"Most people who purchase a bicycle use it for a few months and then forget about it. Because of not being used regularly, the bicycle needs repairs in order to be used again. It also does not provide the same riding quality as before," explains Varun Singh, Co-Founder, RaC Rides. Solving these challenges through the renting model, the company focuses on a regular upkeep of all its bicycles and ensures that users can enjoy the same riding experience every time.
A young Varun had moved to Mumbai to pursue his Master's degree where he was living with his school mate and football buddy, Pulak Mehan who is also the co-founder and core management of RaC Rides now. One rainy day, the duo planned to get a taste of Mumbai monsoons by going for
Originating in Mumbai, RaC Rides has now expanded to Gurgaon, Lucknow and Indore and is working towards adding major metropolitan cities such as Pune, Bangalore, Chennai and Hyderabad in its ambit. While the company had been experiencing consistent growth, the Covid 19 scenario has helped the team push their numbers much higher. The company registered a 3x revenue growth, 6x growth in terms of renting hours and 500 percent increase in number of online users in 2020. The young firm has tied up with various fitness cafes that have been acting as warehouses for RaC Rides. "Since the footfalls at these cafes have dropped owing to the pandemic, we found that synergy with cafes; we don't pay them rentals but help them increase footfalls," adds Varun.
RaC Rides team works well together and has developed a high trust environment that allows each member to thrive professionally along with the company's growth
Recipe for Success
Leveraging a first mover advantage, RaC Rides | Rent A Cycle (www.rentacycle.co.in) secured a highly coveted domain name. The easy to search name has helped the company grow organically and has brought scores of customers without any marketing investments. In a bid to strengthen its relationship with customers, the company is working on a unique hybrid model. "A customer's relationship with a renting company is very short lived; especially if they go on to buy the product. We are working on creating a model where the customer can rent a cycle, use it for some time and if they like it, they can purchase it from us," explains Varun.
The cross functional RaC Rides team works well together and has developed a high trust environment that allows each member to thrive professionally along with the company's growth. The team is now working on ramping up its technical abilities and is designing a mobile application that will work on a subscription model. Working in tandem with one of the IITs, RaC Rides is working on automating various steps of the process such as QR and GPS enabled locking systems.