Company: ZCARW
Filing Date: 2025-06-30
Form Type: 10-K
Source: 0001213900-25-059675
Chunk: 26

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-06-30
Form: 10-K
Item: Item 1
Chunk 26
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 on our platform increase, we expect such increased
    proportions, if any, would further impact the CO2 output that our platform can reduce. Furthermore, these positive effects would
    be amplified if we are able to add more and more dense cities globally (such as Dhaka, Lagos, São Paulo and others), as the
    usage per car per month on our platform would likely continue to increase.

The Zoomcar Network Effect

Our platform affords Hosts
opportunities to independently generate income and establish small businesses in high growth economies where jobs and resources remain
scarce relative to need. Further, becoming a Host requires relatively little time and effort and affords participants a certain level
of autonomy and flexibility that resonates with individuals compared to more traditional ways to supplement household income. Additionally,
given that most completed trips are relatively local and rarely international, the entrepreneurial opportunities we create generally
result in income generated and spent largely locally, within Guests’ and Hosts’ own community or adjacent neighborhoods,
thereby potentially further benefiting other local businesses.

Trip-based Vehicle Protection

One of the concepts fundamental
to our platform is that a Host should not be responsible for vehicle repair costs if the vehicle was damaged during a Guest booking.
At the time of a booking, our Guests select from several possible trip protection options at different pricing levels. In these packages,
Guest liability for vehicle damage costs is typically capped at a set amount depending on the coverage fee selected by the Guest. If
damage to a listed vehicle occurs during a booking, the Host completes any necessary repairs at pre-approved service centers and Zoomcar,
on a case to case basis, bears the repair costs which falls within a standardized pre-approved range. To date we have opted not to obtain
third-party insurance for Host vehicle damage or for Guest or Host theft or other losses, as we believe it is more cost-effective to
manage the associated costs in-house through the collection of the Guest’s trip protection fees. We will continue to assess this
determination as our business grows and evolves over time.

Our Growth Strategy

Going forward, we plan to
continue improving platform functionality and offerings to better serve the mobility needs of additional Hosts and Guests within our
current core markets. Improvement of the core product combined with the development of additional features will likely provide the greatest
sustainable growth lever to the platform. We believe that additional spending on sales and marketing efforts may be useful in these efforts,
as most of our platform expansion to date has resulted from word-of-mouth and brand reputational effects