Lockdown to Hit Mobility Startups with the Debt Repayments

Charles Barnes

I am Charles Barnes and I focus on breaking news stories and ensuring we (“Import Tourism”) offer timely reporting on some of the most recent stories released through market wires about “Financial” sector.

I have formerly spent over 3 years as a trader in U.S. Stock Market and is now semi-stepped down. I work on a full time basis for Import Tourism specializing in quicker moving active shares with a short term view on investment opportunities and trends.

Address: 3819 Sun Valley Road, George, WA 98824, USA
Phone: (+1) 509-785-0774
Email: charlesbarnes@importtourism.com
Charles Barnes

The Indian government again extended the lockdown across the nation until May3. Due to the extension of lockdown urban mobility startups such as VOGO, Drivezy, and Zoomcar have land-in to repay the debts which they have taken for the procurement of vehicles from the non-banking financial companies and private banks.

 

Shared mobility startups are usually financed to provide service on a short-term debt. Due to the COVID-19 pandemic people have changed their behavior and have become more health concerned. They will prefer either a safe commute or skip the travel plan for a specific period of time. This may affect the mobility service and hamper the revenue growth.

 

Shared mobility startups such as Zoomcar, VOGO, and Drivezy took the loan to finance the vehicle. However, in cab-service platforms such as Ola and Uber, drivers take the loans for the vehicles and pay EMI. The drivers have loans on their accounts, thus the company can cut back the asset to repay the unpaid loans.

 

An authorized person from Drivezy states that due to the COVID-19 pandemic lockdown extension across the nation the travel segment has completely fallen down and is showing zero growth. The spokesperson further added that the decrease in demand for short-term rental vehicles will last for sometime even after the lockdown is exited. This will react to the increasing demand on the weekly and monthly basis as people will find the safer mode to commute or skip the traveling plans for a specific time period.

 

From the sources, in March the mobility-based startup has been constantly experimenting revenue models such as franchise, subscription, and the launch.

 

Drivezy further concluded with the statement that over 40% of the assets are serviced through debts. The startups can pay their EMI payment to their financer within the next six months.

Charles Barnes

Charles Barnes

I am Charles Barnes and I focus on breaking news stories and ensuring we (“Import Tourism”) offer timely reporting on some of the most recent stories released through market wires about “Financial” sector. I have formerly spent over 3 years as a trader in U.S. Stock Market and is now semi-stepped down. I work on a full time basis for Import Tourism specializing in quicker moving active shares with a short term view on investment opportunities and trends. Address: 3819 Sun Valley Road, George, WA 98824, USA Phone: (+1) 509-785-0774 Email: charlesbarnes@importtourism.com