Reaching our destination on time is the first and foremost requirement that needs to be met by every person in today’s busy, fast-paced world. But given our population count and the number of vehicles on the road, traffic is simply inevitable. Thus, came an opportunity for us to solve, a gap to be filled and so was created the category of shared mobility space.
This Start-up Sunday we bring to you an idea that filled this gap and managed to sustain and grow exponentially within a short period of time.
Bounce is a subsidiary of Wicked Ride Adventure Services Private Limited founded in 2014 by Vivekananda Hallekere, Anil Giriraju and Varun Aghi. Formerly known as Metro Bikes, they renamed it to Bounce to avoid the confusion of being only present in metro cities.
Bounce is India’s first smart urban mobility solution, with a mission of making daily commute stress-free, time-saving, reliable and convenient. With their new One-Way Rental service, users can now pick up and drop the bike anywhere they need to and be done with the ride. This is predominantly aimed at providing a seamless first mile and last mile connectivity to metro users.
They aim at decongesting the roads by encouraging commuters to choose public transport by providing convenient options to rent bikes and reach their destinations from metro stations.
Bounce offers a scooter sharing service which allows users to pick up a scooter from anywhere, ride it to their destination and drop it off at any location offering a dock less sharing service. They have over 6,000 scooters in Bengaluru. Their main users are Metro commuters, college students, people who don’t want to own scooters and those who want to get from point A to B.
Bounce even allow users to keep vehicles at their homes overnight after the ride. The night plans from metro stations are one of its kind where they allow people to take a scooter home and bring it back in the morning. They charge Rs.3/km and do not charge anything for the parking time.
Bounce has immense potential in India, where limitations of space and cost have always made two-wheelers more popular, with a market opportunity of $4.5 billion. Being the first to offer an extremely cost-effective, personalised, motorised transport that fills a critical need gap in the Indian market, Bounce has the potential to be a category creator. So far, the company has seen over 200k downloads on its Android and iOS platforms.
Bounce partners with dealers for the two-wheelers, with 80% of its assets on lease and it charges on average Rs.6/km from a rider. In other words, Bounce owns fewer vehicles which means it has less investment held up. This is the new age revenue model where the organization doesn’t own the main asset of their offering and yet manages to earn revenue from it.
Bounce has around 105 employees on its payroll and has an estimated annual revenue of around 3 Million dollars. It has partnered with government companies such as Bengaluru Rail Corp. and Hyderabad Metro Rail Ltd along with the top food and grocery delivery companies.
Bike sharing startups that are currently operating in India include Vogo Automotive, ONN Bikes, WickedRide, Stoneheadbikes, and Rentabike, Tazzo Technologies and WheelStreet, among others. Two-wheeler rental startups like Green Wheel Ride and ValetEZ have also associated with the Bengaluru Metro Rail Corporation.
Ola in December 2018 invested $100 million in Bengaluru based scooter-sharing venture Vogo, which earlier the same year raised about $6 million.
Gurgaon-based Mobycy launched bicycles for short distance commutes in 2017 but is now focusing on electric scooters called Zypp. Mobycy now has an average count of almost 10 rides per day per scooter. Mobycy needs only four rides per day per scooter for profitability.
Indian bike-sharing startups raised around $138 million in funding in 2018, compared to just $2 million in 2016. The general feeling among investors is, it’s a model the country desperately needs to lessen urban transportation pressures.
The rise in popularity of electric vehicles (EVs) is being seen as an inflexion point for the segment, bounce is working with local and foreign players to increase electric vehicles in its fleet quickly. It’s a more cost-effective option, it’s simpler to operate, and provides a smoother ride.
Bounce has raised $12.2 million (Rs 84 crore) in its latest investment round. The Series-A investment was led by Sequoia India and Accel Partners, along with a consortium that includes Raghunandan G, founder of TaxiForSure. Post the deal, Shailesh Lakhani, managing director at Sequoia Capital India, and Anand Daniel, a partner at Accel, will join the start-up’s board.
The company plans to utilise the capital to develop its soon-to-be patented-keyless technology to operate vehicles without a key, focus on markets in Hyderabad and Bengaluru and expand to major metro cities by 2020. The company plans to introduce kick scooters across the city, especially in corporate and educational campuses, as it targets a market opportunity of $4.5 billion in the shared mobility space. The company plans to add 10,000 scooters in the next six months and go all the way to 30,000 over the next year. Their fleet occupancy is close to 90 per cent in the city and the founders are looking to double the capacity in the coming months.