Zoomcar Takes on Ola and Uber with New Cab Rental Product

Zoomcar is set to introduce a chauffeur-driven cab rental service in Bengaluru, marking its foray into a broader segment of the transportation market, the self-drive car-sharing platform revealed to Reuters on Friday.  

This launch comes on the heels of significant changes within the company, including the exit of co-founder Greg Moran as CEO after a decade-long leadership, during which Zoomcar went public in the United States.  

The company will face stiff competition from established players like ola and Uber, which dominate the market with intra-city ride-hailing and cab rental services.  

Zoomcar’s new offering will cater to rental durations from two hours to over a month, targeting the growing demand for driver-inclusive services. 

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"In India, most of the market is oriented towards cars with drivers, making it significantly larger than self-drive options," said CEO Hiroshi Nishijima in an interview.  

Earlier this year, Zoomcar exited international markets due to funding challenges and high marketing expenses. In November, the company expressed concerns about its ability to continue as a going concern amidst ongoing losses and financial pressures.  

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The cab rental service, available through the Zoomcar app, will allow customers to choose specific cars rather than broad categories. To minimize costs, the company will aggregate vehicles and drivers rather than owning assets or hiring full-time staff.  

Zoomcar plans to price the service competitively without aggressive discounting or incentives. The company is currently raising funds to repay debt, address monthly losses, and invest in growth, Nishijima added.  

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