Dec 20 (Reuters) - Zoomcar ( ZCAR ) will launch a

chauffeur-driven cab rental product in the southern Indian city

of Bengaluru as it looks to test the waters in a larger part of

the transportation market, the self-drive car-sharing platform

told Reuters on Friday.

The move comes months after the cash-strapped company

terminated co-founder Greg Moran as CEO after an over a

decade-long tenure at the helm that saw the firm go public in

the United States.

Zoomcar ( ZCAR ) could face stiff competition in a market dominated

by well-heeled players like Ola and Uber ( UBER ) that primarily

offer intra-city ride-hailing services, but also offer cab

rentals.

The company said it will offer rentals for durations ranging

from two hours to over a month, aiming to cater to greater

demand for cars with drivers compared to its current self-drive

options.

"If we look at the market in India, most of the market is

always coming with drivers. So that is actually bigger for

sure," CEO Hiroshi Nishijima said in an interview.

Earlier this year, Zoomcar ( ZCAR ) exited international markets

citing a funding crunch and high marketing costs to grow outside

its home market, India.

In November, the company said it had substantial doubt about

its ability to continue as a going concern amid continuing

losses and the need to raise funds to meet debt and working

capital needs.

The cab rental product will be available on Zoomcar's ( ZCAR ) app

and customers will get to choose specific cars instead of a

category of vehicles.

The firm will aggregate cars and drivers for the service, a

model usually implemented to minimize costs related to acquiring

assets and employing staff.

The company does not plan to burn cash to provide discounts

and incentives to compete in the cab rental market, but will

price the service attractively, the CEO said.

Zoomcar ( ZCAR ) is raising funds and expects to use proceeds to

repay debt, cover monthly losses and invest in growth, Nishijima

said.