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Old 19th May 2017, 13:02   #31
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Default Re: Revv's subscription model: Rent a car for 30k/year? Oops, it's actually 25K/month

Just received email from REVV on their Switch subscription service.
They have a monthly and annual subscription available.
Monthly subscription starts from 24999/- and Annual subscription from 21999/month.

More details at http://www.switchbyrevv.com.
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Last edited by speedmiester : 19th May 2017 at 13:25.
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Old 19th May 2017, 13:48   #32
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Default Re: Revv's subscription model: Rent a car for 30k/year? Oops, it's actually 25K/month

Went through the website. A sample comparison for Swift shows that for 4 year loan with 0 down payment, the EMI is cheaper than Switch subscription by 4k. Whatever, upfront payment for ownership is being shown will anyways get offset in 2-3 years. Am I missing something?

Revv's subscription model: Rent a car for 30k/year? Oops, it's actually 25K/month-switch.png

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Old 19th May 2017, 14:06   #33
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Default Re: Revv's subscription model: Rent a car for 30k/year? Oops, it's actually 25K/month

Please remember the adage "If something is too good to be true, it probably is." Now read on.

Here are the prices of the cars available on the site.

Petrol Cars:

Celerio AT - 24,999/21,999
Ciaz AT - 36,999/31,999

Diesel Cars - Manual Transmission:

Grand i10, Swift - 24,999/21,999
Amaze, Dzire - 28,999/25,999
Ertiga - 30,999/26,999
Ciaz, Sunny - 31,999/27,999
Ecosport - 33,999/29,999
City, Scorpio - 36,999/31,999
XUV - 44,988/38,999

The first number is the rate per month in case of standalone, monthly subscription. The second is the discounted number per month for those availing annual subscription. The former includes one free switch credit but the same is chargeable in the latter.

Though insurance, repairs and maintenance are included in the price, VAT(?), toll charges, inter state taxes and most importantly fuel is not.

Not sure about the variants of the aforementioned vehicles that will be made available.

Disclaimer: Not associated with Revv/ Switchbyrevv
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Old 19th May 2017, 16:41   #34
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Default Re: Revv's subscription model: Rent a car for 30k/year? Oops, it's actually 25K/month

There are so many issues that can be seen here. One is the subscription fee being higher than EMI. How does this sound better? Can't figure out logic behind this sales pitch. Additionally, paying an EMI fetches you a new car, whereas the Revv subscription will not fetch you a new car. It might be old, maintained poorly as is the case that I have seen with most car rentals.

There are limits to kilometers being driven, on the maximum speed that you can do. All this takes away the replacement feeling that these guys want to generate "of owning a new car".

The only advantage I see is that you can switch your car every month, but that's just flashy and does not have any intrinsic value. It also depends on many conditions like availability of desired car, additional price bump etc.

I went through the FAQ section and I really do not see any novelty here.

Now novelty does not come only in the form of cheaper offers. It can also come in form of ease of ownership, ease of maintenance etc. It has nothing remarkably better to offer than a traditional car ownership.

Or is there something that I've missed out?
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Old 19th May 2017, 16:51   #35
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Default Re: Revv's subscription model: Rent a car for 30k/year? Oops, it's actually 25K/month

The only reason to go for this option is when you want to rent a car for 7+ days. In that case, one anyway ends up paying close to 20-25k using normal renters like zoomcar etc. Here, it is better to have the car entirely at your disposal for the same amount for the entire month.
I understand that zoomcar also throws in free fuel, but for 3-4k more, I would prefer to have the car completely at my disposal for the entire month, and also have the freedom to have a flexible vacation plan not restricted by the fixed dates for which the car has been hired.

Apart from that, renting out month-on-month does not make any sense.
A 5 year car loan cost ~ 2k per lakh. For the switch rent of 26k for the celerio, one can buy a car costing 13L on road (or 11L if one considers yearly subscription), and after the end of the 5 year EMI's, also gets a good resale vaue out of the car.
So this one's a strict no-no.
There are exceptions where one is migrating to the city for short term only, say like 1 year max. Then this makes sense,
else TaTa, Bye Bye.

EDIT: Would it not make a lot of sense for the Uber/Ola folks? Probably Revv will have some policies that will not allow such usage. Maybe capping on Kms or maybe something else.

EDIT 2: I do not know why they are advertising stuff like no initial outgo of payment (i.e. downpayment). That is the thing of the past. One can easily get loan for the entire OTR cost of the car, including registration and insurance.

Last edited by vinit.merchant : 19th May 2017 at 17:00.
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Old 19th May 2017, 17:22   #36
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Default Switch - Car subscription service by revv

revv has launched a new service for car subscription called Switch. Under this service customers can subscribe to a car either for a month or year. Switch also allows the customers to switch the city and car over their subscription period.

Major highlights of the service are,
  • Switch cars and cities
  • Subscribers can switch off the service for a month, (i.e. No charge) and can resume again (i.e switch on) when they want.
  • No maintenance hassles
  • No down payment
  • Full insurance coverage
  • Cars will be newer ones or with less than 20K on odo
Prices:
Name:  Untitled.png
Views: 1816
Size:  17.2 KB

Major low points are,
  • If you switch to a car model that is priced either higher or lower from your current car model, your monthly fee would change.
  • Subscribers would be entitled to 1 Switch credit for every month of the subscription. Which they can use to switch the car. For those on annual plans, buying these credit (one credit is 2000/-) is the only way to switch cars.
  • there is a monthly limit of 2500 Kms (=30,000 Kms per year). Over which will be charged on per KM basis based on the car type

More details here: Switch - By revv
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Old 19th May 2017, 17:45   #37
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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 vinit.merchant View Post
Would it not make a lot of sense for the Uber/Ola folks? Probably Revv will have some policies that will not allow such usage. Maybe capping on Kms or maybe something else.
The cap is at 2,500 kms per month, which is quite low considering 1-2 weekend trips a month will easily exhaust 2,500 kms allowance.

May be if someone wants to rent a car for just one month, this would probably be cheaper than zoom or myles. Apart from that, there seems to be nothing new here.
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Old 22nd May 2017, 14:50   #38
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Default Re: Revv's subscription model: Rent a car for 30k/year? Oops, it's actually 25K/month

Looking at the pricing, this is a dead-on-arrival product. No aspiring car owner is going to consider it.

The only segment they can target is professionals temporarily visiting a new city, but even then:

1. How many do for a month? A small % I'm guessing.

2. Even then, the said professionals might prefer to just use Uber & Ola. Bring in chauffeur-driven comfort, the cost of fuel & the fact that the day might entail 1 or 2 destinations (for the most part) and cabs might actually be cheaper!
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Old 22nd May 2017, 16:01   #39
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Default Re: Revv's subscription model: Rent a car for 30k/year? Oops, it's actually 25K/month

Interestingly, a Rs. 6 Lakh (Celerio AT) car costs Rs. 24,000 per month while a Rs. 12 Lakh (Ciaz AT) car costs "just" Rs. 36,000 per month.

The biggest reason why Revv is unable to give a good offer to customers is because they are offering new or almost new car to customers. Revv will probably sell off the car after 2 years taking a huge depreciation hit. Instead, if Revv decides to hold on to the car for 10 years and offer customers a differential pricing (depending on age of car) for each model, then its a win-win for both customers and Revv.

Revv/Zoomcar's current business model is like building 10 hotel rooms, demolishing it after 2 years and rebuilding it again. So while Uber/Ola are offering great deals to customers while losing money, Zoomcar is offering bad deals to customers while losing money.

Revv's subscription model: Rent a car for 30k/year? Oops, it's actually 25K/month-zoomcar.jpg
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Old 22nd May 2017, 16:10   #40
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Default Re: Revv's subscription model: Rent a car for 30k/year? Oops, it's actually 25K/month

This is perfect for someone working abroad and who is coming home for 15-20 days holiday. Other than this, I don't see any reason why anyone would take it. Annual plan is as costly as buying a second hand car.

If a bunch of friends decide to share costs, they can use it for a month on sharing basis for weekend outstation trips with families. Not sure if the ride is limited to one person as a driver.

They should also consider weekly plans, which IMO will be more popular.
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Old 23rd May 2017, 11:10   #41
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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 silverado View Post
This is perfect for someone working abroad and who is coming home for 15-20 days holiday.
A big problem there too. I believe you have to hire in multiples of 30; looking at their website, you can't hire a car for 20 days or 40 days on a prorated basis in this scheme.
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Old 23rd May 2017, 11:41   #42
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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 smartcat View Post

Revv/Zoomcar's current business model is like building 10 hotel rooms, demolishing it after 2 years and rebuilding it again.
Revv's business model is yet to be seen since they are relatively newer entrants to the market, but I can say this for a fact that Zoomcar is not working on the '2 years' business model. They attempt to get the max useful life out of their fleet vehicles (I got a 1,00,000 kms 3+ yrs old vehicle on a recent rental from them which was nearing the end of its useful life). So there isn't any scope for attempting to use their vehicles for any longer than they already are. The losses are absolutely not due to retiring vehicles from the fleet too early. In US, the fleet vehicles are retired at about half of the mileage that Zoomcar puts on them.

Quote:
Originally Posted by silverado View Post
This is perfect for someone working abroad and who is coming home for 15-20 days holiday.
Even this might be a minuscule number. People who have been abroad for a few years no longer feel comfortable driving in the ever-crazier Indian traffic. There is also the risk of getting stuck in legal proceeding here in the case of an accident.

Quote:
Originally Posted by silverado View Post
If a bunch of friends decide to share costs, they can use it for a month on sharing basis for weekend outstation trips with families.
Someone mentioned a limit of 2,500 kms per month under this plan. So it may not turn out to be sufficient or economical (in case one has to be pay for additional kms) for sharing between multiple users.

Last edited by mustang_shelby : 23rd May 2017 at 11:44. Reason: Spelling
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Old 23rd May 2017, 13:51   #43
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Default Re: Revv's subscription model: Rent a car for 30k/year? Oops, it's actually 25K/month

So, if I'm to go to ladakh from Delhi for a 15 day tour, I can get an ecosport for 34k? Pretty sweet deal IMO. This saves me from all the wear and tear of my car, and can be easily shared among 4 friends who are travelling. Taking my own car is a greater risk. Please correct me if I'm wrong
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Old 23rd May 2017, 14:08   #44
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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 namanchaudhary View Post
So, if I'm to go to ladakh from Delhi for a 15 day tour, I can get an ecosport for 34k?
All self-drive rentals explicitly state that the cars can not be taken to ladakh. This is what Switch website says:

Quote:
we do not permit taking these cars to Leh/Ladakh region, because of local unrest there against external cars
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Old 23rd May 2017, 17:18   #45
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Default Re: Revv's subscription model: Rent a car for 30k/year? Oops, it's actually 25K/month

All of us here are racking our brains to find a business case for Revv. I wonder if the guys at Revv even spent half a thought towards this!!

I do not wish to belittle them, but man, if this isn't a fiasco, what is??

I believe the 2 year recycle policy is an eye wash. When was the last time an rental agency gave you half a decent car??

All the talk of it being useful for Indian returning home for vacations. I can tell from experience, all my enthusiasm to drive is crushed when i get stuck in the first jam in Bangalore. I travel around in Ola/ Uber for local commute. My drives are limited to road trips with friends, everyone own a car, so we don't rent either.
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