Zoomcar Holdings and CARS24 launched a strategic agreement to use tech-enabled tracking and inspections to enhance vehicle quality and safety in the self-drive car rental industry.

As part of this partnership, CARS24 will install GPS tracking devices and perform Pre-Delivery Inspections (PDIs) on new host vehicles to guarantee openness, security, and a better visitor experience.

Delhi automobiles will be the initial target of the trial initiative, with intentions to expand based on results.

The experienced professionals at CARS24 will thoroughly inspect the safety, electrical, and mechanical systems.

A verified sticker on Zoomcar's platform will be applied to vehicles that pass these tests, indicating to renters that the vehicle is of good quality and opening up more revenue opportunities for hosts.

Furthermore, the GPS devices will monitor driver behavior and provide real-time car tracking, preventing unauthorized use and encouraging safer driving.

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After reporting a contribution loss of about $1 million the year before, Zoomcar Holdings reported a record contribution profit of $4.25 million for the fiscal year that ended on March 31, 2025.

The Bangalore-based company's contribution margin increased from a negative 10 percent to a positive 47 percent year over year, mostly due to increased customer retention and operational efficiency.

 

In fiscal 2025, Zoomcar's bookings increased by 10 percent to 426,788 from 387,821 the previous year. More importantly, when reward programs and product enhancements gained traction, the company's return user percentage increased from seven percent to 13 percent, reaching 86 percent.

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With six straight quarters of positive contribution profit, the company's business model changes appear to be taking hold in India's cutthroat mobility industry.

Zoomcar is staking its future expansion on automation and artificial intelligence. The business claims that by using AI-powered fraud detection and customer support tools, platform efficiency and user confidence have increased.

The findings come as businesses in India's shared mobility market continue to adjust, juggling demands for profitability with aspirations for expansion. Zoomcar sets itself apart from other ride-hailing services and traditional rental firms with its peer-to-peer approach that links car owners and renters.

Since its founding in 2013, Zoomcar has established itself as a dominant force in the Indian car-sharing sector, despite competition from both local and foreign firms entering the Indian market.