Gaurav Aggarwal Steering Savaari to Success in India’s Car Rental Landscape

In 2004, when Gaurav Aggarwal, a former Cisco employee, planned a visit to his hometown Roorkee, he encountered a surprising challenge. Booking a reliable online car rental service from Delhi airport to Roorkee seemed nearly impossible. This experience sowed the seeds of an idea that would later become Savaari, a car rental company catering to those seeking hassle-free long-distance commutes in India. Founded in 2006 with a meagre capital of Rs 55,000, Savaari has come a long way. From its humble beginnings, this Bengaluru-based car rental service has grown into a robust business with an impressive annual turnover of Rs 80 crore.

Here’s a glimpse into Gaurav Aggarwal’s journey as he transformed Savaari into a formidable player in the Indian car rental industry.

Savaari: A Car Rental Pioneer

Savaari is a chauffeur-driven car rental company that operates in over 1,800 Indian cities. It offers a wide range of services, including intercity cabs, one-way drops, airport transfers, and local hourly rentals. The company’s foundation was laid in Gaurav’s mind during his 2004 visit to India, but it took two years of research and planning before Savaari became a reality in 2006. Gaurav initiated the venture while moonlighting, with full-time responsibilities handled by co-founders Mohit Khanna, Rahul Khanna, and Manik Shah. An interesting facet of Savaari’s business model is that it doesn’t own any vehicles; instead, it leases or rents cars from various vendors.

Growth Amid Challenges:

Savaari faced challenges during its initial phase, typical of pioneering businesses. Gaurav was aware that it would take time for Indian consumers to embrace this novel concept fully. However, the company turned profitable in its second year of operations, signifying its rapid growth and acceptance. In 2011, Gaurav moved back to India from the United States to work full-time on Savaari. Within ten months, Savaari secured its Series A funding from Inventus Capital Partners in March 2012, followed by a Series B round led by Intel Capital and Inventus Capital Partners in September 2013.

Savaari’s Unique Selling Proposition:

Savaari differentiates itself from competitors like Ola and Uber by primarily focusing on intercity or interstate commutes, while the latter two primarily target intra-city travel. The Indian car rental industry, valued at approximately $15 billion, is dominated by the unorganized sector, accounting for 90% of the market. In contrast, Savaari operates in the organized rental car sector. Savaari’s success story is rooted in its astute use of technology and operational capabilities. The company’s tech-based platform aggregates high-quality cabs and drivers, offering customers affordability and convenience. It serves customers through various channels, including its website, app, call centre, partnerships with travel companies, and corporate clients.

Challenges and Opportunities Ahead:

One significant challenge for intercity car rental businesses like Savaari is the seasonality of travel, with varying demand on weekends versus weekdays and during peak versus lean months. Overcoming this seasonality is crucial for steady growth. Additionally, navigating the complex landscape of inter-state mobility, including high inter-state taxes for cabs and non-transparent check-post interactions, presents hurdles for the industry. However, Savaari is committed to addressing these challenges through transparency and technological solutions. The company’s future plans include targeting the vast $12 billion unorganized car rental sector in India and encouraging more Indians to embrace road travel, believing it to be the best way to explore the country.

Gaurav Aggarwal’s journey with Savaari exemplifies entrepreneurship driven by a desire to solve real problems. His vision and dedication have turned Savaari into a significant player in India’s car rental industry, and the company is poised for further growth in the years to come.