Soham Shah, the chief executive of Selfdrive, a car subscription service in the United Arab Emirates (UAE) and Oman, was motivated to start a business after reading about the fragmented car rental industry in a newspaper article in 2004.

In 2014, Shah – from India – visited the UAE as it was on his bucket list. Captivated by the business opportunities, he relocated in 2016 and started Selfdrive.

Today, Selfdrive operates across the UAE, Qatar, Bahrain, Saudi Arabia, Oman, and has also extended to the United Kingdom and Ireland. The company collaborates with top car manufacturers and dealerships to manage a robust fleet ready to serve customers.

Before developing a strategy for the Indian market, Shah spent two years researching the seller’s market and gaining hands-on experience in car rentals. He had observed the disorganised state of India’s rental industry in 2004, and decided then to start a car rental company. “We conducted extensive market research and consulted international markets for inspiration. However, since most standard procedures were not applicable in India, we had to develop new protocols from scratch,” says Shah.

Born and raised in Pune, Shah’s parents were entrepreneurs. “My father was in the manufacturing of diamond cutting and mining tools, while my mother was involved in the food-processing industry,” he says. Shah’s grandfather established and operated a successful business empire despite having limited access to education. He successfully managed three distinct businesses in collaboration with international partners and maintained investments in real estate. Clearly, his motivation stems from his family.

When Shah decided to start a car rental business, he discussed it with his parents. “I started the car rental business with just ₹150,000, which covered the down payment for the first car and the basic requirement and infrastructure needed to set up the company,” says Shah.

What began with just one vehicle, Selfdrive gradually expanded its fleet. “The company distinguishes itself as a super-app that offers a fully integrated experience through direct partnerships with dealers and car manufacturers. This enables customers to access a wide range of cars that may not be available through other rental companies,” says Shah.

Additionally, Selfdrive offers flexible subscription options and uses Artificial Intelligence integration to customise customer profiles based on individual needs.

In 2017, Selfdrive became the first company in the Middle East to launch an electric vehicle subscription service, demonstrating its commitment to understanding market needs and introducing innovative solutions. The company is also investigating alternative ownership options such as on- demand vehicle subscriptions to address depreciating car values.

Speaking about the concept of car ownership, Shah explains that the trend has been changing, with more people opting for subscriptions or leases instead of purchasing vehicles outright. “One reason behind this shift is the realisation that cars are depreciating assets, losing value over time. Owning a car also comes with additional costs such as insurance, maintenance, and repairs, which can be a headache for some individuals.”

Another factor driving the shift towards car subscriptions and leases is the availability of aspirational vehicles, he says. “In the past, it was difficult to find high-end cars on subscription or lease plans. However, with companies like ours partnering directly with dealerships, customers can now access their dream cars through flexible plans tailored to their preferences,” says Shah.

Shah also explains that the luxury car rental market has witnessed a substantial rise in demand, primarily due to the convenience and adaptability provided by long-term rentals. A growing number of individuals are choosing to rent vehicles for one year before switching to a newer model, reflecting their desire to keep up with the latest trends.

As more people become aware of the financial benefits and convenience offered by car subscriptions and leases, Shah strongly feels that this trend will continue to grow among millennials seeking greater financial independence. By opting for these on-demand services instead of traditional car ownership, individuals can make smarter decisions regarding their finances and investments, he says.

Shah further adds that both short-term and long-term rentals play a significant role in the rental market. “We have observed a robust demand, spurred by the anticipated rise in tourism in Dubai as visitor numbers increase. We foresee a 50-50 division in market demand, with both short-term and long-term rentals contributing significantly to the rental market in the near future. This trend is likely to persist as Dubai continues to draw more tourists and visitors,” says Shah.

Dubai aside, Selfdrive recently expanded its operations into the UK, Scotland, and Ireland, by partnering with various car brands to offer a diverse range of vehicles. “We plan to extend our services to European countries and Turkey, while aiming to reach a global audience in the coming years,” he adds. Besides, Selfdrive is also collaborating with airline projects to provide seamless travel experiences.

“The ‘Arrive and Drive’ service launched by Selfdrive allows travelers to access cars at 15 international airports without any documentation. Customers can simply make reservations and find their cars ready at the airport upon arrival,” says Shah. – editor@nrifocus.com