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Old 16th May 2017, 21:02   #16
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Default re: Revv's subscription model: Rent a car for 30k/year? Oops, it's actually 25K/month

30,000 a year sounds too good to be true, especially considering that the Annual Maintenance, Insurance, Road side assistance blah blah is also on the company expense.

If one takes the interest cost of a new car + maintenance + insurance, then 30k does not even cover a month's expense.

But then when it comes to making available x number of cars for a city, then it makes sense. Lets say they make available 50 cars (assume average cost of car is 700,000) under this scheme for Pune whereas the subscribers that go for this scheme are like 1500, then it makes little bit of business sense.
But then if this makes business sense, it makes no sense for the subscriber, because the chances of you getting a car when you actually need it are like 3% (50/1500).
I for one do not want to be relying on the 3% probability after paying 30k. More so when there will be no clarity on what car will be available and in what condition.

Last edited by vinit.merchant : 16th May 2017 at 21:04.
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Old 16th May 2017, 21:43   #17
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Guys relax. I have a feeling it's the price to use it for a certain no of days or hours or kms. Not 24x7 for 365 days. It's meant to provide a compelling pre paid usage cost up to a certain extent which is better than a one off rental deal. That's my guess at least.
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Old 16th May 2017, 21:55   #18
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Default re: Revv's subscription model: Rent a car for 30k/year? Oops, it's actually 25K/month

In case somebody finds out how it works (i.e. the business model), please share back with the group. On the face value, it seems quite a difficult equation to work out.
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Old 16th May 2017, 22:43   #19
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Default re: Revv's subscription model: Rent a car for 30k/year? Oops, it's actually 25K/month

Incidentally, moneycontrol.com has edited the article -> annual subscription starts at Rs. 25,000 per year apparently, not 30K.

Basically, it all boils down to this -

- If it is Rs. 25,000 per year for a 10 year old Alto, and higher rates for newer or more expensive cars, then the business model makes sense. It's a win-win for both customers and the company. I might be interested in picking up a 5 year old Mitsubishi Pajero for 6 months, and not bother about service or maintenance issues.

- If it is Rs. 25,000 for a new or almost new Tata Nano (and higher rates for other models), then there is no way such a company can survive over a long term. It will end up being another avenue for blowing up VC money. Good for customers initially though.
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Old 17th May 2017, 08:31   #20
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Default re: Revv's subscription model: Rent a car for 30k/year? Oops, it's actually 25K/month

Greedy us ;-)

Well, check this article - it reads Rs 25000/- per month.
http://www.moneycontrol.com/news/bus...p-2279789.html
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Old 17th May 2017, 08:46   #21
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Quote:
Originally Posted by smartcat View Post
Incidentally, moneycontrol.com has edited the article -> annual subscription starts at Rs. 25,000 per year apparently, not 30K.

Basically, it all boils down to this -

- If it is Rs. 25,000 per year for a 10 year old Alto, and higher rates for newer or more expensive cars, then the business model makes sense. It's a win-win for both customers and the company. I might be interested in picking up a 5 year old Mitsubishi Pajero for 6 months, and not bother about service or maintenance issues.

- If it is Rs. 25,000 for a new or almost new Tata Nano (and higher rates for other models), then there is no way such a company can survive over a long term. It will end up being another avenue for blowing up VC money. Good for customers initially though.
Now the article says 25000 per month and not per year. That changes the whole equation isn't it. ☺️
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Old 17th May 2017, 08:50   #22
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Default re: Revv's subscription model: Rent a car for 30k/year? Oops, it's actually 25K/month

Not sure about their subscription model but I ve rented with these guys on two occasions and found them to be hassle free and straight forward. The best part about their model is the pick from one location and drop to another and one way travel.

Last edited by bigron : 17th May 2017 at 08:52.
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Old 17th May 2017, 09:17   #23
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Default re: Revv's subscription model: Rent a car for 30k/year? Oops, it's actually 25K/month

Quote:
Originally Posted by Abhi_Automobile View Post
Just for a lil bit of context: The guy is ex Partner from a top Strategy Consulting firm, and IIM and NIT pass out. Seems improbable that the guys are a bunch of dumb rookies.
Such pedigree is useful to attract the VCs. But the market doesn't care, unless they add real value. To allow a story to go out to press claiming 30k/year, when the actual plan was 25K/month... what kind of attention to detail we are witnessing here?

Reminds me of an project I was involved in 20 years ago. The salesmen of a very reputed vendor (whom I was part of) bagged a contract by quoting a certain figure. One part of the contract was priced at $5 million. After the contract was awarded, they brought in the experts from their German division to implement that part. After one look at the requirement, the German expert curtly informed that the actual cost of that work is $30 million, which was higher than the price of the entire contract. Needless to say, we got thrown out.
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Old 17th May 2017, 10:14   #24
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Default re: Revv's subscription model: Rent a car for 30k/year? Oops, it's actually 25K/month

Quote:
Originally Posted by MuraliR View Post
Greedy us ;-)Well, check this article - it reads Rs 25000/- per month.
Quote:
Originally Posted by DCEite View Post
Now the article says 25000 per month and not per year. That changes the whole equation isn't it.
If this can't be called being taken for a ride, I don't know what else can be .

Many wannabe renters had lost sleep yesterday, trying to calculate the various combination of cars that could be had at a mouth watering price of 2.5k/month.

Please read the bold part in the last sentence once again and you can hazard a guess where this confusion could trace its origin to!

My take on this?
  • A secretary in hurry to catch Bahubali 2 must have inserted an additional decimal point between 2 & 5k or missed adding a zero (to 2500) in the press note.

    OR

  • An over-eager subeditor at moneycontrol.com dreaming of his maiden car must have imagined that decimal point or lost sight of a zero.

Its plain mathematics: 2,500x12=30,000
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Old 17th May 2017, 11:06   #25
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Default Re: Revv's subscription model: Rent a car for 30k/year... Oops, 25K/month

Having rented cars few times in the past year, here is what I feel.
My experience with Zoomcar has never been great. Got an ill maintained Figo once, their pick up guy fought with me once and once they cancelled.
So, the last time that they cancelled, stating whatever reasons, I tried Revv as I had hotel and other bookings done and could not afford to cancel it.

Now, the service was fantastic. Home delivered, on time. Had a good weekend and the guy came for picking it up.
Now, how Revv works is they mention the KM limit during booking, which when crossed you have to pay per KM on the exceeding KMs. Also, you have to refill the Fuel to full tank while returning.
When I compared it with Zoomcar, Myles and the likes, this worked out to be far more expensive. No KMs included (as the KM limit is just a limit, those are not free KMs) & refill to tankful. Somehow I felt cheated. Why mention the KM limit then and ask us to pay more if we want a higher KM plan + we pay for the fuel too. Overall it gets confusing and expensive.

A 24 Hr trip to Bhandardara costed me Rs. 8,400. I refuse to believe the plan. Expect a lot of hidden costs + availability issues + delivery pick up charges + extra KM charges + fuel charges + ?

I got so frustrated when Zoomcar cancelled on me twice, I got a used Civic

At my disposal, no cancellation of plans, no restrictions on KMs, no worry of a guy calling at the last moment and asking if I can come and pick up the car from their x destination as the delivery person is not picking up and what not.

EDIT: Missed the latest posts with the corrected 25K/Month bit! Apologies. Keeping the post though.

Last edited by driveanddrive : 17th May 2017 at 11:31.
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Old 17th May 2017, 11:18   #26
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Default Re: Revv's subscription model: Rent a car for 30k/year? Oops, it's actually 25K/month

Wow, that is a H.U.G.E. U turn from 30K per year to 25K per month! At 25K per month it stops making sense at least as a full time replacement for a car. If anyone needs a car for short term like a couple of months, then it *may* work out feasible for that person, depending upon what is written in fine print of the scheme.
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Old 17th May 2017, 11:20   #27
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Default Re: Revv's subscription model: Rent a car for 30k/year? Oops, it's actually 25K/month

Guess there was a typo in the original article and they missed a 0. It's 3 lakhs a year, not 30k.

What kind of a silly company releases a new product / service, and forgets to update its website? I'm not seeing the monthly rental plan on revv.co.in.

I am seeing another neat option though called 'Revv to Work'. Rent a car from Monday through Thursday (low days for rental companies) for merely 600 bucks a day (Grand i10). An Aspire costs 700 bucks a day, while the Sunny comes to 750. They even have the EcoSport for 800 bucks / day. Related Link.

Back to the monthly plan, there is no way 25k / month is going to 'replace' car ownership. For one, you'll have a limited choice of models, get the base variant and drive around with a yellow number plate. The real deal killer will be this = you can own a better car at a lower EMI on a 5 year loan. Monthly rentals might work for professionals visiting a city or holiday goers, but not regular people aspiring to own a car. Saving on maintenance is hardly a selling point when you consider the overall reliability of today's cars, once-a-year service visits & 5 to 7 year extended warranties.
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Old 17th May 2017, 12:03   #28
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Default Re: Revv's subscription model: Rent a car for 30k/year? Oops, it's actually 25K/month

More updates:

Quote:
Originally Posted by Samurai View Post
To allow a story to go out to press claiming 30k/year, when the actual plan was 25K/month... what kind of attention to detail we are witnessing here?
Revv just called me a short while back and stated they haven't released any information yet. But I'm still not sure then as to how moneycontrol.com got news of this annual plan which is launching in two days.

Quote:
As discussed, I’m writing to clarify that there has been no formal press note/release from Revv on this product as of 11 am on 17th May, nor any pricing details that we have formally communicated to the media.

However when we noticed the article being discussed and the price quoted in that, we did place a request to correct the price.

We will be issuing a press release very shortly to share the product features etc., and exact pricing will go public on May 19 along with the launch of the product. Thanks!

Regards
Anupam
And the Press Release is now here too:

Quote:
Revv launches SWITCH- Asia’s first ever multi-brand car subscription platform

‘SWITCHing it on’ on 19th May, 2017

New Delhi, May 17, 2017: Revv, the Delhi-NCR based shared mobility platform, is launching SWITCH (which goes live on May 19th), a unique and innovative service that lets users subscribe to a curated fleet of cars, by-the-month or by-the-year. Revv claims that this is the first ever, multi-brand car subscription platform in Asia, and is essentially an attempt to re-imagine the 100-year old practice of car ownership. Revv raised its Series A round of funding in November 2016 from Edelweiss Private Equity, and since then, have added Mumbai, Pune, Chennai, Jaipur and Vishakapatnam to their geographical footprint.

Speaking at the launch, co-founders of Revv said, “Mainstream adoption of shared mobility will increasingly depend upon an ecosystem of services coming together, which collectively cater to the full set of needs of a person who wants to adopt a lifestyle based on shared mobility v/s traditional car ownership. While some use-cases have been increasingly well-served by cabs and hourly self-drive rentals, there is a clear gap in services tailored towards longer term mobility.”

“For users with fast-changing lifestyles, or for users with tactical requirements (say, for a few months), buying or leasing a car is impractical, because of the long-term commitments and hassles involved in purchase, maintenance and resale. Switch aims to change that and fill this gap. It is a subscription service, available by-the-month or by-the-year. It makes accessing a car much more convenient and hassle-free, through what is essentially a ‘no commitments’ relationship. The user can get started whenever he wants, without worrying about fixed long-term expense, and switch it off whenever he wants. He can switch between car models as frequently as every month, e.g. using a hatchback for day-to-day usage, while switching to a nice SUV for vacations. He can even maintain his subscription across cities. The upfront expense will also be much lower than buying a car because of no down-payment.”

“This is relevant for anyone who is looking for a solution without long-term commitments and hassles. It could be an IT professional who spends most of his time onsite and needs a car only for the few months when he is home, or a group of friends wanting to share a car and split subscription costs, or someone on a temporary assignment in a new city, or someone who just does not want to stay stuck with one car model for several years.”
“Sharing a subscription is more practical than sharing one’s own car, and we see strong potential in that. For the Phase 2 of this, we will develop an app to help a user share his car with friends/neighbours when not in use, to substantially reduce his monthly expenses. The app will enable easier discovery of potential sharing partners and a smoother sharing experience.”
“The fleet will include a wide range of models, including MUVs, SUVs, cross-overs, sedans and hatchbacks.”

Switch being a bold and creative platform, can have significant implications for both consumers and car-makers. For consumers, owning a car could become a matter of ordering it over an app, minus the hassles of maintaining it, and with lesser fixed expenses. For car-makers, this can be an entirely new source of volumes and revenue, because it fills a gap that was not being addressed by traditional car ownership. Having nearly tripled its fleet and geographical presence in the last five months, Revv now intends to expand its product portfolio to address needs and use cases of shared mobility that are not being addressed by any other available products.
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Old 17th May 2017, 12:38   #29
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Default Re: Revv's subscription model: Rent a car for 30k/year? Oops, it's actually 25K/month

Quote:
Originally Posted by GTO View Post
Revv just called me a short while back and stated they haven't released any information yet.
Released, may not be. But leaked, yes.

To give moneycontrol.com its due, it couldn't have imagined the scheme out of thin air. It was either a hard earned but incomplete scoop or a case of cleverly planted insider information. The subsequent press release does give credence to the news.

Quote:
And the Press Release is now here too:
Reading the press release certainly gives an impression that it is less of a press release and more of an infomercial bordering on paid news. Specially, the first paragraph couldn't have been part of any press release.

@GTO, next time they call you, please ask the Revv guys to read this. They need to handle their releases with a lot more maturity and responsibility.
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Old 17th May 2017, 13:12   #30
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Default Re: Revv's subscription model: Rent a car for 30k/year? Oops, it's actually 25K/month

Quote:
Originally Posted by dailydriver View Post
Reading the press release certainly gives an impression that it is less of a press release and more of an infomercial bordering on paid news.
All press releases are like that . We usually trim it to include only the informative stuff, but I didn't this time as there was a lot of confusion on this offering by Revv. Kept it as is.
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