Savaari’s specialized services set to significantly impact the car rental industry in India
With 17 years of expertise, Savaari Car Rentals has astutely analyzed customer behaviors and preferences, leading to the development of innovative solutions
The ever-growing traffic congestion on the roads and unwillingness of self-driving and owing a car at a young age has swiftly pushed the use of mobile applications for availing affordable cab service. The upsurge has not only happened in the metro cities rather it has positively impacted the everyday lifestyle of people residing in tier 2 & 3 cities as well. Be it short trips within the city or intercity journeys, car rental sector has witnessed humongous growth. As per a recent report from the IMARC group, the India car rental market is projected to exhibit a growth rate (CAGR) of 16.80% during 2023-2028.
With 17 years of expertise in the sector, Savaari Car Rentals has astutely analyzed customer behaviors and preferences, leading to the development of innovative solutions aimed at enriching the overall travel experience. The company has unveiled a range of special services for its customers, a first-of-its-kind service disruption in the car rental that is sure to delight customers. Mr. Gaurav Aggarwal, Savaari’s CEO and Mr. Anand Dorairaj, VP & Head of Growth and Marketing, shares further details on the announcement:
Special services and the cities in which they are available
Anand Dorairaj shared details on Savaari’s newly-launched special cab services in 20 tier-1 cities across India. The services include
- Pet-friendly cabs, allowing passengers to travel with their pets comfortably.
- Assisted pickups where a chauffeur holds a placard and assists the customer, in public locations like the airport or railway stations.
- Driver Language Preference, that enables our passengers to communicate with the chauffeurs in the language of their comfort.
- Cabs with luggage carriers that cater to those with extra baggage requirements.
- New Car promise where we ensure that customers are provided with cabs that are no more than a year old.
“These services are available for various trip types, including roundtrip cabs, one-way drops, local hourly rentals, and airport transfers, catering to a broad spectrum of customer needs and preferences. Customers can upgrade their cab bookings by selecting one or more of these services at affordable rates” adds Anand.
How these services are going to impact the car rental industry in India at large
Historically, personalized services in this sector were limited and predominantly offered by small, offline vendors within confined areas. Anand Dorairaj shared his insights “large brands, despite their expansive reach, often struggled to provide such customization, leading to a commoditized approach to cab services. However, by responding to customer demands for specific features like language-specific drivers, pet-friendly cabs, and assisted airport pickups, Savaari addresses these gaps on a larger scale. This move not only enhances the customer experience but also sets a new standard for personalization in the industry, likely prompting other players to innovate and elevate their service offerings”.
Idea behind starting this range of special services and how significantly these will boost the company's business
Talking about the launch of Savaari’s special range of services Gaurav Aggarwal shared “it was inspired by recognizing the patterns in passenger’s requirements for personalized services. This insight led us to integrate various services designed to elevate the overall travel experience, focusing on passenger comfort and convenience. We aim to transform travel from mere transportation into a uniquely tailored experience for each passenger, whether for city drives or outstation trips. We anticipate that these services will significantly boost our business, expecting a 5% revenue contribution in the first year and projecting a growth of 20% of our overall revenue within the next three years.”
Possible hurdles for companies in offering such services and how Savaari did it
Traditionally, road trips have been viewed merely as a means of getting to the destination, with little emphasis on the experience itself. Personalizing this experience, particularly at scale, is a significant hurdle, especially for companies operating across diverse regions.
Gaurav Aggarwal says “balancing customized services at scale requires a hybrid approach to operational efficiency that is a mix of technology and human expertise. This approach is core to Savaari’s DNA which has given us the confidence to launch the first-of-its-kind special services in the Car Rental industry”.
Distinguishing factors that make the existing/potential customers choose Savaari over other players
“At Savaari, we pride ourselves not just on the comfort and personalization of our services, but also on the unique, offbeat experiences we offer. Our chauffeur-driven cabs are available for extended hours, providing the flexibility to explore at your own pace. We encourage delightful detours and pitstops, enriching the journey beyond just reaching the destination. What sets us apart is our drivers, who are not only courteous and customer-centric but also knowledgeable about local areas. They serve as both drivers and guides, offering insights into local culture and hidden gems, making every Savaari trip a journey of discovery and exploration” explained Anand Dorairaj.
Since the end of COVID in 2022, Savaari’s customer landscape has seen a shift towards a higher share of patronage. Prior to 2022, over 70% of the bookings registered were by new customers while the remaining 30% were by old/repeat customers.
“As of December 2023, the ratio has changed to 55% of new customers and 45% of repeat customers. The shift towards higher repeat rates is testament to Savaari’s quality of service and brand promise. We expect the repeat customers to increase to over 50% over the next 12 months, thus making them the majority contributor to Savaari’s growth” Anand added.
Key milestones that Savaari aims to achieve in the next couple of years
Gaurav Aggarwal highlights the milestones that the company has set for the upcoming years. They are -
- Become a 500 Crore company by 2026 - This would indicate a 5X growth over the next 3 years, built on sound branding, technology and operational fundamentals.
- Expansion of Special Cab Services across 50 cities in India - We anticipate that these services will significantly boost our business, expecting a 5% revenue contribution in the first year and projecting a growth of 20% of our overall revenue within the next three years.
- Building a road trip community - Our goal is to create a community of 10 million road travel enthusiasts, focusing on aggressive growth in Tier-2 and Tier-3 cities.
- Increasing driver presence - We aim to expand our driver presence by 160% in Tier-1 cities and by 220% in Tier-2 and Tier-3 cities, in response to the surge in leisure travel demand.
- Creating Experiential Road Trips: We are focused on combining technology and human interaction to offer experiential road trips that fill the gap in domestic leisure travel, providing a comprehensive travel experience.
By continuously refining and expanding its offerings, Savaari reinforces its position as a leader in customer-centric travel solutions, paving the way for a more inclusive and convenient travel experience for all. This ongoing dedication to excellence and customer satisfaction is what sets Savaari apart, ensuring its place at the forefront of the car rental industry.
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