Indian car rental start-up Zoomcar eyes Vietnam as a major Southeast Asian market to take advantage of the rising demand for car ownership among its expanding middle class.
Vietnam is set to account for 10 per cent of Zoomcar’s revenues in the next financial year, which translates to $8M, Kiet Pham, Vice President and Country Director of Zoomcar Vietnam said.
In Southeast Asia, the company is focusing on Indonesia and Vietnam, and plans to invest $100M in the two countries. In Vietnam, it has around 1,000 cars for rent, or 10 per cent of its total global number. To achieve the number, Zoomcar has been giving out large rewards to car owners to list their vehicles on its platform. An owner who listed during the four-day holiday earlier this month received $131.
Zoomcar is also willing to burn cash to change Vietnamese consumers’ habit and make them familiar with renting cars. Kiet said the company is willing to spend $25M to expand its presence in Vietnam. It has raised $207M since its establishment.
