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Taxi Market in India
- A Case Study of Delhi
Prepared by
Valoriser Consultants
Tel: +91-11-25546049 | Mobile: +91-99588355...
2© 2015 Valoriser Consultants Publication
Taxi Market Across the World
City Population
Areas
(Sq. Km)
No. of Cabs
Populati...
3© 2015 Valoriser Consultants Publication
Taxi Market in India
• In the absence of good quality public transport system, T...
4© 2015 Valoriser Consultants Publication
Market Segment – Trip Type Vs. User Type
Inter city Point to Point
(Traditional ...
5© 2015 Valoriser Consultants Publication
Key Cities in India – Potential Taxi Market
The following are the cities where t...
6© 2015 Valoriser Consultants Publication
Key Taxi Operators in India* – Presence
* Include Major Cities only
Companies De...
7© 2015 Valoriser Consultants Publication
Airport Traffic – Domestic and International
6.7
7.3
2.9
1.4 1.2 1.2 0.9 1.2 0.8...
Competitors Landscape
9© 2015 Valoriser Consultants Publication
Taxi Market in India – Competitive Landscape
Sr.
No.
Company
Name (Brand)
No. of...
Taxi Market – A Case Study of Delhi
Photo @ calloncab
11© 2015 Valoriser Consultants Publication
Types of Taxi
Radio Taxi Taxi
Tourist TaxiEconomy Radio Taxi
12© 2015 Valoriser Consultants Publication
Number of Taxis in Delhi
2005-08 2009-10 2010-11 2011-12 2012-13 2013-14 2014-1...
13© 2015 Valoriser Consultants Publication
Areas
Population
(Thousands)
5,024 876 -- 725 6,200 3,950 887
Demand Trend – De...
14© 2015 Valoriser Consultants Publication
Regulatory Structure in Delhi
Sr. No. Type Registration
1 Economy Radio Taxi DL...
Radio Taxi in Delhi – Legal Structure
16© 2015 Valoriser Consultants Publication
What is Radio Cab?
In order to provide safe and comfortable taxi service to loc...
17© 2015 Valoriser Consultants Publication
What is Radio Cab?
• The Transport Department, Govt. of NCT of Delhi has taken ...
18© 2015 Valoriser Consultants Publication
Delhi Radio Taxi Scheme – 2006 (Modified)
Licensee Profile
• Must be either a c...
19© 2015 Valoriser Consultants Publication
Delhi Radio Taxi Scheme – 2006 (Modified)
Licensee Profile
• Cab should be bran...
20© 2015 Valoriser Consultants Publication
Delhi Radio Taxi Scheme 2006 (Modified) - Issues
• An individual can apply for ...
21© 2015 Valoriser Consultants Publication
Registered Radio Cab Operators
Player Business Model No. of Vehicles License St...
22© 2015 Valoriser Consultants Publication
Tourist Taxi Vs. Radio Taxi
• As per law, Tourist Vehicle can not be operated a...
23© 2015 Valoriser Consultants Publication
Sec 74 (Contract Carriage Permit ) – MV Act 1988
• The vehicles shall be used o...
24© 2015 Valoriser Consultants Publication
• The permit holder shall cause to be prepared in respect of each trip a list i...
Key Players – Taxi Market in Delhi
26© 2015 Valoriser Consultants Publication
Types of CompaniesTypeof
Operator
• Individual operators or
cabs running in dif...
27© 2015 Valoriser Consultants Publication
Meru Cabs (V-link Travel Solutions)
• Meru Cabs is one of the largest taxi oper...
28© 2015 Valoriser Consultants Publication
Meru Cabs – Key Statistics
City Trips / Day Trips/Cab
Customers /
Trips
Km / Ca...
29© 2015 Valoriser Consultants Publication
Easy Cabs (Carzonrent)
• Easy Cabs promises 100% service delivery assurance
24X...
30© 2015 Valoriser Consultants Publication
Easy Cabs – Key Statistics
• Easy Cabs acquired Ridingo in April 2015 to foray ...
31© 2015 Valoriser Consultants Publication
Mega Cabs
• Mega Cabs is part of ‘Group Mega’ and was India’s
first GPS/GPRS Ra...
32© 2015 Valoriser Consultants Publication
Ola Cabs (ANI Technologies)
Founded In: January 2011
Founder: Bhavish Aggarwal ...
33© 2015 Valoriser Consultants Publication
Ola Cabs – Key Statistics
• Ola is looking to enter shuttle bus services for ur...
34© 2015 Valoriser Consultants Publication
Taxi For Sure (Serendipity Infolabs Pvt Ltd)
• Taxi For Sure is one of leading ...
35© 2015 Valoriser Consultants Publication
Uber
Founded In: March 2009
Founder: Travis Kalanick and Garrett Camp
Investor:...
36© 2015 Valoriser Consultants Publication
Savaari (Savaari Car Rentals Pvt Ltd)
Founded In: August 2006
Founder: Gaurav A...
37© 2015 Valoriser Consultants Publication
taxiGUIDE (Archaea Mobility Services)
• taxiGUIDE is an online car rental booki...
Airport Taxi Operation - Delhi
39© 2015 Valoriser Consultants Publication
Taxi Operation @ Delhi Airport
• Taxi Operators are still generating large chun...
40© 2015 Valoriser Consultants Publication
Black and Yellow Taxi – Delhi Airport
• Pre-paid cab without meters as having
c...
41© 2015 Valoriser Consultants Publication
Fare Comparison
DTC Express Metro Express Radio Cab
Dhaula Kuan INR 25 INR 80 I...
Taxi Market – Driver Recruitment
43© 2015 Valoriser Consultants Publication
Driver Recruitment Model – Asset Ownership
Meru Cab
(New)
Meru Cab
(Old)
Easy C...
44© 2015 Valoriser Consultants Publication
Driver Retention Model – Aggregator
• Initially, aggregators used to security d...
Thank You!!!
Valoriser Consultants
Tel: +91-11-25546049 | Mobile: +91-9958835533
Email: Info@valoriserconsultants.com / ja...
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Radio Taxi Market in India - A case study of Delhi

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Radio Taxi market is expanding in India. Besides traditional taxi companies like Meru, Mega, Easy and Tab Cab, there are lots of new technology companies are entering in this space (Olacabs, Taxiforsure and Uber are few of them). This sector is attracting lots of funding in the past. It is important to find out the key detail of this sector and Delhi gives the best example in the country. All kinds of players are competing in the market to build their market share. The Presentation gives the full insight about the market and players.

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Transcript of "Radio Taxi Market in India - A case study of Delhi"

  1. 1. Taxi Market in India - A Case Study of Delhi Prepared by Valoriser Consultants Tel: +91-11-25546049 | Mobile: +91-9958835533 Email: Info@valoriserconsultants.com| Website: www.valoriserconsultants.com Photo ©rtaxiamanecer
  2. 2. 2© 2015 Valoriser Consultants Publication Taxi Market Across the World City Population Areas (Sq. Km) No. of Cabs Population to Taxi Ratio New York 8,175,133A 790.0 57252C 104 London 7,750,000 1,572.1 22,500B 107 Paris 2,257,981 105.0 17,137B 131 Tokyo 13,190,000 2,188.0 47,236 131 Singapore 5,310,000 710.0 28,210 188 Seoul 10,140,000 605.2 70,000B 139 Delhi 16,787,941B 1,492.0 53,739 312 Tehran 7,804,000 686.3 77,962 109 Sao Paulo 11,320,000B 1,523.0 33,000 343 Note: Year Book - A. 2010 / B. 2011 / C. 2013
  3. 3. 3© 2015 Valoriser Consultants Publication Taxi Market in India • In the absence of good quality public transport system, Taxi plays an important role as mobility options in India. • According to Road Transport Yearbook, there are 2.3 million registered taxis plying across different states in India. This number includes all types of taxis. • There are around 500,000 -600,000 cabs offering taxi services in organized segment. • It is estimated that total market size is more than $9 billion and only 6-7% is organized. • Taxi market has witnessed a phenomenal growth in last 3-4 years and is currently growing at 15-20% per year. • New technology companies which are working on Aggregation model is experiencing a growth of 30-40% per year.
  4. 4. 4© 2015 Valoriser Consultants Publication Market Segment – Trip Type Vs. User Type Inter city Point to Point (Traditional 8 hrs/80 kms or 4 hrs 40/kms) Trip Type Airport Drop (Traditional One side Trip – Pickup or Drop) Intra city – Daily Usage (Traditional 250 kms per day or Destination based) User Type Corporate Business Travel – nearly 70% of the business Individual Personal Leisure Travel – (Retail) Travel Agencies and Online Travel Aggregators • New market segment is emerging in India where commuters are using taxi as «Personalized Public Transport» and hiring vehicle for short distances on daily basis. • Radio Taxi / Online Aggregator / Online Affliators are some of new concepts which are serving this segment. It is expected that this segment will grow at the rate of 20-25% in coming years.
  5. 5. 5© 2015 Valoriser Consultants Publication Key Cities in India – Potential Taxi Market The following are the cities where the existing operators are running cab service or looking to launch in future: 1. Delhi and NCR 2. Mumbai 3. Pune 4. Hyderabad 5. Bangalore 6. Jaipur 7. Chennai 8. Ahmedabad 9. Kolkata 10. Goa 11. Amritsar 12. Chandigarh 13. Lucknow 14. Agra 15. Indore 16. Ludhiana 17. Trichy 18. Kochi 19. Kozhikode 20. Trivandrum The rationale for selecting these cities: a) Big Cities in India b) Radio Cabs operator are operating c) High Airport Passenger Growth ListofCitieswith HighGrowth Potential
  6. 6. 6© 2015 Valoriser Consultants Publication Key Taxi Operators in India* – Presence * Include Major Cities only Companies Delhi Mumbai Pune Chennai Bangalore Hyderabad Jaipur Ahmedabad Kolkata Chandigarh Amritsar Ludhiana Goa Vadodara Surat Mysore Nagpur Ownership Meru Cab             Mega Cabs        Easy Cabs          Aggregator                  Taxi For Sure               UBER              Savaari *         
  7. 7. 7© 2015 Valoriser Consultants Publication Airport Traffic – Domestic and International 6.7 7.3 2.9 1.4 1.2 1.2 0.9 1.2 0.8 0.4 0.2 11.6 9.9 4.4 2.9 2.5 2.1 2.0 1.9 1.6 0.8 0.8 Delhi Mumbai Chennai Kochi Bengaluru Hyderabad Kozhikode Trivandrum Kolkata Ahmedabad Trichy 2006-07 2012-13 Growth in International Passenger Traffic – Key Airports, 2006-13 (Number in Million) 13.8 14.9 6.9 0.5 0.6 4.5 0.2 0.1 0.2 1.6 0.1 22.8 20.3 9.5 8.7 8.3 6.2 4.0 3.2 2.9 2.0 1.6 Delhi Mumbai Bengaluru Kolkata Chennai Hyderabad Ahmedabad Pune Goa Kochi Jaipur 2006-07 2012-13 Growth in Domestic Passenger Traffic – Key Airports, 2006-13 (Number in Million) Source: Airport Authority of India
  8. 8. Competitors Landscape
  9. 9. 9© 2015 Valoriser Consultants Publication Taxi Market in India – Competitive Landscape Sr. No. Company Name (Brand) No. of Cities No. of Cabs No. of Booking Daily Booking through Payment via Credit CardOn Call Website Mobile App 1 Meru Cab 20 15,000 35,000 20% 10% 70% 35% 2 Mega Cabs 07 3,500 15,000 60% 20% 20% -- 3 Easy Cabs 04 3,500 15,000 60% 20% 20% -- 4 TAB Cab 01 4,000 14,000 65% 10% 25% -- 5 Ola Cabs 92 100,000 -- 5% 5% 90% 45-50% 6 Taxi For Sure 44 15,000 40,000-45,000 10% 5% 85% 35-40% 7 Uber 18 -- -- -- -- 100% 100% 8 Savaari 56+ 3,000 -- 35% 65% -- -- 9 TaxiGuide 76+ -- -- 20% 80% 0% -- 10 Fast Track* 26 12,000 35,000 90% 10% 0% -- Savaari and TaxiGUIDE is operating in Garage-to-Garage segment, which involve outstation travel. * Fast Track is working on affiliation model. Major Cities are only 5 – Bangalore, Chennai, Hyderabad, Pune and Kolkata
  10. 10. Taxi Market – A Case Study of Delhi Photo @ calloncab
  11. 11. 11© 2015 Valoriser Consultants Publication Types of Taxi Radio Taxi Taxi Tourist TaxiEconomy Radio Taxi
  12. 12. 12© 2015 Valoriser Consultants Publication Number of Taxis in Delhi 2005-08 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 Total Cab Service 1,922 104 148 189 73 1,079 1,204 4,880 Local Taxi 887 449 521 173 492 481 95 7,209 Radio Taxi 680 2,142 2,235 1,011 188 313 565 6,428 Tourist Taxi 13,022 2,722 3,926 5,045 4,828 5,350 4,648 35,417 Economy Radio Taxi 1,463 0 962 2,115 901 318 381 4,436 Total 17,974 5,417 7,792 8,533 6,482 7,541 6,031 58,370 There are 58,370 taxis are registered in Delhi as on March 31, 2015, with a Life of Taxi is Eight (8) years only. CNG* 43% Diesel 53% Petrol 4% 80% of Tourist Taxi are running on Diesel and around 6% are on Petrol. * CNG Vehicles include CNG, CNG/Petrol, Petrol/CNG, Ret. CNG/Pet, Ret. CNG Kit 100% Radio Taxi Fleet is running on CNG, 30% is CNG only. 100% Local and Economy Radio Taxi are also running on CNG. There is slowdown in the registration of Radio Taxi in last 2 years. As per law, City operation should be done by CNG Taxi only.
  13. 13. 13© 2015 Valoriser Consultants Publication Areas Population (Thousands) 5,024 876 -- 725 6,200 3,950 887 Demand Trend – Delhi Taxi Demand Point 34% 21% 16% 12% 10% 4% 3% South Gurgaon Airport / Dwarka Central West East North According to booking trends of major Taxi operators, South Delhi has the highest demand for Taxi Service. The key demand point for Taxi Service in Delhi are:
  14. 14. 14© 2015 Valoriser Consultants Publication Regulatory Structure in Delhi Sr. No. Type Registration 1 Economy Radio Taxi DL1R T 2 Radio Taxi DL1R X / Y 3 Tourist Taxi DL1Y 4 Tourist Taxi - Premium DL1Z 5 Tourist Taxi (7 Seater or above) DLIV 6 Rent-a-Cab DL1N 7 Local Taxi DL1T • Economy Radio Taxi and Radio Taxi are allowed to play upto the NCR and Contract Carriage Permit are granted. • Rent a Cabs service and Tourist Taxi are allowed to ply all over India, with AITP permits. Statutory Regulations Taxi Permit NCR – National Capital Region / AITP – All India Tourist Permit Source: Taxi Wing - Transport Department, Govt. of NCT of Delhi
  15. 15. Radio Taxi in Delhi – Legal Structure
  16. 16. 16© 2015 Valoriser Consultants Publication What is Radio Cab? In order to provide safe and comfortable taxi service to local commuters and tourists, Delhi Tourism and Transport Department launched Radio Taxi Service in 2006. • Easy Cabs (Carzonrent India Pvt. Ltd.) launched its radio taxi service, with 250 radio taxis, in Delhi on December 28, 2006. – Initially, the government launched Air-conditioner Radio Taxis for local commuting with NCR region. • In 2010, the government launched non-AC radio taxi service for Delhi called “Economy Radio Taxi”. This service was launched at a flat fare of INR 10 per kilometre. • In December 2014, Transport Department revised the existing radio taxi scheme and become the first state in the country to recognize Aggregator model. – The new scheme is introduced for the regulation of radio taxi business in India, named Radio Taxi Scheme 2006 (Modified).
  17. 17. 17© 2015 Valoriser Consultants Publication What is Radio Cab? • The Transport Department, Govt. of NCT of Delhi has taken up Several major initiatives to protect the interest of commuters of Taxi/Cabs time to time, i.e. Fixation of fare, Installation of GPS, Calibration and Checking of fare meter at the time of annual fitness etc. • Pulsar/Procall Meters are installed in Radio Taxi. It needs to be calibrated every year. A Radio Taxi must have:  Registered with Authority with series number - DL1R  Licensee should own or aggregate a minimum fleet of 200 radio taxis  Fare Meter (Duly approved by Transport Authority)  GPS System and Tracking  Drivers with Commercial License and Public Service Vehicle Badge (PSV)  Booking can be accepted by Call Centre, Website and/or Mobile App Transport Initiatives
  18. 18. 18© 2015 Valoriser Consultants Publication Delhi Radio Taxi Scheme – 2006 (Modified) Licensee Profile • Must be either a company under the Companies Act, 1956 mandated to provide public transport services • Will abide by all relevant statues including Motor Vehicles Act, 1988 and the Information Technology Act, 2000. Operational Infrastructure • Shall ensure availability of adequate parking space for all taxis • Shall have a registered office in Delhi / New Delhi and details Fleet Size • Shall maintain a minimum fleet of 200 radio taxis either owned or through an agreement with individual taxi permit holders. License • The Operator shall be issued a regular license valid for a period of five years • Furnish a Bank Guarantee, in a format acceptable to the Transport department for an amount of INR 15,00,000.
  19. 19. 19© 2015 Valoriser Consultants Publication Delhi Radio Taxi Scheme – 2006 (Modified) Licensee Profile • Cab should be brand new (engine capacity of 750CC or above) and run on clean fuel. • Should be fitted with electronic fare meters on the front panel (dashboard). • Should be an LCD board to display that the vehicle is a radio taxi. • Must be fitted with GPS/GPRS based tracking devises which must be in constant communication with the Central Control. Working Condition • Working hours of drivers is to be limited in accordance to the Motor Transport Workers Act, 1961 Driver • Shall have a valid commercial driving license to drive a Radio Taxi and valid Public Service Badge • Shall be of good moral character without any criminal record.
  20. 20. 20© 2015 Valoriser Consultants Publication Delhi Radio Taxi Scheme 2006 (Modified) - Issues • An individual can apply for Economy Radio Taxi Permit (DL1RT) for a vehicle with engine capacity of 750 CC or more. However, the process for an individual to apply for Premium Radio Taxi Permit (DL1RX) for a vehicle with engine capacity of 1,000 CC or more is not defined. • There are numbers of Tourist Taxis (DL1Y) which are running on clean fuel (CNG). There is no process to transfer Tourist vehicles to Radio Taxi (DL1RT or DL1RX). • Transport Department does not allow individual radio taxi permit holders to sell their vehicles and transfer the permit. • Existing permit holders can not transfer the radio taxi vehicles in the name of individual.
  21. 21. 21© 2015 Valoriser Consultants Publication Registered Radio Cab Operators Player Business Model No. of Vehicles License Status Hybrid (Ownership + Aggregator) 1,459 Yes Ownership 1,016 Yes Ownership 1,386 Yes Ownership 55 Yes Ownership 185 Yes Ownership 96 Yes Smooth Cab Ownership Not launched the operation Yes Aggregator Not launched the operation Yes Aggregator -- Under Process Aggregator -- Under Process Aggregator -- Under Process Source: Taxi Wing - Transport Department, Govt. of NCT of Delhi 2015
  22. 22. 22© 2015 Valoriser Consultants Publication Tourist Taxi Vs. Radio Taxi • As per law, Tourist Vehicle can not be operated as Stage Carriage or Contact Carriage Vehicle or Radio Taxi or Local Taxi. • The evolution of new age taxi firms are trying to change the landscape. Tourist Taxi with AITP (All India Tourist Permit) has less regulation. Law is ambiguous. • Legally, City Taxi operator should have authorized fare meter installed but new age taxi firms are using mobile phone as fare meter. Indian Authorities are not aware of this new business model. • There are some local regulation which creates conflict. E.g. in Delhi, Local Taxi should use CNG only, whereas Tourist Taxi can be Diesel & Petrol. = Or ≠
  23. 23. 23© 2015 Valoriser Consultants Publication Sec 74 (Contract Carriage Permit ) – MV Act 1988 • The vehicles shall be used only in a specified area or on a specified route or routes. • Specified fares or rates of fares shall be charged and a copy of the fare table shall be exhibited on the vehicle. • A taximeter shall be fitted and maintained in proper working order, if prescribed. Radio Taxi are govern by Section 73, 74 of Motor Vehicles Act, 1988.
  24. 24. 24© 2015 Valoriser Consultants Publication • The permit holder shall cause to be prepared in respect of each trip a list in triplicate of tourist passengers to be carried in the vehicle, giving full particulars — (a) name of the passengers, (b) address of the passengers, (c) age of the passengers, (d) starting point and the point of destination. • The tourist vehicle shall either commence its journey, or end its journey, circular or otherwise, in the home State, subject to the condition that the vehicle shall not remain outside the home State for a period of more than 119 days [three months]. The tourist vehicle shall not be parked on any bus stand used by stage carriage and shall not operate from such bus stand. • The tourist vehicle shall be painted in white colour with a blue ribbon of five centimetres width at the centre of the exterior of the body and the word "Tourist" shall be inserted on two sides of the vehicle within a circle of sixty centimetres diameter. • The permit holder shall not operate the tourist vehicle as a stage carriage. Tourist Taxi Permits are governing by Rule 85 and 85(A) of CMVR, 1989. Rule 85 (Tourist Permit ) – CMVR Act 1989
  25. 25. Key Players – Taxi Market in Delhi
  26. 26. 26© 2015 Valoriser Consultants Publication Types of CompaniesTypeof Operator • Individual operators or cabs running in different part of country • 88-92% of the market is still unorganized. • The companies registered under Radio Cab Scheme. • It just constitutes 4- 5% of the market. • The company are affiliating with Taxi owners. • Follows Garage- to-Garage Model • The new model which is aggregating taxi under single brand. • It constitutes less than 0.5% . Key Planers • Individual Owners • Small Operators • Taxi Stands • Pre-paid Taxi • Meru Cabs • Easy Cabs • Mega Cabs • TAB Cab • TaxiGuide • Savaari • Cab24X7 • TaxiPixi • Uber • Ola Cabs • Taxi for Sure • Bookmycab Unorganized Market Radio Cabs Affiliator Aggregator There are broadly 4 (Four) different kinds of operators in Market:
  27. 27. 27© 2015 Valoriser Consultants Publication Meru Cabs (V-link Travel Solutions) • Meru Cabs is one of the largest taxi operators in India and is third largest taxi operators in the world. – The company was earlier following Asset- ownership Model and now started Aggregation model with ‘Meru Flexi’. • Meru Cabs is growing at annual growth of 30% and generated a revenue of INR 8 billion. • For the cabs owned by Meru Cabs, all maintenance responsibility is with company. It has maintenance tieup with the car dealers – Mahindra: Concept / Maruti: MSM / Tata: Autolink. Siddhartha Pahwa, CEO, Meru Cabs “There is a huge gap in the market. In 2007, Meru started the first nationwide technology- enabled taxi service. Meru has recorded profit of INR 36 million in 2013-14 and expected to generate a revenue of more than INR 7-8 Billion in 2015-16”. Founded In: 2006 Founder: Neeraj Gupta Investor: India Value Fund III Fund Raised: $93.1 million Cab Model: Assets Ownership & Aggregation
  28. 28. 28© 2015 Valoriser Consultants Publication Meru Cabs – Key Statistics City Trips / Day Trips/Cab Customers / Trips Km / Cab / Day Delhi 4,808 6 3 200 Mumbai 5,376 6 3 170 Bangalore 2,000 4 2.5 150 Hyderabad 1,400 3.5 2.5 275 Meru Flexi – Ownership with the Driver on National Permit and the company charge percentage from the drivers. In case of Meru Plus scheme permit is national permit and it is in owner scope. For this scheme Meru takes INR 25,000/ as security money and INR 400/day charges without any fail, if company provide more than INR 2,000/ day business that subscription will taken as 20% of business . Meru Eve – The company introduced women only cab and recruit women drivers to provide safe transport. Note: Meru data is for year 2013-14.
  29. 29. 29© 2015 Valoriser Consultants Publication Easy Cabs (Carzonrent) • Easy Cabs promises 100% service delivery assurance 24X7 in four major cities - New Delhi, Mumbai, Bangalore and Hyderabad. • The company has around 7,000 vehicles in its fleet. The services offered by Carzonrent are Easy Cabs, Myles, Intra-city, Outstation and Limo service. – It will launch its services in Ahmedabad, Pune, Chandigarh and Jaipur in the next six months. – Myles (Self-drive Service) is running with a fleet of 250 vehicles. It has raised an investment of INR 4 billion to have a fleet of 5,000 car by 2016-17. Founded In: 2006 Founder: Rajiv K Vij Investor: SIDBI Ventures, Westbridge Capital Partners and BTS Investment Advisors Fund Raised: $20 Million Cab Model: Assets Ownership Rajiv K Vij CEO of Carzonrent “Carzonrent is always been known for its customer centric approach and innovative initiatives. This approach will mitigate the issue of cab delivery in our approx. 6 million valued customers and will enhance their trust. We have well-built technology infrastructure which permits to preciously administer the flow of our large fleet size. We guarantee 100 % service delivery assurance else a free ride will be provided. But at the same time we are convinced, the customers will never have to face cancellation trouble.”
  30. 30. 30© 2015 Valoriser Consultants Publication Easy Cabs – Key Statistics • Easy Cabs acquired Ridingo in April 2015 to foray into into the ride share business, which it expects to be 75% of its total business in the next five years. • In order to increase, Easy Cabs, which acquired the online car rental service aggregator, QCABS for an undisclosed amount in 2012. City Trips / Day Trips/Cab Customers / Trips Km / Cab / Day Delhi Mumbai Bangalore Hyderabad Key Initiatives • Easy Cabs experiments with many different maintenance model. Drivers was made responsible for the maintenance of the cabs. However it was not successful. Schedule maintenance should be done by the fleet owner. Corrective maintenance should be done by the drivers. Maintenance
  31. 31. 31© 2015 Valoriser Consultants Publication Mega Cabs • Mega Cabs is part of ‘Group Mega’ and was India’s first GPS/GPRS Radio Taxi Service provider. • It is one of the largest players in the radio taxi industry with presence in 7 cities, which includes 6 Airports. – Mega Cab is the only radio cab operator in Amritsar and Ludhiana. – Mega is the only radio cab operator present in Kolkata but the fleet is maintained very poor and one has to book at least a day in advance. • The company has entered into agreement with Just Dial to serve cab booking in Delhi. Kunal Lalani Managing Director, Mega Cabs “The readiness of these markets to pay ₹18 or ₹20 per kilometre is not the only draw for operators. Newly developed infrastructure, including airports, is a major factor too. Mega Cabs started in Chandigarh in 2008 there were only two daily flights. Today there are over 10 flights per day.” Founded In: 2001 Founder: Kunal Lalani Investor: Group Mega (Parent Company) Fund Raised: NA Cab Model: Asset Ownership
  32. 32. 32© 2015 Valoriser Consultants Publication Ola Cabs (ANI Technologies) Founded In: January 2011 Founder: Bhavish Aggarwal and Ankit Bhati Investor: Matrix Partners and Tiger Global Management Fund Raised: $719.1 Million Cab Model: Aggregator • Ola Cabs has been really successful and currently emerged as the largest player in the market. The company is growing at 25-30% on MoM basis. – The average ticket size for Ola Cabs’ city taxi is around INR 250. • Around 95% of bookings is done through the mobile app. The company has witnessed a 100% increase QoQ on booking through the app since August 2012. – The app got more than 8 million visits across Android and iOS platform. The company is making more than 200,000 rides per day. Bhavish Aggarwal CEO, Ola Cabs “The cab industry is the fastest growing market in the transport segment. Our model of aggregation allows us to grow faster compared to traditional players. A large part of the market, especially in cities where cabs don't exist, is still unorganized. Through our perpetual technology innovation, intense analytics and seamless tech integration at every level, we clearly stand out from the rest.”
  33. 33. 33© 2015 Valoriser Consultants Publication Ola Cabs – Key Statistics • Ola is looking to enter shuttle bus services for urban commuters by aggregating tourist and chartered buses on its platform. Passengers will be able to make bookings by entering the desired destination and time preference; the app will then indicate the closest bus with available seating. City Trips / Day Trips/Cab Customers / Trips Km / Cab / Day Mumbai Delhi Bangalore Hyderabad • The company is facing legal challenges in Delhi for operating CNG vehicles on point-to- point basis. New Services Legal Tussles
  34. 34. 34© 2015 Valoriser Consultants Publication Taxi For Sure (Serendipity Infolabs Pvt Ltd) • Taxi For Sure is one of leading Cab Aggregator in India and was acquired by Ola Cab in February 2015. – The company has grown at a rate of 25-30% MoM and has clocked three million transactions. • As an aggregator of car/cab rentals, its offerings include local point-to-point pick-up and drop, airport transfer, local packages (for four or eight hours) and outstation packages. – Besides regular rentals, it provides luxury cars to the commuters. Founded In: June 2011 Founder: Raghunandan and Aprameya Investor: Bessemer Venture Partners, Accel Partners, Helion Venture Partners, Blume Venture Fund Raised: $36 Million Cab Model: Aggregator Bhavish Aggarwal CEO, OlaCabs There is significant complementary value that this acquisition adds both on the supply and demand sides for Ola and TaxiForSure. The latter follows a different model of supply and distribution by working with cab operators, while Ola works with driver- entrepreneurs.
  35. 35. 35© 2015 Valoriser Consultants Publication Uber Founded In: March 2009 Founder: Travis Kalanick and Garrett Camp Investor: Google Ventures, Goldman Sachs, Menlo Ventures and Bezos Expeditions Fund Raised: $6,907.50 Million Cab Model: Aggregator Allen Penn Head – Operations (Asia), Uber “The pace of growth in India has been the fastest for us globally which makes us extremely bullish about this market. But we do not want to be a niche service that is priced really high. The idea is to open up new customer segments and price points which make us an everyday type service for a whole different set of people. And since we now have the scale here in India doing so will be easier” • Uber officially launched in India in October 2013. Currently, the company is operating in 18 cities – the largest market outside the U.S. – The concept is gaining lots of popularity around the world. It is posing real challenge to traditional taxi market. – The company is signing up around 20,000 drivers every month around the world. • Uber is not sharing any information in the public domain as of now. There is no detail available about the number of taxis and bookings.
  36. 36. 36© 2015 Valoriser Consultants Publication Savaari (Savaari Car Rentals Pvt Ltd) Founded In: August 2006 Founder: Gaurav Aggarwal Investor: Intel Capital and Inventus- Fund I Fund Raised: $1 Million and $4.36 Million Cab Model: Aggregator • Savaari offers car rentals across 60 cities in India to both retail and corporate customers. • The company is specialized in Long-distance outstation trips and local half-day/full-day bookings. It has over 500 corporate clients. It is operating in Garage-to-garage segment which is more profitable venture compared with point-to-point model. • Savaari currently has a network of 150+ vendors and so far completed 74,000 transaction, 20 million trip kms and 1,500,000 trip hours to its credit. “We are connected with most of the airports in the country and a partnership with an airline will be an added advantage. The company aims to target OTAs (Online Travel Aggregators) in coming months so that people can also avail a cab or taxi while booking their air, bus or train tickets. About 35% of the bookings are done online and the balance via phone.” Gaurav Aggarwal CEO, Savaari Car Rentals
  37. 37. 37© 2015 Valoriser Consultants Publication taxiGUIDE (Archaea Mobility Services) • taxiGUIDE is an online car rental booking service. The company provides customers the option to compare vehicles, operators and pricing, to make an intelligent and informed booking online, based on vehicle availability. – Car rental operators too can use the website to upload their inventory and availability on a dynamic basis thereby enabling better asset utilisation. • The customers can make online reservations for which they have to pay 20% of the total amount at the time of booking. Founded In: October 2010 Founder: Ashok, Subash and Shashibushan Investor: R P Anand (Angel Investor) Fund Raised: $40,000 Cab Model: Taxi and Car Rental Aggregation / Affiliation “taxiGUIDE.in provides customers the option to compare vehicles, operators and pricing and then make an intelligent and informed booking online based on vehicle availability. A customer does not have to depend on online directories/yellow pages and make repeated calls for order fulfilment. He/she can book a car rental service at the click of a button.” Ashok Ananthakrishnan, CEO, taxiGUIDE
  38. 38. Airport Taxi Operation - Delhi
  39. 39. 39© 2015 Valoriser Consultants Publication Taxi Operation @ Delhi Airport • Taxi Operators are still generating large chunk of revenue from Airport Operation. The operators earn between 30-50% of their revenue from the airport segment. • The market for providing transport services to passengers to and from the IGIA (both its domestic and international terminal) is highly competitive and is presently dominated by various types of taxi services. • Existing available Cab Service at Terminals: Terminal 1: Pre-paid Taxi / Easy Cabs Terminal 3: Pre-paid Taxi / Meru / Mega
  40. 40. 40© 2015 Valoriser Consultants Publication Black and Yellow Taxi – Delhi Airport • Pre-paid cab without meters as having contract carriage permit – 1200 cabs at T1 and 1500 cabs at T3 • One black and Yellow taxi can operate for 15 years. The life of permit is unlimited. – INR 100,000 – Cost of permit in black market – One will need to buy permit to run the service • Driver can make maximum of 3 rounds (6:00 am to 1200 o’clock) – No leave allowed, if you take a leave then you need to pay INR 500. In case of Radio Cabs drivers can take a leave with prior intimation. In case of causal leave, you need to pay full day subscription.Copy of Permit – DLIT6454
  41. 41. 41© 2015 Valoriser Consultants Publication Fare Comparison DTC Express Metro Express Radio Cab Dhaula Kuan INR 25 INR 80 INR 185 New Delhi Railway Station INR 50 INR 150 INR 370 Kashmere Gate INR 100 INR 180* INR 552 * One interchange – Kashmere Gate to Connaught Place Bus Transport is the cheapest mode, whereas taxi offers the great flexibility.
  42. 42. Taxi Market – Driver Recruitment
  43. 43. 43© 2015 Valoriser Consultants Publication Driver Recruitment Model – Asset Ownership Meru Cab (New) Meru Cab (Old) Easy Cab Mega Cab Tab Cab Advance Payment INR 25,000 INR 25,000 INR 50,000 INR 30,000 Subscription INR 1,435 INR 900 INR 1,500 INR 1,200 Advertising Zero Zero Zero Zero Zero Per Call Booking Customer – INR 50 Customer – INR 30 Customer – INR 30 Customer – INR 30 Booking (Internet) Free Free Free Free Free Main Business Centre Mumbai Mumbai Delhi Delhi Mumbai * New Cab - Toyata Etios radio taxi / Old Cab - Logan & Indigo Drivers Engagement with Radio Cabs Operators • Radio Cab companies follow rigorous selection process for selecting the “Drivers” - Personal Interview >> Medical Test >> Driving Test >> Psychometric Test >> Background Verification. – The company also gives induction training on the areas of customer service, defensive driving, use of technology etc. to drivers.
  44. 44. 44© 2015 Valoriser Consultants Publication Driver Retention Model – Aggregator • Initially, aggregators used to security deposit of INR 10,000-15,000 from Taxi owner at the time of enrolment and charge a commission of 15-20% per booking. However, no security deposit is taken now. • As they compete for the same customer pie, the aggregators are making good customer service the key differentiator. The critical part of the game is “Driver”. If the drivers are happy , it leads to better customer experience. • The aggregators train drivers on health and hygiene, customer service, good driving practices and vehicle maintenance, among other things. Source: ET Power Now 2012
  45. 45. Thank You!!! Valoriser Consultants Tel: +91-11-25546049 | Mobile: +91-9958835533 Email: Info@valoriserconsultants.com / jaspal.singh@valoriserconsultants.com Website: www.valoriserconsultants.com

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