Zypp Electric ties up with Franchise India; targets pan India expansion
Zypp Electric, the last-mile mobility electric scooter services targets to facilitate their expansion vision into the metros and tier-1 Indian cities as it ties up with Franchise India. Franchise India will act as an advisor in Zypp’s expansion journey through this association. The cities where outsourced delivery vendors are limited and demand for home deliveries and e-commerce are high, the brand plans to penetrate into those cities. Catering to customers from various segments such as pharmacy, grocery, food & beverage, fashion, e-retail and offline to online, the channel partners through Zypp’s franchise.
Zypp is an economical, eco-friendly and efficient alternative for delivery-based businesses, works closely with 350 business-to-business (B2B) merchants who aid in last-mile deliveries for them. Zypp incepted in 2017 and has sourced about 1,000 electric scooters for its platform, to provide a seamless customer experience. Followed by e-commerce and hyperlocal (food, medicine etc), for Zypp, grocery deliveries are the biggest segment. They usually deliver more than 2 lakh shipments a month which amid the pandemic, increased to 7.5 lakh.
During the forecast period 2019–2025, the home delivery market in India was expected to grow at a CAGR of more than 23% which got pushed due to the pandemic. By 2022, the Indian e-commerce industry is expected to surpass $108 billion in revenue. In the coming months, these factors will therefore create more scope for mobility partners. The electric vehicle market is set to expand, with India moving towards e-vehicles and fuel pricing surging.
By tying up with unit franchisees, Zypp will be growing its customer base to ride on the expanding delivery market wave. Through the support of Zypp’s vehicles and brand trained staff, the unit franchisee is going to operate. For streamlined delivery services, Zypp’s channel partners would work on inbuilt software. With a pool of established corporate clientele and assurance of sustainable returns, the brand will also facilitate unit franchisees. To outsource the delivery function to Zypp, a unit franchisee would be responsible for bringing new retail brands and business on board. They will overlook the sales & business development teams to onboard local clients and also initiate local city marketing along with taking care of the vehicle inventory.
Three different sets of individuals are qualified to apply, for a unit franchisee partner. One should either be a property owner or a new investor or be open to conversion. The Conversion franchise would depend on whether the applicant is already associated as a delivery partner with an e-commerce aggregator such as amazon, swiggy, zomato and others. They need to be two wheeler deals in the non-e-vehicle segment. New investors should have the time to invest in day to day operations at a unit level and be young visionaries who would like to grow and evolve with a reputed global brand.
With a required carpet area of 600 sqft., the gross unit cost for a unit franchise would roughly be around 24 lakhs. At an ROI for 3 years, the franchise fee that one would have to incur is Rs. 2,50,000. Along with technical support, Zypp will give their franchisees unlimited access to the brand’s growing network of nationwide clients. For regional franchisee units, Zypp will also strategize and implement digital and social media campaigns.
Akash Gupta, Co-founder and CEO commented, “E-retail industry can’t grow without nationalized home delivery players. An e-retail brand can only deliver an exceptional consumer experience if its delivery partners are professional and technology-enabled. We have been bridging the gap between these two and making sure that it’s a sustainable choice. Our cutting edge technology and staying ahead of the electric logistics curve has helped us to sustain in this competitive market. We are extremely thrilled to be associated with the pioneers in franchising to help us in our next leg of expansion. Through this association, we are aiming to open 50 franchisees in 2 years across various tier-2, tier-3 towns too. “
Mr Gaurav Marya, Chairman, Franchise India Group said, “We are aligned with Zypp’s vision and mission to take it a notch higher. We are glad to be on Zypp’s expansion journey and to have had to work with Akash. E-vehicle mobility is an exciting segment and we are certain of taking it to other Indian cities in a phased and swift manner.”
Over the next 12-18 months, Zypp plans to expand its fleet to 10,000 e-scooters and onboard more riders, including women, to meet the surge in demand for its services.