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ARC Electric sets ambitious target: 5,000 EVs for Hyderabad and Bangalore in 18-24 months

Our expansion endeavours driven by the growing recognition of the benefits of eco-conscious transportation and the rising demand for such services in these key markets, says ARC Electric Co-founder Abhinav Kalia

Abhinav Kalia, Co-founder and CEO, ARC Electric

Abhinav Kalia, Co-founder and CEO, ARC Electric

Specializing in providing premium electric vehicle (EV) cab services tailored for corporate usage, ARC Electric has been on a mission to transform the way businesses approach transportation. In an exclusive interview with Bizz Buzz, Abhinav Kalia, the Co-founder and CEO of ARC Electric, provides insights into ARC Electric's revenue model, its commitment to operational excellence, the vision for a cleaner and greener future, and their steadfast commitment to customer service and strategic expansion

What is your revenue model?

ARC Electric generates revenue through its core business of offering premium electric vehicle (EV) cab services to corporate clients. We operate only in B2B domain. Our pricing is competitive, and we charge companies for the utilisation of our state-of-the-art EV fleet. Additionally, a significant portion of our income comes from establishing partnerships with corporate clients, where we provide ongoing EV transportation solutions on a retainer basis. These partnerships often encompass a range of services, from daily employee commutes to executive travel arrangements. Our revenue model is not solely transactional but fosters long-term relationships, aligning our success with our client’s sustainable transportation needs.

How much does the owner of the vehicle get and how much does your company get?

ARC Electric operates on a transparent cost-plus model, ensuring a fair and equitable partnership. The vehicle owner receives 100 per cent of their earnings, reflecting our commitment to providing a lucrative opportunity for them. Simultaneously, our company also earns 100 per cent of the agreed-upon fees for our services, creating a mutually beneficial arrangement where both parties share in the success of our electric vehicle transportation solution.

How would you define operational excellence in your field and are you Pan India?

At ARC Electric, operational excellence is defined by our unwavering commitment to delivering seamless, reliable, and highly efficient electric vehicle transportation services tailored for corporate clients. Central to this commitment is the meticulous management of a substantial EV fleet, ensuring maximum vehicle uptime, and prioritizing the safety of our passengers and drivers through rigorous maintenance and training programmes. While our services currently extend beyond major Indian cities, including Delhi NCR, Hyderabad, Bangalore, and Mumbai, our vision encompasses a broader footprint, reaching all cities connected to airports. This ambition is integral to our robust growth strategy, and we are actively engaged in expanding our services to achieve a Pan India presence in the near future. Our EV cabs not only offer a secure and dependable mode of transportation for corporate employees but also play a pivotal role in fostering a cleaner, greener environment, harmonizing with our commitment to sustainability and eco-conscious transportation solutions.

What brands of cars are you looking to have in your fleet?

In shaping our fleet, ARC Electric adopts a brand-agnostic approach, focusing on the practicality and preferences of our corporate clients. We offer a diverse range of electric vehicles (EVs) encompassing sedans and SUVs to cater to various transportation needs. Our commitment lies in aligning our fleet composition precisely with the unique requirements of our clients, ensuring they have access to dependable, eco-friendly transportation options. We prioritize sedans and SUVs, omitting hatchbacks and luxury categories, to provide comfortable and efficient EV solutions that meet the specific demands of corporate clientele.

What are the cost savings vis-a-vis petrol/diesel/CNG?

ARC Electric positions itself as a provider of electric vehicles (EVs) offering an eco-friendly alternative to traditional fossil-fuelled transportation methods. In the realm of transportation, the cost-effectiveness of EVs becomes evident when comparing electricity costs to those of petrol, diesel, or compressed natural gas (CNG), with electric vehicles consistently displaying significantly lower operational expenses. Beyond financial savings, the advantages extend to fostering a cleaner, quieter environment and reducing dependence on imported fossil fuels, which translates to savings in valuable foreign currency reserves while aligning with global carbon emissions reduction objectives. Additionally, EVs enhance ride comfort and safety, outperforming conventional fuel-powered vehicles. This transition not only aids clients in shrinking their carbon footprints but also elevates their brand identity, as ARC Electric promotes a holistic approach to sustainability, enhanced transportation, and environmental responsibility.

Do you plan at some point in time to experiment with hydrogen cars?

Indeed, ARC Electric is committed to staying at the forefront of eco-friendly transportation solutions. While our current focus is on electric vehicles (EVs) due to their established efficiency and availability, we maintain an open and forward-thinking approach. As advancements in alternative energy vehicles, such as hydrogen and solar, continue to evolve, and as their cost-effectiveness becomes viable, we are enthusiastic about incorporating them into our fleet. We believe in providing our clients with a wide range of sustainable options, and we are poised to adapt and innovate as new, environmentally responsible technologies emerge. Our goal is to remain a leading provider of clean transportation, continually exploring and adopting the most promising and eco-conscious technologies available.

When do you reckon that all cars will be EVs on the road?

Forecasting the exact timeframe for the full-scale adoption of electric vehicles (EVs) across all roads is a complex task, and its prediction is neither possible nor necessary. The crucial goal is to promote the widespread use of environmentally friendly vehicles rather than solely concentrating on electrification. This broader perspective allows for flexibility, as these vehicles could run on various alternative eco-friendly fuels, including hydrogen, biofuels, or even new technological innovations. Thus, it’s plausible that, prior to witnessing the complete transition to electric vehicles, we will observe the emergence of even more sustainable and eco-conscious transportation solutions in the market. The ultimate objective is to reduce emissions and environmental impact, regardless of the specific propulsion technology, fostering a cleaner and greener future.

How has the company fared financially since it was set up?

ARC Electric’s financial journey has been marked by the typical trajectory of many startups. Initially, we injected some essential capital to get the company off the ground, covering initial expenses and infrastructure setup. However, it’s a source of pride that in less than a year, our operational revenues have reached a level of sustainability, allowing us to cover our ongoing costs. At this point, external funding, if required, would be solely directed toward our expansion efforts and the acquisition of new assets to enhance our service offerings.

One positive trend is the consistent month-on-month growth in our revenues. We are steadily expanding our client base, establishing a growing presence in our target markets. These indicators, coupled with a positive shift in market sentiment towards sustainable and eco-conscious transportation solutions, are reinforcing our financial viability. We are not just growing but also achieving profitability on a per-ride basis, positioning ARC Electric on a solid financial foundation for future expansion and success.

What are your expansion plans?

ARC Electric is unwavering in its commitment to strategic expansion. In the near term, our primary focus is on strengthening our presence in the National Capital Region (NCR) by introducing an impressive fleet of over 2,500 new electric vehicles (EVs) within the next year. This aggressive expansion is a testament to our dedication to providing efficient and sustainable transportation solutions to our corporate clients in the bustling NCR area.

Simultaneously, we are actively planning to extend our footprint to additional major cities with high demand for eco-friendly corporate transportation. Our sights are set on the vibrant urban hubs of Hyderabad and Bangalore, with the goal of introducing more than 5,000 EVs to these regions within the next 18-24 months. These expansion endeavours are driven by the growing recognition of the benefits of eco-conscious transportation and the rising demand for such services in these key markets. ARC Electric is poised to continue making a positive impact by offering reliable and sustainable mobility solutions to an ever-expanding clientele.

What after-sales service will you offer your customers?

ARC Electric’s business model primarily revolves around catering to the corporate sector as a B2B service provider. Our approach entails establishing long-term agreements with our clients for the consistent supply of electric vehicle (EV) cabs. This strategy is designed to guarantee seamless, round-the-clock service, effectively rendering the conventional concept of after-sales service irrelevant within our operational framework. By forging enduring partnerships with our corporate clients, we prioritize proactive maintenance, rigorous safety standards, and efficient issue resolution, ensuring that the EVs we supply maintain peak performance and reliability throughout the term of our agreements. Our dedication to continuous service and support is at the core of our client-focused approach, reinforcing our commitment to providing dependable and sustainable corporate transportation solutions.

What is the vision of ARC Electric and where do you see yourself five years from now?

ARC Electric strives to provide safe, reliable, and convenient transportation to all, while actively reducing environmental carbon footprints through sustainable practices and innovation. We are customer-centric, ensuring a safe, seamless, and enjoyable experience for passengers and a fair and rewarding opportunity for drivers. In five years, ARC Electric will be India’s leading B2B service provider, available in all major cities, offering efficient, eco-friendly sustainable transport service.

Vincent Fernandes
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