Ford Invests in Indian Car Rental Service

Ford Motor Co. is investing $24 million in Zoomcar India Private Ltd., a Bangalore-based company that rents cars by the hour, day, week or month.

The three-year-old startup, whose business model resembles that of U.S.-based Zipcar Inc., says it has now raised $46 million. Zoomcar plans to use the Ford funds to launch a unique program called ZAP (Zoomcar Associate Program).

ZAP will enable consumers to buy a car with Zoomcar’s help, then allow the company to rent the vehicle occasionally to others in exchange for a fee paid to the owner. The company intends to move 75% of its vehicle inventors to the ZAP business model by early 2017.

Zoomcar currently operates a fleet of more than 2,000 vehicles that serve more than 1 million users in seven Indian cities. The company says it aims to expand its inventory to 25,000 vehicles in 25 cities over the next few years. Ford is the company’s largest supplier of vehicles.

Zoomcar customers arrange for a vehicle online or with a mobile app, use the vehicle and return it to the original pickup point. Fees, which start at 50 rupees (US75 cents) per hour, include fuel and insurance.