EV2 Ventures backed EVeez offers subscription based EVs

Lately, India has seen a stark rise in the use of Electric Vehicles. Initiatives can be seen from the public and private sectors to produce and spread the business of EVs. State-specific EV policies have been prepared to provide subsidies and tax rebates for early adopters.The recent discovery of a massive lithium reserve has further boosted the industry.

Multiple startups in the transportation sector have become popular for using EVs as the center of their business like BluSmart, Ather Energy, and Yulu. Contributing to lowering carbon emissions, these companies use EVs to help reduce the depletion rate of petrol and diesel.

Most of these companies are available on a pay and use basis. But duo Gaurav Rathore and Abhishek Dwivedi, say flexibility of the use of the vehicle was missing, which prompted them to come up with the idea of EVeez.

Three-year-old EVeez was set up in Gurugram and provides electric vehicles on a subscription basis to individuals, gig riders, fleet operators, and logistics companies. These can be used for anything from commute and delivery services to in-campus mobility. The main vision of the company is to make last-mile delivery affordable with zero emissions.

The company is tapping into the electric mobility as a service (EMaaS) sectors. The business model is aimed at giving flexibility to the hirer or rider of the vehicle with no lock-in period. 

Along with a subscription, the company offers end-to-end maintenance and breakdown support to the rider for the vehicle in use. Additionally free client-side service of the vehicle and consumables which suffer regular wear and tear in the use of the vehicle are also changed for free.

Currently there are 4 subscription models, with prices differing from Rs 3300 to Rs 5000 according to the type and use of the vehicle chosen. Explaining the emphasis of basing the company on a subscription model, Rathore said that the company aimed at solving the problem of access to vehicles and finance for the gig rider. Users have the option of signing up using the EVeez app or at the company’s hubs.

The company closed its seed round with $381K in 2022 with key investors like EV2 Ventures, Ah! Venture Fund and a few angel investors. EVeez has raised a total of $848K over 3 rounds.

It currently has 1500 individual and gig riders aboard and works with over 150 small businesses and about 15 logistics companies and fleet operators. It has over 2500 e-bikes spread across Delhi NCR, Hyderabad, Bangalore, and Kolkata.

The company claims it has seen a 5X growth in its number of e-bikes from 500 last financial year to 2500 this financial year. It plans to expand these numbers to 25,000 by the end of FY24.  

EVeez plans to onboard around 100,000 gig riders and expand its services to all metro and tier 1 cities. It aims at covering 50% of market share for eMaaS in the new EV two wheeler sales and deployment by FY26.

According to a report by Allied Market Research, the global market for e-bikes was valued at $40,312 million in 2019, this is forecast to reach $118,657 million by 2030 with a CAGR of 10.5%.  Mckinsey’s reports show that India is the largest seller of E3Ws, accounting for roughly half of all rickshaws in the country. The report predicts around 80% of 3Ws in India to be electric by 2026.