Zypp Electric aims to capture EV fleet market in next 5 years
Business Business: Last-mile delivery provider Zypp Electric plans to capture at least 20-25% of the total electric two-wheeler fleet market by deploying 500,000 electric vehicles (EVs) in the next three to five years, co-founder and CEO Aakash Gupta told Business Today in an interaction. “Zypp Electric has developed a business model focused on solving key challenges by providing the right vehicles, setting up proper charging infrastructure, hiring and training skilled drivers, and ensuring proper vehicle maintenance. This approach not only helps customers transition to EVs, but also tackles the supply challenges associated with it,” according to Gupta, adding that the company plans to deploy around 5 lakh electric vehicles in the next five years. The company currently has deployed 22,000 electric two-wheeler fleet, and plans to increase it to 50,000 electric two-wheelers by the end of FY25 and 1.25 lakh electric two-wheelers by the end of FY26.
Gupta found that
about 1.5 to 2 million last-mile delivery executives are currently opting for petrol two-wheelers. According to Gupta, Zypp Electric’s business model has made it very beneficial for delivery executives as it has shifted to a rental-based system, eliminating the need to buy vehicles outright. This model addresses the financial challenges faced by delivery executives, who often lack funds for down payments or to secure loans to buy bikes. As part of its expansion plans, Zypp Electric also aims to enter tier II cities in the country. It is currently present in Delhi, Bengaluru and Mumbai.
Gupta said,
“When we look at India versus global, the tide is moving towards India (in terms of EV demand). When India aspires to be net zero, and we have so much demand, we will first expand to at least five more markets, which we plan to do in the next 12 months.” “We are exploring different ways of expansion. Our focus was on going deeper into existing markets, but now we are in the process of formulating a strategy to enter new markets. And then we will see Zip expanding into smaller markets as well. But I think it will take us at least three to four months of our strategic roadmap to formulate a tier-2 strategy, but soon you will see Zip expanding into smaller markets as well,” Gupta said.
