Mobility Outlook had a discussion with Akash Gupta, Co-Founder & CEO of Zypp Electric, where he elaborated on the company's latest offerings, tech-enabled ecosystem, and commitment to sustainable development.
Can you provide insights into Zypp Electric's latest offerings that set them apart from competitors in the last-mile delivery sector?
We are the largest full-stack EV-as-a-service brand that provides state-of-the-art technology and offerings to solve last-mile logistics in India. At the core, we are enabling businesses to shift from conventional fuel-based vehicles to electric vehicles. We focus on solving the EV supply and helping businesses to scale fast by empowering delivery and business partners. The benefit of our offering is two-fold. Using EVs is favourable for the environment as well as our business partners. Through our business model, we are fostering maximum earning potential for our delivery partners through innovative cross-utilisation strategies.
Our platform offers various insights to delivery partners about their earnings, making it easy for them to accept orders. We also offer a keyless on-off system and token-based order allocation to improve drivers' delivery experience. At the same time, we provide real-time tracking of fleets and orders for our business partners. As our drivers use EVs and have access to our user-friendly platform for order delivery, it also reduces the turnover rate among our delivery partners. It helps businesses gain complete control and visibility over their operations, which in turn, helps them scale better.
Could you delve into Zypp's implementation of a tech-enabled ecosystem in logistics and the integration of IoT to enhance last-mile delivery electrification?
Our platform oversees the largest AI/ML and IoT-equipped EV fleet in India. This technology enables us to make well-informed decisions, optimising vehicle availability and utilisation across different hubs and locations. Our SaaS product encompasses a client interface, fleet management tools, and an analytics dashboard seamlessly integrated with both pilot and fleet applications. This setup enables real-time monitoring of the fleet and aids in evaluating rides, enhancing driver safety and overall efficiency.
One of our notable features is a motor lock, which not only boosts security but also improves visibility into our deployed fleets. Our technology-driven services also encompass a battery management system, ensuring the longevity and reliability of our EVs by monitoring and optimising battery health. All our offerings are designed with the convenience of our end-users in mind. Our tech-enabled functionalities enable us to collect and analyse big data, enhance services, ensure timely repairs, and streamline inventory management.
In the logistics domain, the role of commercial vehicles is pivotal. How does Zypp plan to establish a significant presence in this particular segment?
Fuel prices, particularly for petrol, have been increasing over the years. It poses a major challenge for companies aiming to fulfil last-mile delivery demands while sustaining profitable unit economics. Also, high vehicle and fuel costs make it difficult for delivery drivers to maximise their earnings. Zypp Electric addresses these challenges by offering an alternative solution.
We've powered up delivery fleets with our all-encompassing solutions. Teaming up with top electric vehicle manufacturers (OEMs), we've sourced high-quality EVs. Our infrastructure boasts a widespread network of battery-swapping stations and on-road assistance for delivery partners. We've also incorporated user-friendly in-app features to simplify the delivery process and enable efficient resource sharing. This strategy not only helps drivers boost their earnings but also allows our clients to enjoy cost savings and more streamlined deliveries.
We focus on meeting the needs of both our clients and drivers. This is making a positive impact by improving last-mile logistics capabilities for a diverse range of businesses.
Would you be able to discuss Zypp's perspective on these issues and shed light on any notable initiatives undertaken to align with Sustainable Development Goals (SDGs)?
We founded Zypp Electric with the goal of decreasing carbon emissions, particularly in the last-mile delivery and mobility industries, by adopting electric technology. This aligns well with the Indian government's aim to achieve nationwide electrification by 2030, in line with the 13th Sustainable Development Goal (SDG) for a cleaner and sustainable future. All our vehicles are completely electric.
Our business model supports the 7th Sustainable Development Goal (SDG) by providing affordable and clean energy to everyone. We've introduced a rental system for electric scooters aimed at gig workers, encouraging the widespread adoption of EVs. This approach eliminates the need for significant upfront financing to purchase an EV, making the transition to electric last-mile logistics more feasible. Simultaneously, the easy accessibility of these two-wheelers creates job opportunities for individuals. This initiative aligns with the 1st SDG, promoting income generation and economic empowerment for gig workers. Through collaboration with governing bodies, we've optimised our operations, moving us closer to achieving our sustainability goals.
Please share information about Zypp's rental services and elaborate on the advantages gig workers can gain by utilising Zypp's services.
In addition to addressing the final stage of emissions, we're actively promoting the use of EVs in India by making them more budget-friendly. To achieve this, we provide convenient rental choices for our delivery partners, enabling gig workers to own two-wheelers at low expenses. This not only reduces their monthly spending on fuel and vehicle upkeep but also contributes to the affordability of electric vehicles.
When using EVs, charging is a crucial consideration. We recognise this concern and aim to simplify the process for drivers. Our extensive network of charging stations and swap facilities ensures a hassle-free experience for EV users. The first swaps for our EVs are free, and subsequent charges are reasonably priced. This approach allows gig workers, partnering with platforms such as Amazon, Zomato, Uber, Rapido, etc., to extend their delivery range and, consequently, increase their earnings. In summary, we are improving the accessibility of EVs for gig workers, positively impacting their income.
Are there any upcoming expansion plans or ongoing projects that Zypp Electric is presently engaged in?
We're currently operating in over six cities, and we're expanding our presence in Bengaluru by establishing additional main hubs. Additionally, we've started operations in Mumbai. Our main priority at the moment is to increase our EV fleet in Bengaluru to 10,000 units. Over the next three and a half years, our goal is to introduce 500,000 e-scooters, aiming to create a business valued at over INR 10,000 crore.
We have the largest fleet of 2-wheelers, and we're currently focused on expanding our 3-wheeler segment. This involves recruiting new personnel, deploying additional fleet units, and forming important business partnerships. Our goal is to enhance our overall business while also providing support to our delivery partners. We recognise the dedication they put into earning a living, and we are committed to offering them cost-effective and top-notch insurance plans. Their well-being is our utmost priority, and we are actively working towards making that commitment a reality.
Moreover, we recognise that we can't single-handedly revolutionise the entire electric vehicle (EV) landscape. Hence, in 2021, we introduced the EVolve Innovation Challenge. The goal was to identify, support, and financially assist early-stage startups that could benefit from our collaboration. This initiative aligns well with India's aim to transition to electric vehicles by 2030. Recently, we concluded the second season of the challenge, which turned out to be highly successful. We awarded cash prizes totalling INR 10 lakh and placed orders worth INR 5 crore with three outstanding EV-focused startups. We are now gearing up for the third season scheduled for the upcoming year.
Can you provide insights into the collaborations, partnerships, or tie-ups that Zypp Electric has forged with brands to extend its electric mobility services?
We’ve partnered with key players in the electric mobility sector to enhance its services and expand its fleet. In September, the company collaborated with Lectrix EV, securing a significant addition of 100,000 two-wheeler electric vehicles (EVs) to its fleet. This collaboration is noteworthy as Lectrix EV manufactures its vehicles and auto parts in India, aligning with Zypp Electric's commitment to promoting indigenous production.
Another notable partnership is with Gogoro Inc., established the previous year, aimed at accelerating the transition of logistics fleets and last-mile deliveries to electric vehicles through battery swapping technology. Also, we partnered with Zomato, with plans to deploy 100,000 e-scooters by 2024. Zomato will be utilising these EVs for over 10 million deliveries, contributing to sustainable and eco-friendly last-mile delivery solutions.
In terms of expansion, we’ve identified upcoming cities in its pipeline, including Hyderabad, Pune, Chennai, Jaipur, and Ahmedabad. The company plans to expand to one new city each quarter. From a fleet perspective, Zypp Electric intends to grow from its current fleet size of 17,000 to approximately 100,000 within the next 12 to 18 months. Furthermore, the long-term goal is to scale the fleet to 200,000 over the next 24 to 36 months, reflecting the company's ambitious plans for rapid and substantial growth in the electric mobility sector.
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