How I Built A 25 Crore Luxury Taxi Startup Called Shoffr | GrowthX Inner Circle

Summary

In this insightful episode, Vikas Bardia, the co-founder of Schofer, shares his journey from Kolkata to London and finally to Bangalore, where he established a luxury electric vehicle (EV) cab service in just two years. The company focuses on sustainability while ensuring a premium customer experience. Vikas discusses the significant market opportunities in India's taxi industry, particularly in Bangalore, and how Schofer is leveraging the EV revolution to create a gold standard in ride-hailing services. He emphasizes the importance of a sustainable business model and the power of word-of-mouth marketing in attracting repeat and new customers.

Takeaways

• 🚗 The Bangalore airport taxi market is a well-established and significant opportunity, with pre-T2 opening traffic of over 1,500 cabs and 30,000 daily trips.
• 🌟 Vikas Bardia built a luxury cab service company worth 25 million in just two years, emphasizing the rapid growth potential in the sector.
• 🔋 Schofer is a Bangalore-based electric vehicle (EV) charging service that focuses on sustainability while maintaining a premium customer experience.
• 💡 The inspiration for Schofer came from the founders' personal experience with electric vehicles and the realization of the cost benefits of EVs for high-mileage drivers.
• 📈 The taxi market in India is estimated to be between $7 to 10 billion, with significant potential in airport transfers, corporate travel, outstation, and intra-city services.
• 🚕 Schofer aims to set the 'gold standard' for ride-hailing services by providing a high-quality experience that is both seamless and hassle-free.
• 🛠 The business model for Schofer involves careful financial planning to ensure sustainability, with a focus on recovering the initial investment and generating profit over the car's lifetime.
• 💰 Schofer's revenue model is based on a simple payback calculation, considering the running costs and the time it takes to recover the initial investment in the vehicle.
• 📊 Word-of-mouth marketing has been highly effective for Schofer, with 75% of their revenue coming from repeat customers, highlighting the importance of customer satisfaction.
• 🚀 The next 12 months for Schofer are focused on team building and expansion, which the founder is most excited about and considers crucial for the business's future growth.
• 🎯 The GrowthX Demo Day event is mentioned as an opportunity for startups to learn about revenue models, customer acquisition, and retention strategies, indicating the importance of these aspects in business growth.

Q & A

What is the current size of the Bangalore airport market in terms of the number of trips per day?

Before the opening of T2, the Bangalore airport market was estimated to have more than 1,500 cabs, with about 30,000 trips happening on a daily basis.

What is the business model of Vikas Bardia's luxury cab service company?

Vikas Bardia's luxury cab service company focuses on building a high-quality service experience while maintaining sustainability. It aims to be the gold standard in the ride-hailing service industry.

How did Vikas Bardia's experience with the Nexon Eevee influence his decision to move into the electric vehicle (EV) market?

Vikas Bardia was impressed by the silent operation of the Nexon Eevee and realized the potential cost savings of running electric vehicles due to their significantly lower running costs compared to traditional vehicles.

What is the estimated market size for the taxi market in India, and how much of it comes from the top seven cities?

The taxi market opportunity in India is estimated to be between $7 billion to $1 billion, with about 70% of this coming from the top seven cities in India.

What is the GrowthX Demo Day, and what can attendees expect to learn from it?

The GrowthX Demo Day is an event where top GrowthX teams present in-depth growth strategies. Attendees can expect to learn about designing revenue models, understanding customer acquisition, onboarding, and retention.

What is the core insight that led to the creation of Shofer, according to Vikas Bardia?

The core insight was the realization that many companies building with electric vehicles were using the same model and cars, and that a sustainable business model was needed to scale the service in a financially sustainable manner.

How does Shofer differentiate itself from other ride-hailing services in terms of customer experience?

Shofer aims to provide a premium ride-hailing service with a focus on a hassle-free ride, including a simplistic booking experience, responsive drivers, well-maintained cars, and personalized in-car amenities like water and tissues.

What percentage of Shofer's revenue comes from repeat users, and what does this indicate about their business model?

Shofer gets about 75% of its revenue from repeat users, indicating that their focus on providing a high-quality experience has led to customer loyalty and organic growth.

What is the financial model that Shofer uses to estimate the return on investment for their cars?

Shofer estimates that if they buy a car at a cost of 100, they should be able to make anywhere between 300 to 400 over a five-year life, considering known costs like EMIs and driver salaries, and unknowns like maintenance.

What is the main challenge and area of excitement for Shofer in the next 12 months?

The main challenge and area of excitement for Shofer is building out a team, which is crucial for the company's growth and development in the next 6 to 12 months.

How does Shofer approach the issue of scaling their business while maintaining a sustainable financial model?

Shofer focuses on building a sustainable business model that allows for scaling without compromising the quality of the service. They emphasize the importance of financial sustainability over just scaling the business.