Tech-enabled third-party logistics service provider Zyngo on Tuesday said it will deploy over 18,000 electric vehicles for last-mile delivery in the country as part of its fleet augmentation plans.
These delivery vehicles, which are to be deployed pan-India by this fiscal-end, are being leased/sourced by the company from various domestic original equipment makers (OEMs), Zyngo EV Mobility said in a statement. Zyngo has been catering to several major e-grocery and e-commerce platforms with its fleet spread across Delhi-NCR, Bengaluru, Mumbai, Hyderabad, Jaipur and Chandigarh.
The company said it plans to venture into other markets such as Pune, Ahmedabad, Indore, Chennai, Lucknow and Bhopal, among others, this fiscal, while expanding its EV fleets into existing and new locations. The company said it has been partnering with these OEMs based on strong and robust Service Level Agreements (SLAs), wherein the entire maintenance and servicing of the vehicles is covered by the respective OEMs, it said.
“We are currently on track to increase our fleet size by up to 18,000 EVs by FY 23-end. As a part of this, we are targeting deployment of 10,000 EVs across various locations by November 2022, and then the rest by March 2023, in order to fulfil the growing market requirements and to increase our business propositions by 10 times or more, said Prateek Rao, Founder-CEO, Zyngo EV Mobility.
Of this, e-two-wheelers will account for around 60 per cent and the remaining 40 per cent will be e-three-wheelers, the company said. The company said it is currently doing around 3-lakh deliveries per month with the help of its all-electric fleet of over 850 electric two and three-wheelers. Noting that it clocked an Annual Recurring Revenue (ARR) of around Rs 9 crore last fiscal while growing around 6 times in terms of revenue in the last one year, it said the target is now to achieve an ARR of Rs 100 crore for the current fiscal.
Citing industry estimates, which suggest that the hyperlocal delivery market in India is going to grow by over 12 times by 2024, and the domestic e-commerce market to cross approximately 6 times in parallel by the same year, Zyngo said it aims to capture at least 35 per cent of the entire hyperlocal e-commerce logistics market by 2024.