Investments, News

Cab Sharing Service CoolShare Raises $100K in Seed Funding

Mumbai-based Zoomot Services which operates CoolShare, a cab sharing service with dedicated routes in Mumbai, has recently raised $100,000 in seed round from angel investor Gopal Aggarwal. The startup is now looking to raise series A funding for further expansion.

The startup is now looking to raise series A funding for further expansion.

The startup is now looking to raise series A funding for further expansion.

The city residents can download CoolShare mobile application available for Android users, to book a seat and can also know the number of vacant seats in a cab running at regular intervals on pre defined routes. The app also facilitates a consumer to track of his cab on real time basis. It has its own fleet running on fixed routes and fixed schedules, making commuters free to book his seat without co-coordinating with others. The billing is point to point unlike other carpooling services which work on a splitting fare model.

Zoomot Services was founded in early 2015 by IITians Randeep Singh, Youmit Singh and Navneet Singh  with a vision of solving Urban commutation problems. Currently, it is having operations on 5 routes in Mumbai and planning to launch 20 routes in the city in next 6 months. Then the operations shall be extended in other metros and A-class cities.

It is currently seeing around 1500 transactions per month with an average of ticket size of Rs.110. Its app has around 500 downloads so far, and the company claims that around 70% of its customers are repeat users.

Talking about their pricing structure, Randeep said, “Different companies have different models. Some work on a subscription basis where you put in people in pools on a monthly basis, while some work on a per ride commission. We are running our fleet service at flat Rs.6 per seat per Km with no riding time and no waiting charges and no surge pricing which make us cheapest in the city.”

Commenting on the challenges that the startup is facing, Randeep says, “Visibility and market presence is one big challenge we are working on. Over the time we have streamlined our operations and getting good tractions and presence at present. Tying up with good institutes helped us in hiring. We got a lot of support through our own network. With proper contract management and benefits we have been able to control our fleet. Nonetheless, it still remains one area of concern.”

Going forward, the startup plans to work aggressively on digital marketing. Taxi aggregators Ola and Uber have also launched their ride sharing verticals – Ola Share and uberPOOL. French BlaBlaCar also connects private car owners with commuters, launched in India in January 2015 and secured $100 million funding from Accel Partners and Index Ventures to explore emerging markets in July 2014. Rocket Internet backed Brazilian Tripda was launched in India in November 2014. Now it will be exciting to see how new startups will compete with these players.

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