The car and rental business is estimated to have a value of $15 billion. However, most automobile rentals today function in an unorganized manner accounting for almost 90% of the market (around $12 billion). The organized rental vehicle business includes, among other things, the on-demand automobile rental market and the employee mobility market.
What is Savaari?
Savaari Vehicle Rentals is an online cab booking aggregator that offers consumers dependable and high-quality intercity and local car rental services. Its services include intercity cabs, one-way drops, airport transfers, and hourly rentals in the local area. In terms of geographical coverage, they have been the largest chauffeur-driven vehicle rental company in India for the past decade with offices in 1800 locations across India to assist people commute.
What is their business strategy?
The business strategy of Savaari is to lease or rent automobiles from merchants. There are no cars owned by the firm. It took time for Indian customers to grasp the service and accept their innovative approach in the pilot year. However, in their second year in business, they were profitable. While being entrenched in its core competency of vehicle rental services, Savaari’s diversification strategy has always been driven by client requirements.
After a few years into the business, Savaari raised its Series A investment from Inventus Capital Partners in March 2012, and its Series B round headed by Intel Capital and Inventus Capital Partners in September 2013. The service currently has an annual revenue of Rs 80 crore after 14 years in business.
What services do they offer?
Savaari offers the following services on road trips, utilizing its tech infrastructure and in-house experts:
Outstation round trip rentals : This is one of the most cost-effective and high-quality options available. They position themselves as a travel partner for their customers, rather than being a mere transportation provider.
Intercity one-way drops : The company has over five lakh routes where consumers may take a drop from one city to another and simply pay for one trip.
Flat-rate airport transfers : Regardless of the customer’s pick-up or drop-off location, Savaari charges a low, one-time fee to all of their clients who choose this service.
Rentals by the hour for local travel : Customers who use this service can keep the car and driver with them for the entire day. The packages range from 4 hours/40 kilometers to 8 hours/80 kilometers to 12 hours/120 kilometers, with clients paying for additional hours and kilometers based on their usage.
Booking services : Customers may book their flights on Savaari’s website or their Android and iOS applications.
Gaurav Aggarwal, CEO
Gaurav Aggarwal, a former Cisco employee, flew down to Roorkee, India, in 2004 to see his family. Gaurav decided to arrange a cab service ahead of time to transport him from the Delhi airport to the charming Uttarakhand town. Gaurav was surprised to discover that in the national capital, there was not a single trustworthy online vehicle rental choice. This gave Gaurav fuel for thought, and he went on to create a vehicle rental firm to serve people like him who need to commute great distances but don’t know their way around the city. He explored the concept with his cousin, who worked in the travel sector, and learned a lot about the industry. He spent two years conducting the study before launching the company in two thoughts. He co-founded Savaari in 2006 while moonlighting with three other co-founders — Mohit Khanna, Rahul Khanna, and Manik Shah — who were full-time company managers in India. Savaari started operations in 2006. Gaurav started with a low-budget capital of Rs 55,000. After spending some time in the US, Gaurav returned to India in May 2011 to work full-time with Savaari.
Competition from Ola and Uber
While businesses like Ola and Uber focus on same-city commuting, Savaari caters to consumers searching for intercity or interstate transportation. Savaari sets itself apart from its competition by combining clever technology with a strong dose of operational expertise. The company’s tech-based platform can use this to collect the best-in-class taxis and drivers on the one hand and assign the most appropriate cab and driver to its clients on the other, all at the most reasonable prices.