PHOTO
The UAE-founded car-share operator ekar has deployed an additional 200 vehicles to cater to commuters in Sharjah, expanding its fleet to 1,200.
The launch follows the rollout out of ekar's service in Saudi Arabia in November and the completion of the $17.5 million additional funding in June. It is seen to significantly help meet targets and further strengthen the app-based car rental brand in the region.
The company has plans to reach 200,000 bookings next year and grow its business on a larger scale by scaling up its presence in the Gulf, entering new markets and expanding its fleet to 10,000 vehicles over the next three years.
Started in 2016, ekar allows commuters to rent a car and pay per minute, hour or day through a mobile app. It serves customers in the UAE and Saudi Arabia and has plans to expand across the Gulf Cooperation Council (GCC) region, Turkey and Egypt.
The company said the new Sharjah service is in response to a growing demand for cost-effective transport in the emirate, which is home to 15,000 ekar active users.
“Sharjah-based ekar users have been asking us for years to launch our services in the emirate, but we wanted to ensure that we could offer a premium and differentiated product,” Vilhelm Hedberg, CEO of ekar Middle East, told Zawya.
Hedberg said that just a few hours after the additional cars were rolled out for Sharjah commuters on Monday, they had a “healthy number of bookings.”
“We expect to see a fast-growing number of bookings come through over the next few weeks as word spreads,” Hedberg said.
Ekar is also introducing a new service for 175 UAE dirhams ($47.6), which includes free fuel, free parking, free mileage, and free comprehensive insurance to pick up and drop off a car between Sharjah and Abu Dhabi.
Hedberg said they can meet the target of 200,000 bookings next year because there has been a growing demand for a cost-effective transport service.
Ekar's business model promises to offer a budget-friendly option for drivers who want to save money on commuting costs. Those who sign up for the service will get to drive a car to and from work and pay only for what they consume, which is at a fraction of the cost of a ride-hailing or taxi service.
A Dubai-based commuter that spends an average of 20 minutes on the road per day can opt to rent a Nissan Micra that costs 60 fils per minute through the car-sharing app. The estimated monthly bill for this type of customer will be 480 a month, according to Hedberg.
“[That’s] a no-brainer when compared to the alternatives,” he said.
The start-up secured a total of $17.5 million through a Series B funding round this summer that was led by Dubai-based capital firm Polymath Ventures, with participation from AlYemni Group and Audacia Capital.
(Writing by Cleofe Maceda; editing by Mily Chakrabarty)
