Company: ZCARW
Filing Date: 2025-06-30
Form Type: 10-K
Source: 0001213900-25-059675
Chunk: 612

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-06-30
Form: 10-K
Item: Item 1B
Chunk 612
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 gross
booking value, excluding taxes. Our revenue from services consists of our share of the service fees charged to the Hosts, net of incentives
and refunds. We collect these fees from the Guest and share a portion of the booking fee and trip extension with the Host post recovery
of our share of facilitation revenue. Daily we, or our third-party payment processors, disburse a portion of the GBV to the Hosts, less
the fees due from the Host to us. The amounts charged for the booking fee vary based on factors such as the vehicle type, the day of
the week, time of the trip, and the duration of the trip. Revenue is recognized ratably over the trip period as we satisfy our performance
obligations. 

We also require our Guests to choose one of the
three trip protection options. A per-trip amount (included in the booking fee) is charged for trip protection, which is collected upon
the booking. We recognize revenue from trip protection charges over the trip completion period.

Recorded revenue from services
is reduced by the portion of those incentives and credits paid to our Hosts and Guests that cannot be directly attributable to distinct
services performed by the Hosts and Guests. These incentives are treated as contra-revenue and reduce our net Revenue recorded in each
period. Those incentive costs that can be attributed to a distinct service (e.g., referral bonuses paid to referrer) are included in
sale and marketing expenses.

Others

We exclude from revenue
the taxes assessed by governmental authorities that are imposed on specific revenue- producing transactions and collected from customers/subscribers.

Cost of Revenue

Cost of revenue primarily
consists of, (1) personnel-related compensation costs of local operations teams and teams that provide phone, email and chat support
to users, (2) repair and maintenance expenses of vehicles, (3) payment gateway charges, (4) depreciation of devices for keyless entry
system and GPS which are installed in the vehicles of Hosts, (5) software support and maintenance, and (6) other direct expenses. We
expect that the cost of revenue will continue to increase on an absolute dollar basis for the foreseeable future to the extent that we
continue to see growth on the platform. However, cost of revenue may vary as a percentage of revenue from period to period based on activity
on the platform.

Technology and Development

Technology and development
expenses primarily consist of personnel-related compensation expenses for technology, product, and engineering teams, as well