Could a self-drive car rental service work in Bangladesh?

Buying a car is costly in Dhaka and hailing an Uber ride all the time is tiresome and unpredictable. And public transport in the capital is not everyone's cup of tea either, no matter how cheap it is. 

AiA Ventures has come up with a solution for this with Nimbus, a self-drive car rental service. 

"The concept of Nimbus emerged from a simple yet profound insight: people increasingly want the benefits of using a car without the headaches of owning one," said Oliul Awal Jony, director of AiA Ventures and co-founder of Nimbus. 

"Whether it's the hefty upfront costs, ongoing maintenance, or the long-term commitment, car ownership often feels like a burden. AiA Ventures identified this gap in the market and decided to create a service tailored to modern lifestyles," he added. "Furthermore, Nimbus is not just a car rental service; it is a membership-based program designed for flexibility and freedom." 

At the heart of Nimbus is its membership model, a feature that distinguishes it from competitors.  

"This process involves a physical verification step, where a Nimbus representative visits the prospective member for documentation. Once approved, members pay a one-time membership fee of Tk10,000," said Md Sakil Uddin, a business development officer at Nimbus. 

The membership model allows the company to maintain a close-knit relationship with its customers while ensuring a streamlined and secure rental process. According to Nimbus, the verification process enhances safety and accountability, fostering trust between the company and its users. 

"Nimbus caters to a diverse customer base with its three-tiered car rental categories: Economy, Business, and Luxury. Each category is designed to meet specific needs and budgets, offering a wide range of vehicle models," said Jony. 

Beyond these categories, Nimbus also offers flexibility in rental durations and pricing, with significant discounts for extended use. For instance, a three-day rental earns a 10% discount, while a seven-day rental comes with a 19% discount. This pricing strategy ensures that customers always feel they are getting value for their money.

"We are expanding our reach from Toyota vehicles to other prominent automotive brands. The company is currently working on acquiring a diverse portfolio of cars, including Honda, Hyundai, Mazda, and Nissan models," said Sakil. 

As Nimbus allows users to rent a car and drive it themselves, those who value independence and privacy are its key customers. 

But for customers who prefer or need a driver, Nimbus has a straightforward process. They can hire a driver independently but must submit the driver's documentation to AiA Ventures for verification. This ensures an added layer of security. 

"AiA Ventures prioritises safety with its rigorous verification process and plans to introduce an insurance system within 2025. This will cover all types of damages and repairs, giving customers peace of mind," Jony added. 

Nimbus customers can also have their chosen car delivered to their preferred location.

However, there are challenges to running such a service in Bangladesh.

First, the membership-based model might deter casual or one-time users who are unwilling to commit to the verification process or pay the upfront membership fee. 

Additionally, the emphasis on self-drive cars, while innovative, may not suit everyone. Many Bangladeshi customers are accustomed to renting cars with drivers, and the added responsibility of driving may dissuade some from choosing Nimbus.

Furthermore, maintaining a fleet of vehicles in pristine condition will require substantial investment in upkeep, which could strain the company's resources over time.

The reliance on physical verification for membership might also slow down customer onboarding, especially in a fast-paced market where convenience is paramount.

Looking ahead, the company has set its sights on luxury vehicles, with plans to acquire models like Lexus, Land Cruiser, Crown, Civic, and Accord. This ambitious acquisition strategy also includes plans to incorporate European car brands into its fleet.