In its third quarter, personal car rental startup CarRental has seen strong growth in India, driven by growth in car ownership rates, which are now at an all-time high.
CarRrent is looking to expand into more markets and is planning to launch an app in 2017, the company says.
CarRental is the only car rental service that has made a real difference in the lives of India’s poor and those living with chronic conditions.
The startup has over 5 million users in India and has been able to make a positive impact on people living with conditions that would otherwise not have a place to live.
“I believe the average Indian person would be happier with a good car than with an auto-rickshaw,” says co-founder and CEO Deepak Kulkarni.
“If we can make cars as affordable as possible, we can help them save for their future.”
CarRrent’s car rental apps in India are mostly aimed at the wealthy and have seen positive results.
While the company offers a car rental app in its app store, it doesn’t yet have an app for car rentals in the state of Maharashtra, which has over 10 lakh cars.
This has caused concern for the company.
The company says that it has already received some criticism from people who have been frustrated with their car rentals and feel that it is taking away from their time to be at home with their children.
The car rental sector in India is still very young and the government does not yet have any plans to provide a car subsidy scheme to help lower-income people.
“People are living longer than ever, but this does not mean they have money to spare to buy a car,” Kulkerni says.
The Indian government is also trying to reduce the cost of car rentals to make it easier for people to pay for them.
In November 2016, the government passed a law that allows a person to rent a car at a fixed rate, but does not cover repairs or maintenance.
A person would need to make three payments per month to cover the cost for the rental of the car.
This is a major hurdle for the startup.
Car rentals have become a big part of people’s lives and car rental companies have struggled to keep up with the demands of this growing industry.
“We are trying to bring a different model that is much more affordable,” Krakarni says, adding that the company is planning on launching an app soon.