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Zoomcar raises a ton of cash to join the car share market

ZoomCar logoThere are few things that are as big right now as car sharing. This is an industry that partially came about overnight. Really, the industry did so well because of the economic times. It was the perfect storm for such an industry to flourish. People still need to travel, but they want to do it for less. Instead of owning their own car, it is easier just to share cars with others or rent cars for just a few hours.

Now a new company is set to enter the marketplace. This new company, which is a lot like Zipcar, is being called ZoomCar. They are looking to make their mark on the industry and grab their share of the industry’s $3 billion rental car space.

The headquarters for this new company is going to be located in Bangalore. Much like other car sharing services, it will be based on memberships. This rental car service only offers seven cars as of now, but they are hoping to expand all over Bangalore in the coming years. If everything goes well, they hope to expand into other places in India as well. More than likely, they will try to expand to areas like New Delhi and Mumbai next.

The company was able to raise a good amount of money to get started. In fact, reports show that the company raised over $215,000 in funding from Empire Angels, which is based in New York, and a UK investment group. This amount of money should help get the company up and running and maybe even invest in more cars in the near future.

The prices at ZoomCar vary just like at any car sharing company. The better the vehicle people choose, the more money they have to pay. For example, some cars can be rented from ZoomCar for just $2.67 an hour. If people want to rent the car for the whole day, it will cost $37 per day. These prices were based on renting the Ford Figo from ZoomCar.

David Back, who is actually the co-founder and president of ZoomCar, said that the idea to build the company in India came from the company’s pioneering spirit. Not only that, but it also came from the belief that they could actually make a lot of money there. David said that he really wanted to take the car sharing business to an area of the world that really doesn’t have it yet. When viewing all of these different requirements, India seemed like the perfect place. Travel has really taken off in this area, yet they don’t have a car sharing program.

Mr. Back was also asked why they chose to use the same model of renting cars that Zipcar does. He said that, after reading reviews from consumers from all over the world, he found out that people prefer renting this way. It actually made renting cars easier. On top of that, renting cars from car sharing companies like Zipcar is cheaper for people who don’t need to rent a car for a few days and only need it for a few ours or a day.

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