The Rising Market for Car Rental and Car Sharing

More and more Indians are now opting for vehicle rental and sharing services. And a few companies, like Carzonrent are developing the market further.

​Population boom in metropolitan cities, rising costs of living and shabby public transportation is forcing people to opt for alternatives. That’s why, car rental and sharing services are gaining widespread popularity in the country. Both of them have their own advantages. While rental services allow people to have the benefits of a car within their means, car sharing gives them the opportunity to further lower the costs of traveling without even taking a public transportation. When chosen wisely, sharing services can even promote a better environment, especially in places like Delhi where people are reeling under mounting pollution levels.

This rising market today is clearly headed by a few players in the rental industry. This includes Carzonrent, the largest car rental company that’s funded by SIDBI, Sequoia/West Bridge and BTS Advisors. The company is a leader in self-drive rental service called ‘Myles,’ and has been offering sharing benefits to travelers. We spoke to Mr. Rajiv Vij, CEO of Carzonrent and discussed different facets of this rising rental-sharing market. Here’s what he had to say.

We already know that Carzonrent is your brain child? But how was Carzonrent established? What was the journey behind the brand?

It began as a company that offered a simple solution- better on-ground transportation. Before Carzonrent, I had personally noticed that ground transportation in the country was neither streamlined nor really affordable. There were issues with security and safety of passengers. So, when we started the company, our short term goal was to provide a safe and reliable medium to travel. Slowly, we developed a long term to provide structure and streamlined outlook to the unorganized personal ground transportation sector.

This is when our journey began. Since then, we have expanded our line of services to provide car-sharing and self-drive rental services. We were the first to receive PE investment in 2005 and we also have other investors.
We have been able to reach our goals of re-organizing the industry. But our journey isn’t over yet. At Carzonrent, we develop and push ourselves. That’s why we were the first ones to introduce online booking system, credit card payments and mobile application for bookings. We are also the first ones to provide Limo services and Wi-Fi Facilities. So, basically, we have been molding and re-creating our goals to provide better services to our employees.

What do you think gave you an edge over other brands?

Of course, we have several players in the market. But personally, I think that Carzonrent is a pioneer that provides technology, training, timely delivery and transparency to people. Our vast range of services, coupled with our employees and experience gives us an edge over the others. We have self-drive, which allows to enjoy the benefits of having a car without actually owning one. We have intra-city facilities, car-pooling advantages, car-sharing services, luxury car rental and hire, international car hire, radio taxis and even corporate taxis. So, only we can offer the largest range of customizable services to the people.

And that’s visible in our numbers too. We have over 8500 drives, 800 employees and services available through 39 cities, 102 locations. We are offering our solutions at airports, hotels and malls. Our vehicles clock over 25000 trips daily!

Tell us about the Self-Drive Service. Why was it started?

We all know that maintaining a personal vehicle can be too expensive. Plus, the rising costs are forcing people to avoid buying their own vehicles. But we also realize that people need cars to commute safely and effectively. That’s why, we offer self-drive services. It was started to provide people comfort of having a car without worrying about the hassles of owning one.

Our self-drive services are offered in major cities at really affordable rates. We also have long-term discounts. The fleet is large and customers can choose from over 30 car models from a Tata Nano to Maruti Swift to Toyota Innova or even Mercedes E-Class. I think that such a range allows people to choose a vehicle that suits their lifestyle and budget. That makes Myles, our self-drive service the fastest growing brand in the country.

We know that Car-Sharing trend is growing rapidly. Why would you recommend it to our readers?

For a simple reason- it saves money. Whether you are a college student looking for a decent way to commute or an office employee who wishes to curb their expenditure, we have a solution for you. Owning a private vehicle is definitely convenient, but the attached costs can make it very expensive. That’s not the case with car-sharing. It spreads travel costs among different people and so, one person doesn’t have to shoulder all the burden.

I would personally recommend this because the process takes a lot of cars off road. This can help in reducing those traffic snarls that prevent you from reaching a place on time. It also helps in reducing wear and tear of roads, decreases air pollution and energy dependency. Parking infrastructure is reduced and you have more money saved to enjoy life!

Mr. Rajiv Vij is the CEO of Carzonrent, a car rental company with presence in over 140 countries.