Zoomcar Report Shows 91% of Users Prefer Short-Term Rentals Over Long-Term Car Ownership

Zoomcar Holdings Inc., India's largest peer-to-peer car-sharing marketplace, released its India's Self-Drive Shift Report 2025 on December 2, showing that 91% of trips on its platform are short-term rentals, as young urban Indians increasingly choose car access over ownership due to rising costs and changing lifestyle priorities.

The report reveals that 2,62,585 users selected self-drive short-term rentals on Zoomcar between January and October 2025. Long-term subscriptions grew 44% year-on-year but account for only 5% of all bookings, while short-term rentals constitute 91% of completed trips.

Rising running costs, urban congestion, and lifestyle changes are driving consumers away from long-term EMIs toward flexible mobility solutions. Private cars remain idle nearly 90% of the time while owners face increasing expenses on fuel, servicing, and insurance.

Subscribers, primarily aged 25 to 40, use Zoomcar for hybrid work, relocations, extended stays, and long-duration travel, with average subscription periods of approximately 14 days. Tier 2 and Tier 3 cities contributed 30% of new users this year.

Hosts listing their cars on subscription typically earn INR 20,000 to 25,000 per month, with additional income from short-term rentals. High-utilization vehicles on Zoomcar serve more than 50 unique guests annually.

"The future of mobility is not about owning more cars. It is about unlocking more journeys," said Abhilash Kasliwal, Business Head, Zoomcar. "Young consumers in India want convenience, flexibility and financial freedom, and Zoomcar is enabling that shift at scale."

Zoomcar has invested in technology including AI-led demand prediction, smart cataloging, IoT-based tracking, and integrated trip protection. The company has expanded partnerships with insurance companies to enhance asset protection for hosts through contractual liability and safety covers.

The Bengaluru-headquartered company, founded in 2013, aims to support more than one lakh hosts and five million guests with flexible mobility solutions by FY30.