Spreading skilled mechanic network across the country for roadside assistance

Bengaluru-based startup ReadyAssist is trying to solve the huge problem of getting roadside assistance for vehicles in India. This unoragnised segment is a huge business opportunity which the company is tapping into through its mechanic network spreading across the country. The company is also collaborating with large enterprises to provide roadside assistance to their vehicles as part of a subscription-based operating model. In an exclusive interview with Bizz Buzz, company's founder and CEO Vimal Singh said that despite the pandemic, the company is currently providing assistance to many vehicles performing emergency services. The startup is also planning to raise funds in the next three months to build a war chest as a cushion against the pandemic

How is the business environment when the country is facing a raging second wave of the pandemic?

Due to the second wave of the pandemic, the entire world is suffering. Definitely, it has impact on the business. However, we are staying cool and calm and continue to do what we are doing. That is the choice we have got. But yes there is an impact.

What is the motivation behind setting up ReadyAssist, which provides 24-hour emergency roadside assistance to vehicles?

I have the inclination of creating something which empowers people in the society. That empowerment can be financial empowerment or some job opportunity. Before starting out, I lost a friend to a road accident. So, the idea of ReadyAssist evolved to provide roadside assistance to commuters. The motivation is to assist people who are stranded on the road. Today, even during the lockdown, we do hundreds of breakdowns a day. These could be vehicles of doctors or ambulances or people moving for emergency reasons. So, this support is part of essential services. For example, imagine if a vehicle carrying oxygen cylinders is delayed due to breakdown, the entire purpose is lost. Vehicle plays an important role in our lives today.

Can you throw some light on the company's evolution?

We started with Bangalore with a very small team of six to seven inhouse members and about 30 mechanics. As we grow, we standardise various aspects of our business and started operating pan India. We have our own set up across all major cities and partner network across the State.

ReadyAssist has partnered with clients like Bounce, Rapido, Shell, Cars24, CEAT and many more. How does the revenue model work for these big clients?

We operate in two ways. Firstly, we have marquee clients and then we have vendors. Vendors can be our own staffers or our partners. Our revenue model works like this. We generate money from on-demand services and also from subscription model. In on-demand, an individual client comes in, and pay for the service. On the subscrption-based model, the client (usually an enterprise) pay for the year and we take care all roadside assistance services. In subscription model, we work with strategic large-scale partners. Currently, on-demand services are available in around 12 cities. Around 65 per cent of our money goes to the mechanic and the rest comes to the company.

In the subscription model, there is a bit of an underwriting risk that your company may face. How do you manage such risk?

It is all about underwriting risk. I am not saying that. If there is a wrong way of calculation, it is definitely going to be risky. Also, if there is an unexpected volume, it can be risky. However, the benefit of underwriting in India is due to the size of the country.

How does ReadyAssist help in creating blue collar jobs in the hinterland of India?

Not only blue-collar jobs, we are also creating highly skilled professionals in the market. Even an automobile or mechanical engineering graduate will not be able to confidently handle complex task without proper practical training. ReadyAssist operates a reskilling programme through its internal unit called 'Mecademy'where we train these engineers on various real-life issues faced by vehicles. Also, we upskill mechanics. For instance, we train a bike mechanic in fixing problems in cars. This way, he is able to handle a car customer and his earnings also go up. We also train mechanics in the communication skill apart from making them familiar with various computer skills like how to operate an app and others.

Are you going to certify the mechanics post the training?

We are holding discussions with the Tata Institute of Social Science (TISS) and Automotive Skill Development Council (ASDC) to certify our course from 'Mecademy'. Discussions are going on and we hope to close it soon. Firstly, we will certify 100 of our mechanics. Once we are good at the process, we plan to certify around1,000 people, which will then cover the entire 5,000 mechanics.

Do you plan to raise funds in the near future given the current situation?

Yes, we plan to raise money. Fund is very critical at this point of time given the pandemic situation. Money is very important to ensure that we stay in the market not just for the business, but also for the people. That is why it is important to ensure that we have enough cash reserve and cushion. We are internally discussing the quantum of fund we will raise and the timing. We expect that we will be doing something in the next three months.

Are you going to execute your expansion plans during this pandemic period? What are your thoughts on this matter?

Whatever plans we have; we will start executing after this wave recedes. We have never expected that this wave will be so intensive. However, we have an idea of expanding our mechanic network to around 15,000 in the next 24 months. We want to expand our subscription network also. We will also explore global markets if all our plans go well. As far as upskilling and reskilling is concerned, we want to train most of our mechanics in the EV (electric vehicle) segment as this space is going to be big in the coming years.