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Eshwar C, 47, who has been driving three-wheeled passenger cars for 29 years, decided to buy an electric rickshaw last year. He borrowed for a four-stroke car and had experience with the company, the second vehicle.
In the 12 months after Ashwar bought the e-rickshaw for 300,000 INR ($ 4,000), his daily savings increased by INR 200-300 or up to $ 4. “With the increase in fuel prices, one-third of my income went to petrol. In addition, my former quad-stroke rickshaw needed a lot of repairs. Now, since the e-rickshaw costs me only once a day, I can save all that money, which is a very small expense, ”said the driver. CASIA. It charges the vehicle for four hours once a day To get enough power to travel 130 km.
The Bengalru-based Fintech Tech has funded 3 Wheels United to purchase 3,500 commercial and passenger electric rickshaws for commercial drivers. “We are a Fintech company that financially supports drivers to buy electric vehicles,” said Cedric Tangong, co-founder and CEO of the French-born Frenchman. CASIA.
Filling a dying ride
A.D. When Tangong came to India as a management consultant for a French company in 2014, he looked for opportunities to start a business that would help low-income individuals in the country. Three years later, he met Ramsh Prabhun, the founder of Three Wills United, who was about to close for good. “The company has helped drivers get loans from banks to buy less polluting vehicles. In 2016, it helped thousands of them. Said Tandong.
Tandong has partnered with Kevin Vervenbos, who has been working with investors to close the company to develop a new plan for Three Wills United. Considering the Indian government’s efforts to purchase electric vehicles and the company’s relationship with rickshaw owners, they decided it would be good to persuade them to switch to plug-in options.
“We did the math and came to the conclusion that buying an EV is expensive, but eventually the cost of ownership is lower than a petrol-powered vehicle. More importantly, the cost of running the day-to-day operations is also low. ”
A.D. In 2018, Vernonbos and Tandong took over the business from the previous owner to provide financing for electric vehicles. The problem is that the EV adoption rate is still small compared to domestic combustion vehicles, making it difficult for the company to persuade banks to repay the loan.
“The economics of third-party lending did not make sense. So we set up a non-bank financial company to lend. Next, we have built a technology platform to process and manage loans digitally, ”Tandong said.
Users who borrow money from Three Wills United must pay 23% interest and a four-year repayment period. The company has so far lent more than $ 6 million. “We provide 100% of the loan without asking for a loan.”
More than financing
The government has introduced eco-friendly transportation options – India has announced incentives for eV producers and buyers – Tandog said, adding that EVA has gained rapid acceptance over the past three years. There are more than 1.5 million e-rickshaws in India, accounting for 83 percent of the country’s total electric vehicle market. India will have more than 4 million electric rickshaws by 2030, according to Statistics.
However, because of the high pre-payment, Tandong said rickshaw drivers are still skeptical.
Three Wheels United to provide better pricing and extended warranty with car manufacturers such as Piaggio and Mahindra, as well as passenger EV. About 75 percent of the vehicles that the company offers to buy are for passengers. “We will do most of the loading in the coming months,” Tandong said.
Last year, the company released a rental model for drivers who were considering whether to transport passengers or carry a cargo. However, Tandong’s three-wheeler, which is only rented by trucks, ensures that they earn a higher monthly income compared to passenger vehicles. He did not say how much the difference was, but only 20 percent of the customers rent, and the rest are the owners of their vehicles.
“This allows the driver to understand how it works before they decide to buy it. They are not sure about buying it, so they are giving us a chance to see what it can do for their rent,” he said.
Tandong said his dream of starting a business to help low-income individuals had not been directly affected by the increase in EVs. He said it is not enough to help drivers really increase their income and get them financially. According to Tandong, borrowers need to be able to get enough business, so that they can not only make a lot of money but also pay interest without having to repay their loans.
To that end, the company has cooperated with the last mile startups to ensure that their drivers have a stable business as a courier if they choose to enter. Without elaborating, he said, the income of a Tandong EV rider varies from city to city. , But the company is trying to narrow the gap. Three Wheels United has helped more than 600 drivers work with partners.
“We are trying to do more than just offer loans. These partnerships not only help drivers choose EVs based on fuel, but also help drivers come to us when we offer low income insurance.”
This article is part of KrASIA’s “Startup Stories” series, where KrASIA writers talk to the founders of technology companies in South and Southeast Asia.
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