Amid concerns about Covid-19, people are avoiding public transport and instead opting for self-drive and rental cars. This shift in behavior has led to a significant increase in subscriptions and enquiries for car rental companies. Eco-Rent-a-Car and Revv have experienced a sudden surge in demand, while Zoom has quadrupled its number of rentals. Drivezy is also launching new services to capitalize on this trend. The rise in demand can be attributed to factors such as remote work arrangements, fear of virus transmission on public transport, and school closures.

Eco-Rent-a-Car, a B2B car rental company, has seen a rise in individual cab bookings, despite a decline in tourist bookings. Aditya Loomba, Joint Managing Director of the company, noted that many corporate clients are now providing individual cabs for their employees instead of relying on public transport. As a result, the demand for private cabs has increased significantly. He mentioned that some corporates are requesting as many as 25 to 35 cabs per day. Currently, Eco-Rent-a-Car is fulfilling approximately 350 individual cab bookings per day, whereas travel and tourism bookings have almost vanished. The company has maintained its rates and even offers discounts in some cases.

Revv, another car rental company, has witnessed a 30% to 40% rise in subscriptions, according to co-founder Anupam Agarwal. In contrast, Drivezy has decided to reduce the monthly bike subscription prices to attract customers who may hesitate to use public transport. Ashwarya Singh, CEO and co-founder of Drivezy India, stated that the monthly car subscription service will be introduced in all their operational cities. The cars will be thoroughly sanitized and undergo maintenance checks before being rented out.

This increased demand has also led to higher prices in the car rental industry. Zoom Car, a self-drive rental company, has nearly quadrupled its tariffs in select cities. For instance, a self-drive KUV in Madurai, which costed Rs 1,249 for a 150 km drive earlier this month, now costs Rs 4,375 for the upcoming weekend. The company follows a dynamic pricing model, similar to airlines, where prices increase with higher demand.