Cab Aggregators like Ola or Meru Cabs started from the rental fleet business and on later stage they change their business model into an app based cab aggregation service (similar to Uber) and the rest is history.
A Car Rental Business in india have following revenus lines –
- Fleet Management via Tele Sales
- Percentage Commission from Trips being served through its platform (Trip Based Commissions)
- Corporate Tie Ups / Event Tie Ups
- Vehicle On-Boarding Fee
- In-Cab Advertisements
- Fleet Leasing (To Drivers)
- Car Type
- Peak Time Charges
In a best car rental business plan you have to include target market, your start up investment, supplies. How you access the market considering the demand, projected annual revenues and expenses. Below are good presentation on Car Rental Business Model in India.
How to Register a Cab or Car Rental Business or Company in India
After the preparing your business model and plan you have to register a car rental company in India. There are lot of option for the registration a cab company in India like from register a private limited company to solo firm. some website like myonlineca which can helps you to choose right legal entity for your cab business in India.
Apart from the legal entity you have to apply for the service tax registration as cab service provider and recover the service tax from the customer & pay to the government. You need some license also for the running a Car Rental Company in India.
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