Zypp Electric’s impressive growth, averaging 3 to 3.5 times annually, is powered by its EV-asa-service platform for various brands. In a conversation with EFY’s Nitisha, Co-Founder & CEO Akash Gupta emphasises the essential role of delivery partners, showcasing the company’s initiatives and support for them.
Q. How does Zypp Electric manage its extensive EV fleet?
A. Our fleet comprises 21,000 electric vehicles (EVs), and we handle deliveries for major companies such as Zomato, Blinkit, BigBasket, Zepto, Amazon, Flipkart, and Uber. We offer two essential services: the electrification of deliveries and predictive supply chain management. We manage approximately 5 million shipments monthly with our fleet of more than 20,000 EVs, supporting the livelihoods of over 20,000 driver partners. Our operations are enhanced by a proprietary fleet management and delivery platform developed over the past six years. Every motorcycle in our fleet is equipped as a smart connected vehicle, providing us with real-time data about the bike, driver, location, delivery count, battery status, and maintenance, all managed through our fleet management software.
Q. How does Zypp empower its delivery partners?
A. All our delivery partners are independent micro-entrepreneurs, constituting a workforce of 20,000 gig workers. They have complete control over their work schedule, workload, and earnings. Zypp presents them with opportunities; these entrepreneurs manage the rest. We provide them with vehicles for delivery purposes, eliminating the need to secure loans, pay EMIs, or make down payments. Zypp facilitates everything to empower them fully.
Q. How do you onboard delivery partners?
A. For driver onboarding, the process includes KYC verification, selecting preferred work locations, and integrating with the assigned vehicle and customer, enabling them to start deliveries. Our IoT software tracks our extensive fleet of 20,000 to 21,000 EVs continuously, monitoring each bike’s performance, battery status, and driver efficiency. This technology helps us identify whether a driver is facing any issues or might be better suited to different delivery opportunities, such as handling groceries in the morning and delivering food at night. This level of management and oversight is crucial to the functionality of our delivery and fleet management operations.
Q. What are the required working hours for delivery partners, and what are their payments to Zypp?
A. Delivery partners must work at least two to three hours, with the option to extend up to 12 to 13 hours. Our platform offers various tools and opportunities for them to utilise as they see fit. They are responsible for paying daily rental fees for bikes and platform access, which range from 100 to 200 rupees. We provide comprehensive services under a fixed daily rental pricing model, including insurance, loans, and maintenance. Success hinges on their ability to seize opportunities and earn money. Some delivery partners earn between 15,000 and 50,000 rupees, highlighting the importance of learning and earning efforts.
Q. Is there a fixed work-hour requirement?
A. Certainly, it is an entrepreneurship opportunity with flexible criteria. The platform rewards those who perform well. However, it also discourages underperformance. Ultimately, individuals are free to choose their working hours. There is no pressure to work a certain number of hours. They can work as little as three hours and still earn a significant income if they perform effectively. In essence, there is no set requirement for hours worked.
Q. In your opinion, what is the optimal charging solution for riders?
Swapping or fast charging benefits riders who ride more than 150 or 120 kilometres daily. If they ride less than 100 kilometres daily, regular charging suffices. Both methods are effective, and vehicle deployment depends on the specific use case.
Q. Could you elaborate on your announcement regarding 2000 women rider partners?
A. Our focus is twofold: addressing climate concerns by tackling pollution and climate change and making a social impact by empowering driver partners, women, and disabled individuals. Currently, we are actively pursuing both goals by leveraging technology to overcome various challenges. To engage more women partners, we are collaborating with NGOs and CSR companies and launching targeted marketing campaigns to raise awareness among women. Additionally, we are exploring partnerships with government agencies like NAPTS to facilitate onboarding women partners onto our platform.
Q. How does your company integrate OEM bike suppliers into operations?
A. When an OEM expresses interest in integrating their bikes into our network, we follow a rigorous onboarding process. Initially, every bike undergoes thorough testing by our dedicated team to ensure reliability and performance. We provide detailed feedback to the OEM on what aspects are satisfactory and what needs improvement. Based on this feedback, we recommend specific customisations to suit our operational needs better. Once these modifications are made, we negotiate and sign a contract covering warranty, spare parts, maintenance, and other essential terms. The contract ensures a long-term partnership with favourable pricing and warranty conditions. The customisation may involve IoT capabilities, battery specifications, and aesthetic adjustments like colour and branding with Zypp logos. This comprehensive process ensures that each bike is perfectly tailored to meet our requirements before officially joining our fleet. We establish a price through negotiation and then purchase the vehicles at the agreed rate through our fintech leasing partners.
Q. Which markets are you currently focusing on?
A. We operate across four key markets: Delhi-NCR, Bengaluru, Mumbai, and Hyderabad. Our primary attention will be directed towards these areas for the foreseeable future. Our activities span various sectors, encompassing food delivery, e-commerce, grocery delivery, hyperlocal services, pharmaceuticals, and bike taxi services for commuting.
Q. What is your plan for EV market share?
A. Of the 2 million delivery personnel using petrol bikes, only 20,000 have transitioned to EVs, representing just 1% of the market. However, our strategy aims to capture a more substantial share, targeting 25-30% of the market within the next 3-4 years.
Q. How are you working towards reaching this goal?
A. We consistently integrate 1500-2000 bikes monthly onto our platform while also extending into new regions, like our recent launch in Hyderabad. Our robust technology platform effectively addresses the needs of driver partners. Additionally, we have formed partnerships with major industry players and are strategically expanding with each of them.
Q. What growth did last fiscal year witness? Future expectations?
A. Over the past four years, we have consistently experienced growth, averaging 3 to 3.5 times yearly. Our revenue has increased from 250 million to 1 billion (25-100 crores), then to 1.12 billion (112 crore) last year, and 3.25 billion (325 crore) this financial year.
Q. What are future EV plans, revenue sources, and investments?
A. Over the next two years, we anticipate an increase from 20,000 to 200,000 EVs, followed by an expansion to 500,000 EVs over the subsequent four years. Our business has received investments totalling 2 billion and generated revenue of 5 billion, primarily from logistics and rental services.
Q. What strategies have driven your business success?
A. One key to our success over the past six years has been our consistent focus on three primary areas: technology, team building, and processes. This approach has allowed us to effectively identify and address what works and doesn’t in our business. Rather than hoping for solutions, we have actively solved common challenges in the EV sector, such as fleet deployment, financing, driver management, and customer confidence. This proactive problem-solving from day one has been instrumental in achieving our current scale.
