The urban mobility landscape in India faces significant challenges, particularly in densely populated cities. Traffic congestion and pollution are two major issues that have a profound impact on the quality of life and the environment.
According to a report by the Boston Consulting Group, Indian cities are among the most congested in the world, with commuters in cities like Mumbai and Delhi spending an average of 1.5 hours more in traffic each day compared to other Asian cities.
This not only leads to lost productivity but also contributes to stress and health issues among the population. Moreover, the environmental impact of traditional fossil fuel-based vehicles is a growing concern.
The World Health Organization reports that 14 out of the 20 most polluted cities in the world are in India, with vehicle emissions being a significant contributor to this pollution.
The reliance on petrol and diesel vehicles exacerbates air quality issues, leading to increased respiratory diseases and other health problems. The need for sustainable and eco-friendly transportation options is more pressing than ever.
Ankur Patel, along with Priyadarshini Pradhan, Santwana Sagnika, Anirban Mohanty, and Pawan Bagrecha, saw the chaos of traffic and realised that there is a heavy reliance on fossil fuels.
To address this issue, they founded Let’s DriEV in July 2020, an AI-driven micro-mobility solutions startup that allows users to choose eco-friendly transportation, including E-bikes and E-scooters, for varying durations, from a day to a month.
A look at Founders’ background
Ankur B. Patel is an experienced founder who began his career at Tata Consultancy Services a decade ago as a System Engineer. In April 2016, he joined Intellect Design Arena as a Consultant. A year later, he founded True Solar, a startup focused on renewable energy R&D and implementation.
Anirban Mohanty, who joined as the co-founder in March 2020, was the City Head of Lookup.to. He was also associated with RB, United Breweries Ltd. and Bumberry Reusable Diapers.
Let’s driEV’s operating model
Let’s driEV operates mainly through a business-to-consumer (B2C) approach, but it also caters to business-to-business (B2B) clients, including notable names like Tata Projects and Khimji Jewellers.
The startup is branching out into last-mile delivery, tapping into the rapidly growing e-commerce market in India. As of now, Let’s driEV has successfully attracted over 11,000 customers to its platform and has an additional 1,900 individuals eagerly waiting for its monthly subscription offering.
The startup stands out from its competitors, such as Bounce and Yulu, by offering a unique model where customers have complete control over the e-scooter for the entire lease duration without the need for pick-up and drop-off services.
In the B2B arena, Let’s driEV faces competition from Zypp. The e-scooters provided by Let’s driEV, which the company acquires on a lease basis, are designed to cover distances ranging from 50 to 75 kilometres per charge, depending on the specific model chosen.
These e-scooters are versatile, allowing users to charge them at widely available EV charging stations or conveniently at home, adding to the ease of use and accessibility for the customers.
How does it earn money?
Let’s driEV operates with diverse revenue streams, adapting to the varying needs of its customers. The startup’s income is primarily generated through different leasing options for its e-scooters.
For instance, their community model calculates charges based on how long and how far a ride is, while their city model offers flexible pricing for short-term, weekly, and monthly rentals.
Beyond individual customers, The startup partners with businesses, providing fleet rentals and services for last-mile deliveries. Additionally, the company boosts its earnings through advertising and strategic partnerships.
In the previous fiscal year, Let’s driEV achieved a revenue of Rs 1.5 crore and is on track to exceed this amount in the current fiscal year, having already earned Rs 1.3 crore.
Since its inception, the startup’s total revenue has reached approximately Rs 3.3 crore.
“At present, our operations are centred in Bhubaneswar, where we aim to increase our fleet to about 2,000 vehicles. Our next goal is to extend our services to three more cities in the upcoming fiscal year and introduce additional non-vehicular revenue streams,” said Ankur Patel, CEO of Let’s driEV.
Let’s driEV is actively seeking funding to fuel its growth in Bhubaneswar and to venture into new markets.
Shared mobility in India
Shared mobility in India, as of 2023, is representing a dynamic and evolving sector, primarily divided into two distinct markets: Shared Rides and Shared Vehicles, catering to different aspects of transportation needs.
The Shared Rides market is particularly prominent in urban areas, where it offers innovative and flexible mobility solutions. The market is characterized by its high flexibility and low-cost options, making it an attractive choice for short to medium-distance travel.
A significant feature of this market is its high level of digitalization. Services are often accessible through simple apps or web-integrated applications, enabling easy mobile booking. The digital approach significantly eases the customer journey, reducing both the time and complexity involved in using these services.
According to a report by Frost, The gross merchandise value (GMV) of Indian shared mobility is likely to reach $42.85 billion by 2027, expanding from $11.05 billion in 2021, representing a compound annual growth rate (CAGR) of 25.3%.
The growth comes on the back of increasing urbanization, the integration of electric vehicles, and rising disposable incomes.
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