Nowadays, the traditional measure of success which was owning an apartment or a car but now that is out of date. An increasing number of young people around the world don’t want to buy them now.
Research shows that the so-called millennial generation, who are now 30-35 years old, rarely buy houses and even more rarely — cars. In fact, they don’t buy super expensive things at all.
What are the reasons of this psychological change?
Some sociologists say it’s because modern youngsters suffer from financial crises. That’s why people are afraid of ’serious’ loans.
But it’s not the most important reason. The thing is, the current generation of young people differs from their parents’ generation. They have other values.
The youth today has reconsidered the concept of success, which means:
- Successful people don’t buy property — they rent.
- If you want to be considered successful, invest in experiences: travel, do extreme sports, build start-ups.
So, in this edition of start-up Sunday, we the entrepreneurship cell of IMI present you PumPumPum a start-up founded by Mr Tarun Lawadia which is working towards providing affordable car rental services to the people of Delhi NCR and also focussing on expanding to other cities as well.
Mr Tarun Lawadia started PumPumPum in 2018 with the aim of providing affordable car rental services to the people so that they can move around the places without the need of worrying about whether the public transport to that place would be available or not.
Q) What is PumPumPum all about?
A) Car subscription is the new way to have access to a car of your choice, where you don’t have to worry about a down payment, bank liability, registration of a vehicle, insurance, service, and maintenance. All these things are bundled up and presented to you as a wholesome package. It’s the new way of thinking where you use a car smartly and don’t have to stick with the same car for a long duration of time. You can always switch or upgrade to another car. At PumPumPum we ensure providing the best in class services to our customers.
Q) What was the eureka moment that encouraged you?
A) With the tremendous rise in the prices of automobiles, be it related to increasing cost, increasing insurance charges it was becoming extremely difficult for a common man to own a car. Also, due to the paucity of public transport at
the places, it became extremely difficult to commute from one place to another. Moreover, the luxury that one enjoys while having their vehicles makes them feel more independent and them to more productive. By leasing the vehicles, one would be free of the worries of maintaining a vehicle, paying the large EMI’s and at the same time enjoy all the benefits of having a personal vehicle.
Q) What is your revenue model?
A) You first have to pay a one-month advance subscription fee and a refundable security deposit which is also equivalent to your monthly subscription payment.
Your monthly fee will be billed at the start of every month. You can make the payment through a credit/debit card, net banking, auto-debit set up on your credit/debit card, or through an electronic clearing arrangement with your bank.
Q) Is PumPumPum a rental lease or a purchase?
A) PumPumPum provides an operational lease of certified old cars for a shorter period of time, where individuals pay only for the predefined period for which he is going to use the vehicle.
Q) Within which cities is PumPumPum subscription available?
A) The subscription of PumPumPum cars is available in Delhi NCR at present but we also plan to expand to other major metropolitan cities within the next few years as the demand the for-car subscription has been increasing and the positive response coming from people has now allowed to expand in Bangalore also. We would be catering to Bangalore from September 2019 onward.
Q) For how long can one subscribe to a car from PumPumPum?
A) You can subscribe to a car for 6, 12, 18 and 24 months depending on your needs. The longer you subscribe, the lesser is your monthly Subscription Fee.
Q) Is there a monthly limit on how many kilometers a person can drive?
A) Yes, there is a monthly limit of 1500 Kms for a full month subscription. You can still drive beyond the kilometer limit, but the additional kilo-meter clocked will attract an additional charge. The Kms will accumulate, on a pro-rata basis, for the period of your subscription (e.g. if you subscribe for 6 months, you will be entitled to 9,000 Kms, beyond which there will be an additional charge per km).