Company: ZCARW
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-014437
Chunk: 245

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 8
Chunk 245
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. Such services also include the normal customer
support related to any vehicle breakdowns, tracking of vehicles, renter background checks, vehicle ownership checks and various other
activities which are part of an ongoing set of series required for successful listing, renting and completion of trip. These activities
are not distinct from each other and are not separate performance obligations. As a result, these series of services integrate together
to form a single performance obligation.

11

ZOOMCAR HOLDINGS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

In case of booking value collected
from the renter on behalf of the Host, the Company evaluates the presentation of revenue on a gross versus net basis based on whether
or not it is the principal(gross) or the agent (net) in the transaction. The Company considers whether it controls the right to use the
vehicle before control is transferred to the renter. Indicators of control that the Company considers include whether the Company is
primarily responsible for fulfilling the promise associated with the booking of the vehicle, whether it has inventory risk associated
with the vehicle, and whether it has discretion in establishing the prices for the vehicles booked. The Company determined that it does
not establish pricing for vehicles listed on its platform and does not control the right to use the host’s vehicle at any time
before, during, or after completion of a trip booked on the Company’s platform. Accordingly, the Company has concluded that it
is acting in an agent capacity, and revenue is presented net reflecting the facilitation fees received from the Marketplace service.
The customer simultaneously receives and consumes the benefits provided by the entity’s performance as the entity performs. Revenue
is recognized ratably over the trip period. The Company recognizes facilitation revenue from these performance obligations on a straight-line
basis over the duration of the rental trip using the output method as its performance obligation is satisfied over time. The Company
uses the output method based on rental hours or days, where revenue is calculated based on the percentage of total time elapsed in relation
to total estimated rental period. In the event a user books a trip extension, at the time the extension is booked, the service revenue
is recognized on a straight-line basis over the duration of the extension period.

During the nine months ended December
31, 2024, the Company launched the Fleet Management Program as an additional service for hosts, offering parking spaces for their vehicles.
The Company charges a fixed fee to the hosts for this service, which is