Revv, a Hyundai backed shared mobility platform, recently stated they will be moving to a pay per use business model as car-sharing adoption continues to increase.
Anupam Agarwal and Karan Jain, Co-Founders of Revv, are confident about the growth potential of the car-sharing industry in India. Agarwal says there is a lot of momentum to be seen on the ground. Revv’s latest offering, OPEN, a long-term car subscription service, has got more than 300 subscriptions since its launch in December. In an interview with Fortune India, the ex-McKinsey executives spoke about OPEN and how it can help achieve the company’s growth plans. “We’re today doing an annualised revenue run rate of about $15 million dollars. In the next 12-18 months, we need to get that number to 100,” says Agarwal.
How do you look at the car-sharing industry in India today?
Agarwal: We see a lot of momentum picking up in this space. Lots of action is happening on the ground. And that’s not only pertinent to India but also across the globe. I think there are more and more people who want to move from classical ownership to subscription. Therefore, the pay-per-use model in our minds is what is going to be the future. It’s happening much more globally and it’s only catching up in India. India is a country with only 2% car penetration, there is a real opportunity for us to step ahead and make that change happen much like what happened in the telecom space. People will get a car for as long as they need it and will move away from being committed to that car for five-six years.
Read more here