31 Jul 2020
Posted in Automotive
Zoomcar’s partnership with ETO Motors for electric shared mobility is a win-win for both, says GlobalData
Following the news that Indian shared mobility giant Zoomcar has partnered with ETO Motors to boost electric mobility;
Bakar Sadik Agwan, Senior Automotive Consultant at GlobalData, a leading research and consulting company, offers his view:
“Zoomcar’s partnership with ETO Motors is aligned with the new business priorities that the company announced in late 2019. The company intends to focus on subscription service and electric vehicles as a part of business diversification strategies. By 2021, Zoomcar aims to increase its electric vehicle fleet to 10,000 vehicles. The company currently offers Mahindra E2O and Tata Tigor EVs under its vehicle subscription banner. The partnership marks Zoomcar’s entry into the first mile to last mile passenger mobility business, in addition to the existing vehicle sharing business model.
“ETO Motors has a portfolio of e-autos, e-rickshaws and electric three-wheeler cargo vehicles. The partnership is aimed to develop a co-branded digital shared mobility platform. The partnership will amalgamate Zoomcar’s proprietary technology, including AI-based platform to manage fleets and apps for customers and drivers with ETO’s assets, including electric vehicles to offer electric shared mobility services in India. ETO will also be benefitted by scaling up to new markets in which Zoomcar operates. Zoomcar presently operates in over 34 cities across the country.
“Zoomcar electric shared mobility roadmap has been quite strong since its inception. The company pioneered the electric car rental space by being the first company to offer a plug-in electric vehicle for self-drive in 2013. The company later partnered with Mahindra to offer E2O electric for self-drive. It started electric scooter sharing service in Bangalore and offered electric vehicles under its vehicle subscription business model. The partnership will further strengthen Zoomcar’s presence in the electric shared mobility business.
“The partnership is a win-win for the both the companies and offers significant untapped potential in the shared mobility space in India. It supplements Zoomcar and ETO’s electric vision through their respective expertise and offer them a competitive edge in the market.”