Zypp Electric Business Model: How Zypp Powers Electric Mobility & Delivery in India

Zypp Electric by Mobycy is a Gurugram-based Dockless e-scooter rental and delivery app founded in 2017 by Akash Gupta and Rashi Agarwal. The platform lets people easily book their ride with their application in just a few seconds.

Known as India’s largest tech-enabled EV-as-a-service platform, Zypp uses IoT-powered electric scooters to reduce delivery costs and pollution. It partners with businesses, from local merchants to large e-commerce platforms, to provide carbon-free last-mile delivery solutions for   groceries, medicines, food, and packages efficiently.

Currently, their services are available in Delhi, Mumbai, Bangalore, Greater Noida, Gurugram, Faridabad, and Noida.

Overview of Zypp Electric (Mobycy)

Zypp startup is aiming to reach ₹600 crore in revenue by FY26 and is preparing for a possible IPO in FY27.

Zypp Electric Funding Rounds

Zypp Electric has raised a total of $76.5 million across 11 funding rounds.

Its biggest funding came in November 2022, when the company raised $20 million in a Series B round, led by Gogoro.

Source

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Services offered by Zypp

1. Zypp Electric 2-Wheeler Rentals

Zypp Electric specialises in delivering groceries, medicines, food, and e-commerce packages efficiently. The electric scooters are fully automated and powered by IoT and AI. They are low maintenance, run on dual high-performance batteries, and come with chargers.

These scooters provide a range of 100-120 km per charge and help save on petrol costs.

2. Zypp Electric Rent-To-Own

Zypp Rent-to-Own is a service by Zypp Electric that lets you own an electric scooter without paying the full cost upfront. You start by paying a one-time upfront fee, followed by weekly payments. The rent-to-own period usually lasts 12 to 16 months.

Once you complete the tenure, the scooter becomes fully yours, with all documents and registration transferred to your name.

3. Zypp 3-Wheeler Cargo

Zypp Electric also provides electric 3-wheeler cargo vehicles designed to carry larger loads. These vehicles are built to handle larger loads (500-700 Kg)  like grocery crates or large e-commerce orders, maintaining zero emissions.

Zypp 3-Wheeler Cargos are best for bulk deliveries, e-commerce logistics, and commercial cargo transport.

4. Zypp EV For Delivery 

Zypp also has a pilot program where Zypp rent its vehicles to delivery partners or delivery Pilots who transport goods and packages to customers using Zypp’s electric vehicles. Zypp also offers these delivery partners bonuses and incentives like accidental coverage, insurance, flexible payout and more.

How Zypp works

1. Just download the app from playstore/App Store.
2. Register with your phone number.
3. Then take your selfie or a photo of your college/company I-Card
4. Link any of your payment methods, Paytm, Mobikwik, GooglePay, Debit Card/Credit Card etc.
5. Select your nearbuy cycle/e-bike 
6. Reach your pickup point, scan the QR code and your ride starts
7. Enjoy your journey.

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Now, Zypp is getting almost 13 thousand traffic per month organically with more than 1600 backlinks to their 46+ pages. (As per Ahrefs.com)

Here is the organic traffic growth chart of Zypp since January 2020.

Top Performing Pages of Zypp in July 2023.

Business Model of Zypp

Zypp Electric’s business model serves both B2B and B2C customers. It initially started with a B2C model, offering electric scooters for rent/lease for a specific amount to help commuters travel from metro stations to their offices. 

During the COVID time, the company saw an an opportunity in the B2B space and began providing electric vehicles for last-mile delivery to delivery firms through its Zypp pilot program. This helped delivery firms reduce their costs and carbon footprints. 

They manage drivers and operate a fleet of e-bikes through partnerships with companies like Gogoro, Sun Mobility, Hero Electric, and Kinetic Green without owning the EVs themselves.

How does Zypp earn: Revenue Streams Of Zypp Electric

1. Vehicle Rental

Zypp earns a small amount by renting out its electric scooters or bicycles to customers.

2. Zypp Pilot Program

It also earns money through the Zypp Pilot Program, where it rents electric scooters to delivery partners, who use them to make deliveries for clients. Drivers are paid 40-50 rupees per delivery.

Zypp gets a fixed price per delivery from its partners. From that amount, Zypp passes a portion to the driver. However, the driver also pays a part of that portion back to Zypp as rent for the scooter.

3. Advertising & Brand Promotions

It also earns money through advertising on its electric vehicles, delivery bags, and rider gear. Their delivery persons promote brands by wearing custom t-shirts and helmets with ads.

4. Franchise Model

Apart from this Zypp Electric also earns through its franchise revenue model. Zypp offers franchise opportunities across PAN India, where partners invest based on location, fleet size, and scale of operations. The investment covers electric vehicles, access to Zypp’s technology platform, brand licensing, operational support, maintenance setup, and marketing assistance. 

Zypp earns revenue from franchise fees and ongoing operational partnerships. On the other hand, franchise partners can achieve an estimated 51%–100% ROI within 3 years, depending on vehicle usage and operational efficiency.

Zypp Electric’s AI-Powered Platform: FleatEase.ai

FleetEase.ai is Zypp Electric’s fleet management platform designed to help logistics and mobility businesses run their vehicles more efficiently. It is offered as a subscription service for external fleet operators, priced between ₹149 and ₹499 per vehicle per month.

The platform brings all fleet activities into one dashboard, including live GPS tracking, driver and trip data, battery status, vendor details, and payments. It helps operators monitor vehicles in real time and manage day-to-day operations easily.

The platform has managed 30,000+ vehicles and supports around 500,000 daily deliveries, helping businesses reduce downtime by 30% and cut operating costs by 25%

More about Zypp Electric

1. Mobycy was recently awarded the “Best Mobility Start-up in India” by Niti Ayog.

2. Zypp Electrics is aiming to plant 1000 trees by 2030. Their mission is to achieve zero pollution in mobility by 2030, promoting eco-friendly transportation to combat climate change and reduce pollution.

3. Zypp has grown its fleet from around 6,000 vehicles in 2022 to over 20,000 electric two-wheelers today. Looking ahead, the company plans to deploy more than 1 lakh vehicles across 25 cities by 2030.

4. The startup reported ₹448 crore revenue in FY25, a 48% year-on-year growth compared to ₹302.6 crore in FY24.

5. Zypp Electric has completed 15 million deliveries using its EVs for partners like Bigbasket, Zepto, Flipkart, Myntra, Zomato, Swiggy, Blinkit, Dunzo and more in Delhi-NCR and Bengaluru.

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Main Competitors of Zypp

1)- Yulu

2)- Juno

3)- Crayon Motors

4)- MoEving

5)- Evify

FAQs – Zypp Electric