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Your own car might start earning for you

Myles to bring platform for renting out your private vehicle

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Myles

Ajay Modi  |  New Delhi 

Your own car might start earning for you

Does your car idle outside your office for hours on most days? You can soon rent out your personal car for self-drive and earn. Myles, a self-drive car rental company, is ready with a platform where individuals can offer theirs for as short as two hours.

Under existing rules, a private car is barred from being registered for a self-drive car rental or any commercial use. Myles, part of taxi service operator Carzonrent, is in discussion with the governments in Delhi, Mumbai and Bengaluru to get the requisite norms in place.

Myles currently has 1,200 cars, owned or aggregated from fleet owners in 21 cities. The rentals start from Rs 50 an hour for a small hatchback. "We are ready with a private car sharing platform. Over the next quarter, we hope to have all the approvals to start this service. We want to connect car owners with users. A private car is not used for more than one-fourth of the time by the owner. This facility will allow a better usage and yield returns to offset the burden of monthly instalment and maintenance," said Sakshi Vij, founder and chief executive officer of Myles.

Vij said a car is regarded as an asset but it is actually a liability for the owner and a rental option can change that. Myles is aiming to reach a fleet, of 5,000 cars by the end of this year through a mix of fleet owner and private vehicles. Myles does not want a car older than three years to be part of its fleet.

This sector in the US has a fleet of two million cars. The Indian market is at a nascent stage with a few thousand cars. A shared car has the potential to replace or reduce purchase of new vehicles that is aggravating the congestion, pollution and parking problems in many Indian cities. The Delhi government has brought in a phased formula where private cars with an odd number could run on odd dates and even number on even dates to tackle these problems. "We have people making conscious choices today and wanting to pay for a car depending on usage, without actually owning one," said Vij.

Myles has tied up with insurance companies to cover any damage arising out of a self-drive usage. Besides insurance, the company has team from cleaning agencies, driving agencies and breakdown agencies to facilitate the rental business.

But, it is still not simple to convince owners to rent their personal cars, due to the concerns involved. Myles platform will have a facility that allows the owner to monitor the location, speed, usage pattern and driving behaviour of the driver. There will also be a rating system for users that will help owners to make decisions before allowing another person use the car. "Data will ensure we find the right car user for an owner," said Vij.

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First Published: Mon, April 25 2016. 00:49 IST
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