Formula2Ride is an in-demand self-drive car rental service platform. The quality-driven technology-first platform is backed by more than a decade of domain expertise in urban mobility of its parent company, Formula Group.
In an interaction with BW Disrupt, Raman Narula, Founder & Managing Director, Formula2Ride shared his venture journey.
Business Model Launched in 2016, Formula2Ride is a platform that offers flexible self-drive car rental solutions with round-the-clock availability at a cost-effective rate. The platform features highly sought-after customer-centric services which include insured vehicles with all-India permits, unlimited driving distance, instant refunds, doorstep delivery and 24x7 customer support. The startup takes special care of safety, security, and comfort of its customers and only features airbag-enabled, fully-insured vehicles with all-India permits.
Services Formula2Ride is an ideal service for top level executives/ heads, who prefer being driven or like to self drive in premium vehicles when traveling for official/personal purpose rather than commuting in private yellow/black cabs or white cabs currently provided by cab aggregators. While our corporate offerings provide seamless travel experience to professionals who relocate to different locations or for intra-city for official purposes, our cars are also increasingly being rented for long weekend getaways as well. This year specifically marks a good one to rent a car through Formula2Ride and go on a relaxing vacation on any of the numerous long weekends spread throughout the calendar of 2017.
Geographical Presence The self-drive solution of Formula2Ride is available in 5 cities Ahmedabad, Bangalore, Hyderabad, Pune, and Delhi.
Monetization Model and Traction DetailsWe have had revenue flow from day one. Long weekends have been the biggest draw to self drive for city use & to weekend getaways around 100- 300 km around the city. Demand during events like weddings has high or from large families wanted to use SUVs for going on picnics or visiting relatives. Demand for cars is also there during breakdown or downtime of their own cars for repairs or servicing. We have 8000+ sign ups till date and currently we are receiving 20- 30 orders daily.
Funding PlansFormula2Ride has been funded by its parent company Formula Group so far. As we build traction & learn more grass root realities of this business & customer behaviour trends, we will continue to operate on a beta testing phase but generating revenues & pushing our brand into the market. Once we have a strong hold on the market & operations & a reasonable customer base, then we will go for funding by end of 2017.
Future PlansWe plan to introduce some new services & unique features in our app to create differentiation between our offerings from our competitors. We plan to focus on business 2 enterprise models while we continue to lure the retail market. We wish to position ourselves as a holistic car rental online platform catering to all aspects of car rental services.
Current scenario of self drive service in the countryThe India self drive car rental market has displayed a strong growth over the five year period from FY’2010-FY’2015 on account of increasing income of households, increasing number of players in the market, rising leisure travel and others. From on-demand service to self-drive, car rental space has been evolving continuously in the country. According to Ken Research, the Indian car rental market revenues will grow at a considerable CAGR rate and is expected to touch Rs 800 billion by 2019. In the past two years, the market has evolved and witnessed a huge growth, both in terms of users and service providers.
Self-driving in the Car Rental segment is becoming a popular concept especially in the metros of India for weekend getaways. It is targeting the young, middle class and leisure travellers in showcasing various destinations of India. People prefer to rent a car nowadays for a number of days to explore any destination through Self-drive tours. Self-driving in car rentals also becomes a bonus for domestic and international travellers in India through adventure trips, road trips and solo trips.
Formula2Ride is focusing on integrated technology, various campaigns, packages, and services to increase its user base. Considering the population and emergence of the Indian market, we are expecting our market to grow on the same line.
