What makes Zypp Electric one of the Indian innovative app companies?
What is so unique about Indian startups ? They can grow, think creatively, and adopt innovative technologies. One such company is Zypp Electric, which was recently mentioned in the “101 India Based Apps Companies list.”
Zypp Electric aims to make all last mile deliveries electric, reduce cost and enable a zero-emission approach. In this article, let’s delve further into Zypp Electric and its innovative approach.
About Zypp Electric
Zypp Electric is a last-mile delivery service provider that functions around 50 hubs in Delhi-NCR. The company aims to grow its partnership by at least 10 times in the next year. It would be made possible by doubling its fleet and areas of service. Thus, the company aims to grow exponentially and reach the masses.
Zypp Electric holds an active fleet of over 5000 e-scooters and plans to deploy more than 1.5 lakh scooters by 2025. According to Akash Gupta, Co-founder & CEO of Zypp Electric, they are adding 1,000 EVs every month on average to the existing fleet. Zypp Electric also claims to be an EBITDA-positive company.
The company generated INR 25 crore in FY22 and has projected a revenue of INR 150 crore during the current fiscal year. It equals over 500% growth in just a year.
Zypp Electric aims to bring sustainability and economic benefits to the masses on a single plate. Thus, the company considers the delivery partners at the forefront of its policies. Zypp Electric follows an asset-light model like other logistic players. However, its model does not mandate an individual to invest in an electric vehicle to become a rider. The individuals and NBFCs add their EV investments and rent them to Zypp.
According to Akash Gupta, the co-founder of Zypp Electric, the company promises to drive profits for every investment. The profit period will last up to 36 months for the same. For instance, for an EV that costs INR 75,000, Zypp Electric assures to pay back INR 2,300 monthly. It will eventually lead to a profit of over Rs 82,800 for investors by the end of 36 months. Moreover, Zypp Electric allows its investors to sell EVs at INR 7,500 each.
The profit-oriented approach at Zypp Electric attracts NBFCs, banks, and private investors to invest in EVs.
A Boon for Riders
In the current scenario, over 4,000 riders are associated with Zypp Electric to sustain their livelihood. These individuals become a part of Zypp Electric’s Pilot Program and earn through it. In return, the company provides an electric scooter, charger, delivery gigs, and training to these associated riders.
An average rider generally covers more than 120 kilometers every day. His regular expenses include fuel costs, maintenance charges, and the cost of owning a vehicle. Thus, a major chunk of their earnings is directed towards these additional expenses. However, Zypp riders eliminate these expenses by joining the Pilot Program. They neither have to pay for fuel prices nor maintenance/ownership charges. They can ride Zypp scooters just like they own them.
Moreover, the Zypp logo in green has become a symbol of sustainability and growth for the riders. The company aims to make India achieve Zero Pollution by 2030. The EVs are a robust tool for this mission as it decreases vehicle emissions substantially. Zypp Electric believes in its marketing headline “Zypp Chalao, Paise Aur Pollution Bachao.”
Price Per Delivery Model
How does Zypp Electric facilitate its deliveries? The company follows a price-per-delivery model to facilitate investors and riders. The model enables to charge a particular amount for a specific delivery.
The riders can choose their preferred slots and time durations for facilitating deliveries. They can choose from working for one hour up to six or eight hours through the Zypp platform. Thus, the platform is fully optimized to function from day to night. Many e-commerce, food, and retail companies partner with Zypp Electric to get the deliveries done efficiently. Zypp Electric acts as a strong bridge between these companies and riders. Some known names include Delhivery, Amazon, PharmEasy, Zomato, Blinkit, Swiggy, etc.
Most of the earnings, i.e., 80% to 85% per delivery, are paid to the rider. The remaining earnings, i.e., 10% to 15%, are kept with Zypp Electric for its operations. The company aims to improvise EVs by adding proprietary IoT devices to the same. According to Zypp Electric, electric two-wheelers fulfill their objective of ensuring fast and efficient last mile deliveries.
Zypp Electric ensures maximum safety in its scooters by standardizing its quality checks. The company uses the LFP chemistry battery, which makes the batteries stronger, safer, and more efficient. It also works with the LFP fleet, which demands more space but is one of the safest.
Zypp Electric also performs timely battery checks and sets alerts for drivers for charging or changing the batteries.
It is instrumental that Zypp Electric has emerged as the leading EV service provider. The company’s innovation and positive approach have brought a noticeable change for riders, investors, and the public.