Drivezy Success Story – Founders, How It Works, Revenue Model

In the realm of automobiles, the younger generation, particularly millennials, has embraced a new perspective, eschewing the concept of car and bike ownership and maintenance. Instead, they seek experiences through renting, using, and savouring the freedom of mobility. Recognising this shift, a group of visionaries, including Ashwarya Pratap Singh, Hemant Kumar Sah, Abhishek Mahajan, Vasant Verma, and Amit Sahu, embarked on a transformative venture called Drivezy in 2015.

Drivezy, previously known as JustRide, stands as India’s premier marketplace for car and two-wheeler sharing. Through Drivezy, individuals can effortlessly book scooters, motorcycles, and cars from fellow nearby residents. The mechanics of this innovative platform operate straightforwardly, enabling seamless transactions and enhancing convenience for all participants.

Drivezy – Company Highlights

Founders of Drivezy and team

The founders of Drivezy are Abhishek Mahajan, Amit Sahu, Ashwarya Pratap Singh, Hemant Kumar Sah, and Vasant Verma.

About Drivezy and How It Works?

Drivezy is a car rental platform that revolutionises the way people access vehicles. By leveraging the sharing economy model, Drivezy connects car owners who need to start using their vehicles with customers looking to rent them. Here are the key features and functionalities that Drivezy offers to its users:

• Convenient Bookings: Users can easily make bookings through Drivezy’s user-friendly website or mobile application.

• Age Requirement: To book bikes and cars on Drivezy, users need to be at least 18 years old, ensuring compliance with legal regulations.

• Flexible Rental Options: Drivezy offers flexible rental durations, allowing users to book vehicles on an hourly, daily, or weekly basis. Users can select the rental period that suits their needs.

• Fuel Options: Users can choose vehicles with fuel included or opt for cars where they will provide the power themselves.

• Minimal Security Deposit: Drivezy ensures a hassle-free experience by requiring a minimal security deposit ranging from INR 0 to INR 999, depending on the vehicle and rental terms.

• Home Pickup Service: Drivezy goes the extra mile to provide convenience to its customers by offering a home pickup service. Users can have the rented vehicle delivered to their desired location.

• Instant Payments and Refunds: Drivezy ensures swift transactions by releasing instant payments to car owners and providing quick refunds to customers when needed.

Drivezy – Business Model and Revenue Model

Drivezy operates on a commission-based business model. Vehicle owners can list their vehicles on Drivezy’s mobile application, and when these vehicles are rented out, the company earns a commission from the revenue generated. Typically, Drivezy retains around 20-25% of the rental income as its share.

Drivezy – Startup Challenges

Initially, Drivezy faced significant trust issues among vehicle owners who hesitated to rent their cars to unfamiliar individuals. Despite Drivezy’s efforts to address this challenge by providing guarantees, implementing an aggregator model, conducting user background checks, and establishing a peer-to-peer sharing system, building trust remained a significant hurdle in the Indian market.

Another obstacle Drivezy encountered was leasing and purchasing cars due to financial constraints. This posed challenges in expanding their fleet and meeting the demands of their growing customer base.

Furthermore, the COVID-19 pandemic severely impacted businesses reliant on transportation and mobility, including Drivezy. Enduring the economic downturn for over a year, the Bengaluru-based car and bike rental startup recently decided to be acquired by Yamaha. Reports suggest that the acquisition will be valued at approximately $45-50 million, marking a significant development for the company.

Drivezy – Funding and Investors

Drivezy – Growth

Drivezy is experiencing rapid growth during a pivotal moment in the transportation industry. The company boasts a customer base of approximately 1.5 million registered users, with an impressive 93% falling within the 18-35 age group. Cofounder Ashwarya Singh revealed that Drivezy has successfully processed over 400,000 bookings and currently operates with 500 employees across 11 cities.

Key Statistics:

• Operating Cities: Drivezy operates in 21 cities across India.
• Average Monthly Customers: The platform serves an average of 200,000 customers monthly.
• Average Monthly Pending Requests: Drivezy receives around 2,300 pending requests on a monthly basis.
• Average Monthly Revenue: The company generates approximately $150,000 in monthly revenue.
• Average Monthly Gross Merchandising Value (GMV): Drivezy achieves an average monthly GMV of $950,000.
• Commission Structure: Drivezy earns a commission ranging from 15% to 30% on each successful transaction.
• FY18 Performance: In 2018, Drivezy recorded a GMV of $32 million, marking a remarkable 200% growth compared to 2017.

Future Plans:

Drivezy has ambitious targets for growth, aiming to reach a gross sales figure of $80 million in 2019. Additionally, the company has plans to expand internationally by launching operations in the United States, starting with a fleet of 200 cars in San Francisco. Drivezy also has plans to venture into Southeast Asia in the near future.