Ather Rizta BaaS Model vs Traditional Ownership : The Indian electric-scooter market is revolutionizing itself swiftly, and Ather has kept introducing new concepts continuously. With its launch of Ather Rizta, the company has now introduced a unique Battery-as-a-Service concept, under which customers can further opt for flexible ownership. But how does this compared with traditional ownership of scooters? Let us break this into simpler words to understand.
What is BaaS?
In short, when it is a Battery-as-a-Service model, the customer will not buy the battery on the scooter; it buys the scooter for a lesser amount and pays a fixed subscription every month to have the battery installed in the scooter. Thus, it is very affordable on the upfront end of Rizta, which is a plus for price buyers. Such subscription plans usually include battery replacement/upgrade, so the rider does not need to worry about battery life or performance issues.
How Traditional Ownership Works
In traditional ownership, what you do is purchase the scooter complete with its battery. Meaning, you would have a much larger cost upfront with the ownership of both scooter and battery. You will not have to pay any subscriptions every month, but you will be the one who needs to consider replacing the battery once it loses its effectiveness overtime.
Cost Comparison
Cost is the key issue here. The major factor is that the BaaS model reduces pricing during the initial purchase, making it easier for buyers to avoid spending a large amount upfront. Of course, there are monthly payments, which will build up over the years. Traditional ownership requires a higher one-time payment, but will be able to work cheaper in the long run since they will not have to pay any extra fees every month.
Convenience and Peace of Mind
BaaS is for the convenience of riders who do not want the fear of battery deterioration. Ather rebuts the concerns of sourcing the battery and provides a rider who is always good. Under traditional ownership, one is left with that option, giving complete authority to the owner. While some riders prefer owning the battery outright since they do not prefer on-going commitments like monthly payments.
So, if you want a low starting price and an easy-to-manage battery, then BaaS is the best. On the other hand, if you want things to be in your name without any more costs attached in the long term, then traditional ownership beats all.