“Repairs and Maintenance is a real pain point for car owners.”
When vehicle owners get their car serviced, they either have to pay very high price and face inconvenience at an authorised Service Centre or put up with unreliable and warranty less services with non-standard pricing.
At the same time, there are many good quality unauthorised workshops that do not have a cost-effective way to reach customers seeking good quality, fair-priced services.
Current Status
CarEasy Annual Financials
FY 18-19: GMV:$27,000 Revenue:$4000
FY19-20 GMV:$40,000 Revenue:$12138
FY20-21 GMV:$17533 Revenue:$14835
Market
Customers are segmented into 3 Segment 1 : Salaried Employees & Business professionals (It is a B2C (individual customer for service and insurance claims) focused segment for on demand service booking or schedule Maintenances) Segment 2 :RWA- Residential Welfare Associations (It is a D2C focused segment for Daily car wash service booking) Segment 3 : Fleet Owners (It is a B2B focused segment for OLA and Zoomcar Repair & schedule Maintenances).
Demographics: Salaried employee, lives in a gated complex, married, having family with small child & un-married.
Psychographics: Young new job holder & Family Men /Women, spend weekend time with family & parties, Health, safety and money are most important. Geographic: Metros-Tier1&2
Market:
There is a clear white space in the $10 Bn car services market with CAGR 11.36%.$7.5B Addressable Market for Service and Maintenances & $2.5B for Insurance Claims.
Problem or Opportunity
Problem: Customer is confused where to get his car repaired as the "Repairs and Maintenance is a real pain point for car owners In authorized Workshops Inflated pricing, Lack of transparency, High turnaround time. In Un-Authorized workshops Poor quality, Counterfeit spares, No warranty, No service history. Quality & Price, Lack of customer trust due to unorganized service sector industry.
Paying customers: We are trying our bit in solving and also we having paying customers .
Opportunity: There is a clear white space in the $10 Bn car services market with CAGR 11.36%.$7.5B Addressable Market for Service and Maintenances & $2.5B for Insurance Claims.
Solution (product or service)
1. D2CWaterless daily car wash in Residential apartments. Saving 36L ltr/yr water in 500 car capacity societies and maintaining car dust & germ free everyday. 2.B2B-An exclusive services partners for OLA & Zoomcar,Uber.-we serve as a SPOC and give priority & discounted service price by which the fleet companies can save money and turn around time. 3.. B2C- Trustworthy accountability for quality of network workshops, vehicle owners can choose workshop according to their time & convenience.
Competitors
MyTVS: Franchise model with strong supply chain but less control on quality of services & highCAC. Go-mechanic: Network of Workshops, can scale fast, but less control on quality of services & highCAC. Pitstop: Asset heavy service van, with end-end control on service but slow growth & highCAC. Local Workshops: Independent workshop owners with strong offline presences but poor online & Technology usage so less reach to customers hence high CAC.
Advantages or differentiators
CarEasy Defensibility / Key Differences / Entry Barriers: The daily car wash which is a D2C product to customer which is very strong in acquiring customer compared to competitors, also helps the company to gain the customer trust and 90% proven retention of customer. Also, the special AMC subscription sold to customers will help in having customers for long duration which is an entry barrier for competitors.
Cost Structure: Fixed cost • Payment and incentives to mechanics/washers • Salary to employees • IT Development cost • Advertising and Marketing cost
Variable cost • Acquisition of various Societies/Fleet Owners/Individual vehicle owners • Transportation • Returns and refunds
Business model
Business Model: Build strong Prepaid Customer base with our D2C Waterless daily carwash segment targeting 20k customer in one city with recurring ticket size of Rs.500/month with 60%margin. Then will introduce our new product in B2C called AMC Annual Maintenance Cost Subscription Package of two general car service Rs.10k Vs market price of Rs.15k and diverting these AMC customers to Network Garages, once service done, we deduct our commission of 20% on the bill and pay the workshop. Parallel our services and maintenance of B2B which are MOU done with Ola Zoomcar and Uber will be getting executed
Channels: • Mobile applications • Website • Onboarding Field team
Metrics: 1. Revenue of D2C daily Car wash: It is a subscription model of INR 500/Month with margin of 60% and 40% operating cost and material cost. Second Revenue of D2C: Subscription model Annual maintenance of the car of INR 10k/Year. 2. Revenue of B2B: Avg car service ticket size of INR 8000 with margin of 20% and the take of workshop cost 80% 3. Revenue of B2C: Avg car service ticket size of INR 6000 with margin of 20% and the take of workshop cost 80% 4. Revenue of Workshop software: Free of cost in INDIA and chargeable to outside Indian market. 5. Revenue Spare: Revenue from spare part distribution and lubricants to the workshops.
Money will be spent on
Operations-$80923.50 Tech-$67436.25 Marketing-$53949.00 Tell callers-$40461.75 Office Infra & Accounts-$20230.87
Risks in 3 verticals: D2C waterless daily carwash we started this in pandemic an we are in good business even in pandemic we have done about $17533.42 of business there is a lot of demand customer behavior for hygiene and cleanness is prioritized which is a good sign.
B2C:Maintiang spare parts inventory is one challenging and due to Pandemic the vehicles are not utilized so these kind of situations are beyond control otherwise. Quality control is very import which is a major risk if the process are not followed
B2B:Turn around time of the vehicles delivery and due payment bills fr om fleet owners which go beyond the credit lim it in some cases are the risk factors involved in this segment
