Uber shuts down its Mumbai office, lays off 600 workers.
Ola lays off 1400 workers.
Bounce lays off 130 (22% of total strength) workers.
The headlines related to the startups who bet on transforming Urban Mobility in India were scary as the COVID-19 lockdowns hit. But, this is not just a long term phenomenon. A preliminary analysis shows there can be a reversal of many trends in urban mobility. The pandemic is making Ownership attractive over Usership again for urban youth - it can be of new vehicles or used ones. While shared mobility services are required to look for new strategies, vehicle manufacturers get another opportunity to lure the utility-driven urban youth.
Let us understand these interesting turn of events
Impact of COVID-19 on Indian Venture Capital IndustrySam Ghosh
Given considerable ambiguity around changing economic and industrial landscapes, most VCs may refrain from investment in companies other than their own portfolio companies. As many sectors are being disrupted significantly by the pandemic, many portfolio companies may need funding just to keep afloat. Given India focused VCs ended 2019 with a record amount of dry powder, they are positioned well to increase their stake in existing portfolio companies through additional equity infusion at attractive valuations.
Early-stage companies will have a hard time raising funds in the coming few quarters as VCs likely to prioritise strengthening their own portfolio companies and companies with proven product-market-fit and revenue models. At the same time, late-stage startups may reap the benefits of their user base and move to develop revenue sources.
Investment instruments and terms may become more and more conservative both in terms of economics and control. We can expect stricter liquidity preferences, stricter vesting schedules, and protective provisions.
Venture debt is becoming popular as startups try to avoid dilution at unfavourable prices and terms.
The current situation creates unfavourable circumstances for VC exits. Venture Funds may like to delay exits if possible to avoid selling at deeply discounted valuations. This may result in a longer holding period and thus lower IRR. Funds at the tail end of their lives may be forced to offer exits to their limited partners (LPs). This may lead to underperformance and/or increased sales by the LPs to secondary funds. The pandemic has caused rapid digitisation of various sectors. Established offline players may look for acquisition to grow their digital capabilities. This may bring strategic deal opportunities for digital startups and exit opportunities for VC firms.
Fundraising activity is expected to be slow in the coming quarters given fund managers may want to limit their exposure to risky investments in the current economic scenario. The pandemic has caused and going to cause a correction in various asset prices from public equity, real estate, and commodities. Restructuring of portfolios likely to further discourage fund managers from investing in venture funds.
In this tough fundraising scenario, tried and tested fund managers will have a significant advantage over new fund managers.
Impact of COVID-19 on Indian MSME Sector: 16th September 2020Sam Ghosh
The Micro, Small, and Medium-sized businesses or the MSME sector contribute around ⅓ of the Indian GVA and half of the total exports.
Despite the great significance to the Indian economy, the sector deals with a lot of issues including lack of credit availability, low technology penetration, and cash-flow issues often created by their lower negotiating power dealing with the formal sector businesses.
The pandemic not only restricted revenue sources for many of the MSMEs but also created issues with credit availability, labour availability, transportation, and cash-flow.
The government of India has taken various measures to increase credit availability to the sector - from changing the definitions of MSMEs to credit guarantee schemes.
Although, the availability of credit may not be the silver bullet for the sector as the low credit uptake may be the result of low demand for credit.
Just before the COVID 19 lockdowns started, the Indian FinTech ecosystem toped their Chinese counterparts in fetching funding first time in history.
As the pandemic gripped the economy, the FinTech companies are now at a product launch spree from health insurance to affordable loans for consumers and MSMEs.
Increase digital adoption is causing rapid growth for the sector. For example, as offline channels for financial services got restricted by the lockdowns and fear of infection, InsurTech and Online Brokerages are becoming the primary channel for the distribution of financial products.
But, all is not hunky-dory. The looming recession is expected to take a toll on some sub-sectors. For example, Alternative Lending companies especially involved in Retail Lending may face a tough test for their business models and algorithms used by them as many of them may start to face increased defaults.
Let us look into the details.
Impact of COVID-19 on Indian Venture Capital IndustrySam Ghosh
Given considerable ambiguity around changing economic and industrial landscapes, most VCs may refrain from investment in companies other than their own portfolio companies. As many sectors are being disrupted significantly by the pandemic, many portfolio companies may need funding just to keep afloat. Given India focused VCs ended 2019 with a record amount of dry powder, they are positioned well to increase their stake in existing portfolio companies through additional equity infusion at attractive valuations.
Early-stage companies will have a hard time raising funds in the coming few quarters as VCs likely to prioritise strengthening their own portfolio companies and companies with proven product-market-fit and revenue models. At the same time, late-stage startups may reap the benefits of their user base and move to develop revenue sources.
Investment instruments and terms may become more and more conservative both in terms of economics and control. We can expect stricter liquidity preferences, stricter vesting schedules, and protective provisions.
Venture debt is becoming popular as startups try to avoid dilution at unfavourable prices and terms.
The current situation creates unfavourable circumstances for VC exits. Venture Funds may like to delay exits if possible to avoid selling at deeply discounted valuations. This may result in a longer holding period and thus lower IRR. Funds at the tail end of their lives may be forced to offer exits to their limited partners (LPs). This may lead to underperformance and/or increased sales by the LPs to secondary funds. The pandemic has caused rapid digitisation of various sectors. Established offline players may look for acquisition to grow their digital capabilities. This may bring strategic deal opportunities for digital startups and exit opportunities for VC firms.
Fundraising activity is expected to be slow in the coming quarters given fund managers may want to limit their exposure to risky investments in the current economic scenario. The pandemic has caused and going to cause a correction in various asset prices from public equity, real estate, and commodities. Restructuring of portfolios likely to further discourage fund managers from investing in venture funds.
In this tough fundraising scenario, tried and tested fund managers will have a significant advantage over new fund managers.
Impact of COVID-19 on Indian MSME Sector: 16th September 2020Sam Ghosh
The Micro, Small, and Medium-sized businesses or the MSME sector contribute around ⅓ of the Indian GVA and half of the total exports.
Despite the great significance to the Indian economy, the sector deals with a lot of issues including lack of credit availability, low technology penetration, and cash-flow issues often created by their lower negotiating power dealing with the formal sector businesses.
The pandemic not only restricted revenue sources for many of the MSMEs but also created issues with credit availability, labour availability, transportation, and cash-flow.
The government of India has taken various measures to increase credit availability to the sector - from changing the definitions of MSMEs to credit guarantee schemes.
Although, the availability of credit may not be the silver bullet for the sector as the low credit uptake may be the result of low demand for credit.
Just before the COVID 19 lockdowns started, the Indian FinTech ecosystem toped their Chinese counterparts in fetching funding first time in history.
As the pandemic gripped the economy, the FinTech companies are now at a product launch spree from health insurance to affordable loans for consumers and MSMEs.
Increase digital adoption is causing rapid growth for the sector. For example, as offline channels for financial services got restricted by the lockdowns and fear of infection, InsurTech and Online Brokerages are becoming the primary channel for the distribution of financial products.
But, all is not hunky-dory. The looming recession is expected to take a toll on some sub-sectors. For example, Alternative Lending companies especially involved in Retail Lending may face a tough test for their business models and algorithms used by them as many of them may start to face increased defaults.
Let us look into the details.
Bangladesh’s Startup Ecosystem has experienced incredible growth since its journey began in the early 2010s. The ecosystem is now coming of age, riding on - USD 200 million in investments, government initiatives, global & local accelerator programs propelling 1,000+ active Startups, who have created 1.5 million+ employment in Bangladesh with products and services which are increasingly becoming part of the country’s everyday life.
Check out the latest update on the Bangladesh Startup Ecosystem.
MSMEs in India have been adversely affected by the lockdown announced as a measure to contain the spread of COVID-19. This report outlines the impact of the pandemic on MSMEs and offers policy recommendations to support their recovery.
Flipkart-Walmart deal has been a landmark moment in the history of e-tailing. Since its humble beginnings in 2000, e-tailing has come a long way. The growth story of the industry in the last 10 years has been nothing less than remarkable. While the growth had slowed down between 2014-2016 due to multiple factors like DIPP regulations and demonetization, 2017 has seen a turnaround for the industry.
As per the World Travel and Tourism Council, global international arrivals may see a drop of up to 73%, and domestic arrivals drop up to 64% in the year 2020 due to the pandemic. This means a significantly difficult year for the hotel industry.
In India, industry-wide RevPAR of the hotel industry may drop by 50% in fiscal 2020-21 as per ICRA. ICRA warns of serious credit distress in the hotel industry.
Apart from economic shock, the pandemic may bring long-term changes in consumer preferences which may tilt towards hygiene and safety over price.
The industry may be forced to adapt automation and this may act as a window of opportunity for contact-less services such as shelf check-in kiosks, and online check-ins, etc.
It is quite difficult to predict the future of this industry but the post-COVID hotel industry will look very different from the pre-COVID one.
[Feb 2020] - India @ 2030 - Mohandas Pai 3one4 Capital
Version: February 2020
Authored By: Mr. T.V. Mohandas Pai
Powered By: 3one4 Capital Research
How Tech Entrepreneurship will create a USD 10 Trillion Economy.
LightCastle Partners’ annual flagship publication titled ‘The LightCastle Business Confidence Index 2019-20’ gauges the business sentiments of private sector leaders across several sectors, that have a notable contribution to the country’s economy. The industries to feature in this study were purposefully determined to include sectors that had the highest level of contribution to the country’s GDP.
Economic impact of the video services industry in India(2019)Social Samosa
Deloitte India in collaboration with FICCI has released a report today on the Economic Impact of the film, television, and online video services industry in India, 2019.
India is a growing country still under development. Its characteristics and assets will help it become a major player in the world’s financial, economic and commercial game. But this development relies heavily on the decisions the country will make between now and 2020. Its strong economic growth does not nonetheless absolve it from social and environmental responsibilities.
Bangladesh’s Startup Ecosystem has experienced incredible growth since its journey began in the early 2010s. The ecosystem is now coming of age, riding on - USD 200 million in investments, government initiatives, global & local accelerator programs propelling 1,000+ active Startups, who have created 1.5 million+ employment in Bangladesh with products and services which are increasingly becoming part of the country’s everyday life.
Check out the latest update on the Bangladesh Startup Ecosystem.
MSMEs in India have been adversely affected by the lockdown announced as a measure to contain the spread of COVID-19. This report outlines the impact of the pandemic on MSMEs and offers policy recommendations to support their recovery.
Flipkart-Walmart deal has been a landmark moment in the history of e-tailing. Since its humble beginnings in 2000, e-tailing has come a long way. The growth story of the industry in the last 10 years has been nothing less than remarkable. While the growth had slowed down between 2014-2016 due to multiple factors like DIPP regulations and demonetization, 2017 has seen a turnaround for the industry.
As per the World Travel and Tourism Council, global international arrivals may see a drop of up to 73%, and domestic arrivals drop up to 64% in the year 2020 due to the pandemic. This means a significantly difficult year for the hotel industry.
In India, industry-wide RevPAR of the hotel industry may drop by 50% in fiscal 2020-21 as per ICRA. ICRA warns of serious credit distress in the hotel industry.
Apart from economic shock, the pandemic may bring long-term changes in consumer preferences which may tilt towards hygiene and safety over price.
The industry may be forced to adapt automation and this may act as a window of opportunity for contact-less services such as shelf check-in kiosks, and online check-ins, etc.
It is quite difficult to predict the future of this industry but the post-COVID hotel industry will look very different from the pre-COVID one.
[Feb 2020] - India @ 2030 - Mohandas Pai 3one4 Capital
Version: February 2020
Authored By: Mr. T.V. Mohandas Pai
Powered By: 3one4 Capital Research
How Tech Entrepreneurship will create a USD 10 Trillion Economy.
LightCastle Partners’ annual flagship publication titled ‘The LightCastle Business Confidence Index 2019-20’ gauges the business sentiments of private sector leaders across several sectors, that have a notable contribution to the country’s economy. The industries to feature in this study were purposefully determined to include sectors that had the highest level of contribution to the country’s GDP.
Economic impact of the video services industry in India(2019)Social Samosa
Deloitte India in collaboration with FICCI has released a report today on the Economic Impact of the film, television, and online video services industry in India, 2019.
India is a growing country still under development. Its characteristics and assets will help it become a major player in the world’s financial, economic and commercial game. But this development relies heavily on the decisions the country will make between now and 2020. Its strong economic growth does not nonetheless absolve it from social and environmental responsibilities.
Publication: RITES Journal July 2010
Organization: Rail India Technical and Economic Service (RITES)
Source: www.rites.com
Date: July 2010
Summary: RITES Ltd., Government of India Enterprise was established in 1974, under the aegis of Indian Railways. It publishes an annual journal and discusses topics of contemporary significance.
Note: Please visit www.compad.in for more information
The presentation provides an overall view of the urban transportation market in India. The presentation provides glimpse of development in different cities. It also tries to highlight the growth of ITS and AFCS market and the strategy of three key global players for India. You may send your feedback on jaaaspal@yahoo.com.
COVID-19’s uneven trajectory has created a slower-than-expected rebound in urban travel worldwide. Some mobility modes, however, are poised to exceed pre-pandemic levels. BCG provides a breakdown of recovery levels in urban mobility by region and mode--and over time.
This webinar was hosted on October 17, 2014 and was presented by Amit Bhatt, Strategy Head - Urban Transport, EMBARQ India. Globally, 1.4 million people die each year in road traffic crashes. India accounts for 10% of those fatalities, and the majority of victims are pedestrians and cyclists. The new (draft) Road Transport and Safety Bill 2014, a huge step up from the previous Motor Vehicles Act 1988, was published for public comment by the Ministry of Road Transport and Highways. Amit Bhatt, who has been actively involved in discussions around this Act, presented the details of the same, highlighting the salient features and what it would mean for India if this bill were to be passed. The webinar addressed key issues relating to the current situation of road transport and safety in India, and showcased a comparison of the existing Motor Vehicles Act and the proposed new one. Amit also discussed the key provisions of the new Bill, its possible impact, and the road ahead.
The webinar recording can be accessed here - http://embarqindiahub.org/webinars/why-governments-latest-draft-road-transport-and-safety-bill-matters-india
An effective road safety management system covers three linked elements: institutional management functions, interventions and results. All countries should ensure that an effective road safety management system is in place.
Bihar Intelligent Transport & Habitat Authority guest949933
Bihar Intelligent Transport & Habitat Authority (BITHA) can be a powerful engine as well as a catalyst for a well-rounded, accelerated economic development of Bihar, improving quality of life and to create job opportunities.
Bihar Intelligent Transport and Habitat Authoritycvikash
BITHA is proposed to be a powerful engine as well as a catalyst for a well-rounded, accelerated economic development of Bihar, improving quality of life and to create job opportunities.
“To Study Performance Appraisal System in Kataria Automobile Pvt Ltd”Keyur Modi
The report is based on employee’s Performance in the organization. The importance of performance in understanding psychological phenomenon was given formal recognition early in the history of social psychology. From the time of the concept’s entry in to the language of psychology until now, interest in performance has been strong and growing. However, over the years performance have been studied with differing emphasis and methods.
Positive performance towards job are equivalent to job satisfaction whereas negative performance towards job has been defined variously from time to time. In short job satisfaction is a person’s performance towards job.
The purpose of this study was to determine employee’s performance in the organization at Kataria Automobile Pvt. Ltd. Bardoli. The objective is to study the performance appraisal system at kataria automobile pvt.ltd. Secondary objectives is generate and keep a acceptable stage of performance.To keep account in order to decide reward packages earnings arrangement, salary raise etc.To provide feedback to respondent regarding their performance and related status.To analysis and keep the promotional and other guidance programmers to know the employees expectations from the organization and, to make suggestions to improve the performance of the employees to the management.
For this study, I have used descriptive research design. I collected primary data through questionnaire and secondary data from books, internet, and website of the company. Sample size for this research study is 95 employees at the company. I framed the questionnaire in such a way by which primary and secondary objective of research can be satisfied.
You can Contact Keyur Modi At mkeyur1212@gmail.com with Question too!
If you got Interested in this Project Then Like, Followed and Share. If you Want some New PPTs on Another New Topics then Suggest me to prepare What u Want... IF POSSIBLE i will work on Your topics.
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Similar to Impact of Covid-19 on Indian Urban Mobility (20)
Business of Decentralized Finance: Economics, Finance, and Business aspects o...Sam Ghosh
Decentralized Finance or DeFi is a prominent use case of blockchain and crypto technologies. It is a rapidly growing sector and new business models are coming up every day. The dynamism of the sector makes understanding and tracking the sector challenging. Apart from that, most discussion around the sector is very technical in nature and can be hard to decipher. There is a need for learning materials that cover the fundamentals of DeFi in simple language without becoming esoteric.
This book is trying to create a general framework for DeFi platforms by presenting complex concepts around DeFi in simple language with case-studies from various DeFi Platforms - How does the Instadapp platform work? How does the Maker platform work? How does Uniswap mine liquidity? How does the Matic token create value for Polygon? How does governance work in Curve Finance? Tokenomics of Shushiswap? Cash-flows in Convex Finance? …..Apart from giving a taste of real DeFi platforms, these case studies will help you compare different technologies and business models.
This book is for techies who want to get into DeFi but are struggling to understand the business models and for business folks who want to understand DeFi but are struggling with the technical vocabulary.
This book does not assume any prior knowledge of blockchain and crypto technologies and contains a primer on these topics.
Get the book on Amazon Kindle
USA : https://www.amazon.com/dp/B09T2ND42B
UK: https://www.amazon.co.uk/dp/B09T2ND42B
Germany: https://www.amazon.de/dp/B09T2ND42B
France: https://www.amazon.fr/dp/B09T2ND42B
Spain: https://www.amazon.es/dp/B09T2ND42B
Italy: https://www.amazon.it/dp/B09T2ND42B
Netherlands: https://www.amazon.nl/dp/B09T2ND42B
Japan: https://www.amazon.co.jp/dp/B09T2ND42B
Brazil: https://www.amazon.com.br/dp/B09T2ND42B
Canada: https://www.amazon.ca/dp/B09T2ND42B
Mexico: https://www.amazon.com.mx/dp/B09T2ND42B
Australia: https://www.amazon.com.au/dp/B09T2ND42B
India: https://www.amazon.in/dp/B09T2ND42B
This book is a derivation of the popular Udemy course with the same name.
https://www.udemy.com/course/business-of-decentralized-finance-defi/?referralCode=A642642AEFE52E7BAB6E
Current was founded in 2015 by Stuart Sopp. Stuart Sopp was a Wall Steet trader and worked many major banks including Morgan Stanley, Citi, and Deutsche.
Currently Current offers three types of accounts - A free account, a premium account, and a teen account. The premium account costs US$4.99 a month and the teen account costs US$36 per year per teen.
No minimum balance and no-fee model is targeted at Millenials and Gen Z customers who face liquidity issues in managing their finances. Current primarily uses influencers to reach potential customers.
Current currently has more than 3 million customers and is valued at US$2.2 billion.
Monobank - First Mobile Only Bank in UkraineSam Ghosh
When Ukrainian Bank PrivatBank was nationalized in 2016, three senior executives of the bank Olekxandr Dubilet, Dmytro Dubilet, Mykhailo Rogalskyi, and Oleg Gorokhovskyi formed the Fintech Band. The goal of the Band was to develop fintech solutions. The Band took up a mobile bank project as their first project which eventually with the partnership of Universal Bank became the Monobank.
Currently, Monobank has more than 3.5 million customers in a country with a population of around 44 million. Monobank has processed more than 1.4 billion transactions worth around US$24 billion.
After their success in their home country, the Fintech Band team is expanding to the UK market with Koto Card which is a fixed fee credit service.
Kakao Bank - Trailblazing Neobank from South KoreaSam Ghosh
Kakao Bank was launched in the year 2017 as part of the Kakao Corp. Within 24 hours, Kakao Bank enrolled 300K subscribers, 2 million in 15 days. As of the end of 2020, this South Korean Bank had more than 13 million users, around a quarter of the South Korean population. The bank has reached a loan book size of 20.3 trillion KRW (US$17.94 billion). The operating income for the bank stood at 804 billion KRW (~US$708 million) with 113.6 billion KRW (~US$100 million) net profit in FY2020.
Just after 3 years of its launched Kakao Bank is already planning IPO and is valued at around 10 trillion won (US$9.15 billion).
Let us learn about Kakao Bank.
Indian payment company Paytm, backed by Softbank, launched barcode-based smartphone payment service PayPay in Japan back in 2018. In early March 2021, Softbank and LINE Corporation (Part of South Korean NAVER Corporation) agreed to merge PayPay and LINE Pay, the payment art of LINE Corp.
LINE is primarily a messaging service along with various other offerings such as Games, News, and Healthcare, etc. LINE has around 167 million monthly active users across Japan, Taiwan, Thailand, and Indonesia.
LINE Pay is an eWallet service with around 39 million registered users as of February 2021. Apart from eWallet, LINE Pay offers prepaid cards and credit cards.
With more than 12 million customers and more than US$2 billion annual revenue, Russian Tinkoff Neobank is a force to reckon with. Tinkoff products range from banking, wealth management, insurance, SAS based products to telecom for retail customers, SMEs, and large businesses.
Tinkoff products are highly adapted to the Russian lifestyle and socio-economic conditions proven by the rapid adoption of their products. The company was listed on the London stock exchange in 2013 and currently has a market cap of around ~US$10 billion.
Nubank: Neobank from Brazil to the whole Latin AmericaSam Ghosh
Brazil is the largest economy in Latin America with the largest population. Banking in Brazil seems well developed on paper - banking penetration little higher than the global average and extensive branch network.
But, Brazillian (and other Latin American countries) banks charge considerably higher interest margin when compared with the USA and China. Banks could get away with maintaining a high return on equity despite having high overhead costs because of the oligopolistic market structure in the Brazillian banking industry. As of 2018, the five largest banks in Brazil controlled more than 80% of the household credit market.
David Vélez, who was a partner at the Sequoia Capital, saw this opportunity. He founded EO2 Solucoes de Pagamento (EO2 Payment Solutions) along with Cristina Junqueira and Edward Wible in 2013. Soon the company was named Nubank.
Today Nubank has more than 26 million customers across Latin America and is valued at US$25 billion as of January 2021. The company offers digital accounts for individuals and businesses along with credit cards and life insurance.
Let us learn about their great journey.
Update Feb18 2021: The latest public user number for Nubank is 34 million as of January 2021.
https://blog.nubank.com.br/nubank-400-milhoes-rodada-investimento-2021/
Klarna - Swedish born 'Buy Now, Pay Later' GiantSam Ghosh
Update March 1st 2021: Klarna's valuation soared to US$31 billion after a huge USD1 billion fundraising. https://www.finextra.com/newsarticle/37576/klarna-confirms-mammoth-1-billion-fund-raise
Klarna is a Sweden based fintech unicorn that offers Consumer Credit, Merchant Solutions, and Banking services. Founded in 2005 by three students of Stockholm School of Economics, Klarna went from a rejected idea to a US$31 billion giant with a presence in 17 countries.
Klarna has been a pleasant outlier as a profitable fintech company from the beginning. In 2019 Klarna recorded a GMV of US$35 billion with net operating revenue of US$ 753 million.
Recently, Klarna is experiencing some growing pains especially in its quest to expand out of Europe. In 2019, Klarna reported a loss for the first time. In 2020 although their revenue is growing rapidly, losses also seem to expand.
Klarna spearheaded the 'Buy Now, Pay Later' industry and offer many innovative products. They have also created a unique playful brand.
Let us learn more about Klarna.
Impact of COVID-19 on Global Consumers and Emerging OpportunitiesSam Ghosh
COVID-19 is a humanitarian crisis as such the world has not seen for generations. For the consumers, it is a shock of unprecedented proportions. Consumer behavior in many sectors is going to change in the post-COVID era. Evidence shows that consumers have become more home-bound, digitally adopted, health-conscious, and community-driven.
While it is true that many industries suffered great losses and likely to struggle for years, opportunities are also emerging especially for emerging tech.
The pandemic has accelerated the shift to eCommerce and delivery services. Not only existing categories and consumer segments experienced a boost - new products and consumer segments found their way to eCommerce and delivery. As people are likely to continue spending more time at home, these sectors likely to see long-term growth. The retail subscription business also got a boost from the pandemic. The growth is driven by daily essentials. Hyper-local commerce, Social Commerce and Group-Buying are getting a stronghold as consumers are becoming more and more community-oriented.
Subscription Video on Demand (SVoD) services saw accelerated growth in both the number of subscribers and viewing time-span. The idea of entertainment is evolving supporting the SVoD sector for the long term.
The messaging apps saw significant growth due to the pandemic. Techcrunch reports that “WhatsApp has seen a 40% increase in usage that grew from an initial 27% bump in the earlier days of the pandemic to 41% in the mid-phase. For countries already in the later phase of the pandemic, WhatsApp usage has jumped by 51%”. As people were forced to stay at home - entertainment also shifted indoors. COVID worked as a boon to the Video Gaming and Esports industry.
COVID-19 has accelerated digital adoption in healthcare. Indian health platform Practo saw a 600% increase in online consultation between March and August 2020.
As COVID-19 forced the Gyms and similar facilities to remain closed, people quickly adopted to use fitness apps, streaming services, wearables, and connected devices. As making time for visits to the gym was inconvenient even before the pandemic, this change of behavior i.e. fitness at home likely to stay in the long term.
Social distancing forced people to buy pharmaceuticals online boosting the growth of online pharma. At the same time, sales of supplements increased significantly as people focused on boosting their immunity.
It is expected that small towns and rural areas are likely to lead the recovery creating opportunities for Agritech and Vernacular Tech.
SME Fintech Opportunity in the Developing CountriesSam Ghosh
There were around 30 million Small and Medium Size Enterprises (SMEs) in the developing countries before the pandemic. 2/3rd of global SMEs were located in developing countries. Developing countries with top SME populations are China, Thailand, Bangladesh, Indonesia, Tanzania, India, and Brazil, etc.
Most of these SMEs in the developing countries are in the informal sector lacking formal financing options and proper business processes. The pandemic has tested these SMEs to the extreme damaging their existing sales channels, supply chain, and financing sources. Governments in the developing countries (ex. China) pushing the SMEs for digital adoption to deal with revenue losses amid social distancing. This policy support can be very beneficial for startups in the sector.
COVID-19 pandemic has accelerated digital adoption in developing countries as consumers are forced to adopt digital channels for services such as education, healthcare, and grocery, etc. At the same time, small businesses are adopting digital channels for survival. This creates a unique opportunity for tech startups serving small businesses in developing countries.
The major problems that the small businesses are facing are revenue losses, operating challenges due to social distancing, lack of credit access, supply-side issues such as labour shortages, raw material access, etc. Tech startups can tap into the market by providing solutions to these pain points - sales platforms to deal with revenue losses, process automation to deal with operating challenges, alternative lending to deal with lack of credit access, HR management technologies to deal with the labour shortages, etc.
Small businesses often do not have defined operating processes. Changing customer preferences for digital modes require that small businesses also define their internal processes. The tech companies in this sector need to hand-hold small businesses by helping them design internal processes. Process automation companies are likely to benefit from this.
Often small businesses are dependent on one or few key people. As the pandemic brought drastic changes to our daily lives, the human aspect of the pandemic cannot be ignored. For example, many female entrepreneurs experienced the increased daily burden of homeschooling their children as the schools were closed. This kind of aspect brings unique opportunities for tech companies to design products for the sector.
As per the Credit Suisse Global Wealth Report 2020, global wealth stood at US$ 399 trillion as of the end of 2019. Most of the global wealth is primarily controlled by older men in North America and Europe.
As per BCG, the Asset Under Management (AuM) for the global asset management industry stood at US$88.7 trillion as of the end of 2019.
The pandemic found the wealth management industry dealing with margin pressure amid the popularity of passive products, on the verge of a great wealth transfer from the Baby Boomers to the younger generations, a rising share of women’s wealth, and increasing regulatory pressure. Revenue from beta is quickly diminishing due to the popularity of passive products. The focus is shifting from margin to increasing AUM.
As per Credit Suisse Global Wealth Report 2020, global wealth decreased by US$ 17 trillion between January and March of 2020. Recovery in the capital markets Q2 onwards led to the recovery of household wealth in Q2 to the levels of the end of 2019. Though the loss of growth represents a more than US$7 trillion loss from expected wealth levels by the end of the first half of 2020. Lower economic activity, lower consumption, and lower investments by both households and corporates likely to restrain household wealth growth for many coming years. The growth rate may not recover to pre-pandemic levels before the end of 2021. Global wealth per adult decreased by 0.4% in the first half of 2020. China is the biggest gainer and Latin America along with Africa are the greatest losers.
Though low-interest-rate environment, making time deposits less attractive, likely to boost funds flows to capital markets and demand for wealth management services.
At the same time, social distancing is forcing digital adoption in wealth management. Apart from that, the great wealth transfer will mean that the wealth management sector needs a paradigm shift in their client engagements. The expectations of tech-savvy millennials are very much different from the older generations. Instant gratification, higher involvement in the process, and constant monitoring are some of the features Millennials expect.
Micro-Investment platforms and Online Brokers are expected to be immensely beneficial as tech-savvy Millennials control more and more wealth. Self-service platforms that specialize in passive products (MF, ETF) are especially lucrative.
Hybrid services that combine human touch with tech efficiency will likely to become mainstream as wealth management firms push for cost-cutting and younger generations control more and more wealth.
As many traditional wealth management firms will look to increase their digital capabilities, WealthTech firms with proven business models are expected to be seen as attractive acquisition targets.
Before the pandemic, themes that were driving technology demand in the capital markets were regulatory compliance and cost-cutting.
Technologies in demand in the capital markets in recent years were Big Data, AI/ML, Blockchain, and Cloud Computing.
Even amid the global economic gloom, the capital markets were not uneventful. As per S&P Global, the global bond issuance is expected to be 16% higher in 2020 compared to 2019 amid record-low interest rates and markets flooded with liquidity. As per data from the World Federation of Exchanges, the value of share trading globally registered a 49.74% increase in H1 of 2020 compared with H2 of 2019. Exchange-traded derivatives volumes were up 23.4% when compared with H2 2019, reaching a record 21.72 billion contracts traded.
Cost pressures, exacerbated by COVID-19, likely to accelerate automation initiatives as banks cut headcounts rapidly.
Technology implementations due to compliance requirements such as the Second Markets in Financial Instruments Directive (MiFID2) and the Fundamental Review of the Trading Book (FRTB) likely to be sources of demand for companies providing technology to the capital market sector. The companies providing automation of compliance processes are already attracting a higher amount of venture funds. Technology providers focusing on Data Analytics, AI/ML, IaaS and Biometrics, etc. are expected to gain from the trends.
Another important factor is the rapid adoption of work-from-home culture. A significant portion of the firms may opt for a permanent work-from-home or a hybrid work culture. This shift is likely to increase demand for cloud transformation services.
Even though many financial services firms may cut IT spending for a few quarters, compliance automation, cost-cutting initiatives, and cloud transformations will continue to create demand for capital market technology providers.
The Emergence of Open Banking and COVID-19Sam Ghosh
Think about Google if it were only collecting a lot of data but never used or shared that data with anyone. That is how the traditional financial service companies are - they have enormous amounts of data but rarely use that data for any tangible purpose. Dormant data with the financial service providers can be used to not only create new applications but revolutionize credit markets, personal finance, business finance, wealth management, etc. in ways we cannot even totally envisage now.
Open Banking is a practice where banks provide access to consumer data to non-affiliated third parties generally through Application Programming Interfaces or APIs. Open Banking in the coming years is expected to lead a paradigm shift in Banking and Finance.
During the pandemic, the demand side of the equation for Open Banking is rapidly developing with growth in fintech markets and the adoption of digital channels by the consumers.
Both banks and tech companies have immense incentives to grab this opportunity and quickly tap the growth in digital markets and channels.
Concerns about data security, compliance with privacy laws, and regulatory uncertainties are acting as impediments to the growth of Open Banking.
Banks need to act quickly to leverage data to increase their reach and role. Traditional banking is rapidly getting commoditized and banks need to add data-driven value-added services in their portfolio to remain relevant. Value-added services such as personal financial planning, the alternative credit assessment, and real-time payments can not only create new revenue sources for the banks but provide strategic moats in the competitive landscape. Banks can achieve this through strategic partnerships and acquisitions. In-house development is difficult given the cultural shift needed in the banking sector may take time. Apart from that, the IT in the banking sector is generally focussed on regulatory requirements and not data-driven, customer-focused as required for Open Banking initiatives.
Policy uncertainty can severely hamper the growth of Open Banking. Policymakers need to balance caution on security-privacy matters but at the same time clear policy confusion to allow the sector to grow.
As per the Akamai report, “2020 State of the Internet / Security: Financial Services – Hostile Takeover Attempts”, cyber attackers are increasingly targeting API endpoints of financial services.
As per a Gartner report, by 2021, APIs will account for 90% of the attack surface. By 2022, according to Gartner, API abuses will become the most-frequent attack vector.
This is a cause of concern for the Banks contemplating opening up data access using APIs.
Global Alternative Lending Industry amid COVID-19Sam Ghosh
Alternative Lending emerged to provide credit access to individuals and businesses who lack credit history or in other words - the ‘thin file’ borrowers.
The primary segments of Alternative Lending are Consumer Finance and Small and Medium-Sized Business Finance.
The COVID-19 pandemic is causing most economies to shrink in 2020 causing enormous job losses, revenue losses for businesses, and in some cases business closures.
Consumer spending took a significant hit due to the pandemic. As per data from the National Bureau of Statistics of China, Retail Sales of Consumer Goods contracted by 20.5% in January-February 2020 compared to January-February 2019. The growth remained in the negative territory for the first two quarters of 2020.
Data from VISA and Mastercard show a drastic drop in credit-card debt use. Demand for household short-term credit is still subdued. As unemployment rates improve and retail sales pick up the pace, demand for consumer finance is expected to improve in the coming quarters.
Many SMBs are going through severe financial distress primarily due to lower demand and lack of access to credit. Many may not recover and close their businesses.
Lack of demand may hinder the SMBs from accessing and/or getting approval of business loans.
On the supply side, the alternative lending companies may struggle to access low-cost capital due to deteriorating balance sheets of the banks and NBFCs who likely to increase risk-premium and even avoid exposure to the high-yield segments.
Increasing bad loans may push policymakers to put safeguards in place which may lower profitability and limit access to capital for the alternative lenders. For example, China's Supreme Court slashed the legally protected ceiling of informal lending rate in August 2020. This is expected to unfavorably impact the profitability of alternative lenders.
Established fintech (Square, PayPal, etc.) are entering the lending business, and as credit demand improves we may see more of this trend.
Many large retailers such as Amazon, Macy’s, etc. partnered with financial services companies to extend consumer credit to their customers. We may expect to see acquisitions of fintech lenders by the retailers.
Stressed balance sheet likely to increase M&A activities in the sector.
Impact of COVID-19 on Indian Economy: 28th November 2020Sam Ghosh
Indian economy entered a technical recession with two consecutive quarters of GDP contraction in Q2 of FY 2020-21. Results released by the National Statistical Office shows that the GDP of India during the H1 of FY 2020-21 contracted by 15.7% at Constant (2011-12) Prices and 13.3% at Current Prices. While quarterly GDP in Q2 FY 2020-21 in rupee terms improved from Q1 FY 2020-21 by 23% at Constant Prices and 24% at Current Prices, it is still 7.5% and 4% lower than Q2 of FY 2019-20 at Constant and Current Prices respectively. The contraction was caused by a drastic drop in private consumption (which contributes around 60% of Indian GDP) and a drop in gross fixed capital formation.
The policy repo rate has been reduced by 115 basis points from the beginning of 2020 to record low levels. Apart from that, RBI is injecting liquidity through various Open Market Operations and Long Term Repo Operations. Currency with the public increased by ~20% from the end of 2019 to the end of October 2020. We can safely say that the Indian economy is flushed with liquidity.
Consumer inflation remains above the policy range of 4%+2%, and with a GDP contraction, the Indian economy is dealing with stagflation.
On the fiscal front, total monthly receipts remained lower than the same period last year for the whole Q1 and Q2 (April - September) FY 2020-21. October receipts show signs of improvement. Fiscal expenditure on the other hand was maintained at the same levels of FY 2019-20 in FY 2020-21 till October. The fiscal deficit stood at 119.7% of the Budget Estimates as of October 2020 due to lower receipts.
Credit growth remains sluggish especially due to lower credit uptake by the industry. Credit demand for smaller companies was low from the beginning of fiscal 2020-21 which improved after August. Credit uptake by the large corporates dropped after July 2020.
Household savings increased dramatically from Rs.5.32 lakh crores in Q4 of FY 2019-20 to Rs. 8.16 lakh crores in Q1 of FY 2020-21 - a more than 50% increase. Most of the increase in household savings resulted from an aversion to liabilities. It signifies that the households turned conservative about their finances to deal with impending financial distress.
The unemployment rate shot-up in April and May 2020 above 20% and moderated to below 10% levels after June 2020. Employees' Provident Fund records show healthy job creation in September 2020.......
Global Digital Payment Industry amid COVID-19Sam Ghosh
The COVID-19 pandemic has caused a drastic decline in economic activity worldwide. This decline of economic activity affected the digital payment industry as well.
Data from VISA and Mastercard show that payment volume decreased by ~20% in the April-June 2020 quarter from the Oct-Dec 2019 quarter. The July-September 2020 quarter saw a slight recovery but the volumes were still lower than the Oct-Dec 2019 quarter. Debit payments seem to recover quicker than credit payments, especially in the US.
Cross-border transactions were severely affected due to lower trade volumes and international travel restrictions. This resulted in a drastic drop in cross-border transaction revenue for both VISA and Mastercard.
Though the payment companies are facing revenue pain in the short term, long-term prospects are brighter. The pandemic has quickened the adoption of digital payments across age groups. Adoption of digital payments by the elderly population is especially encouraging and can open up new business opportunities.
Big-Tech companies are also rapidly increasing their foothold in the payments industry through acquisitions, patents, and partnerships.
New technologies such as contactless payment and real-time payment also got a boost due to the pandemic.
Governments around the world encouraged residents to use digital payment systems as the pandemic emerged. In some cases, restrictions were placed on cash withdrawals and cash transactions.
Fee waivers, compliance relaxations, consumer protection, etc, measures were taken to boost digital payments.
In India, the Reserve Bank of India has introduced a framework for the recognition of a Self-Regulatory Organisation for Payment System Operators.
Emerging Cyber Security Opportunity in IndiaSam Ghosh
$1.5 Trillion - that was the size of the Global cybercrime market in 2018. In comparison, the Indian GDP in the same year was US$2.7 trillion. The Dark web activity has spiked over 300% since 2017. As per NortonLifeLock Cyber Safety Insights Report, 2019, globally 350 million consumers became the victim of cybercrime only in one year.
Back in India, the rapid growth of data-driven tech companies prompted the lawmakers to enact a legal framework for cybersecurity, especially around financial services. These legal requirements have driven the Indian Cybersecurity industry.
Just when the COVID-19 lockdowns started, cyber-attacks also surged. Between March and April 2020, India has witnessed a staggering 86% increase in cyber-attacks.
Due to social distancing, many industries are rapidly getting digitised almost in a haphazard manner, bringing more and more critical data online. This is creating a fertile ground for cybercrime.
The pandemic is bringing unique challenges for both enterprises and individuals in terms of protecting their sensitive data from cyber-attacks.
People who never shopped online are now shopping online, people who shopped online before are shopping for things online which they never shopped online. The rapid growth of e-payments is bringing unique challenges not only in terms of payment security but also privacy and fake/illegal eCommerce sites.
The IT spending is expected to be lower this year but companies are prioritising security spending with spending on cloud and collaboration.
The medium to long-term prospects for the cyber-security industry looks promising given the rapid digitisation of digitally naive industries, increasing access to enterprise systems from mobile devices, migration of critical processes to the cloud systems, and increasing online transactions, etc.
Apart from that, as many small and medium-sized businesses are forced to adapt to the increasingly digital world, demand for cyber-security products/platforms is expected to increase as many smaller businesses may not have the resources to avail security consulting services.
The SaaS Opportunity and Indian SaaS IndustrySam Ghosh
As per a recent NASSCOM report, India is the birthplace of more than one thousand pure-play SaaS vendors with 150+ companies generating more than US$1 million Annual Recurring Revenue. There are already at least 6 SaaS unicorns. These companies generated ~US$3.5 billion in revenue in FY20.
As per the same report by NASSCOM, the addressable SaaS market by 2025 is expected to be US$400 billion. Indian players are well positions to tap this opportunity with their lower cost structure, competency in online & inside-sales, large workforce proficient in SaaS and mobile application development, and role models such as Zoho, Freshworks, Icertis, Druva, and Postman.
With the growth of work-from-home culture and rapid digitisation, the future of the SaaS sector looks bright especially for companies offering collaboration and security services.
Prospect of rapid digitisation of the Indian MSME sector likely to help Indian SaaS companies grow their domestic revenue base along with the export market on which the SaaS sector is traditionally dependent.
Although many SaaS companies may face short-term challenges due to lower IT spending by corporates. As per a Gartner report, Global IT spending in the year 2020 is expected to be 8% lesser than in 2019. Vertical SaaS companies focused on sectors such as Travel, Hospitality, Restaurants, etc. may face considerable challenges due to the pandemic.
As investor focus changes from “growth at all cost” to sustainability and profitability, SaaS offers business models with a clear path to profitability.
As Zoho’s Sridhar Vembu suggests, the pandemic may cause the SaaS industry consolidation as SaaS businesses driven by venture capital money may face challenges in raising further funds and their customers tighten their wallets.
Impact of COVID-19 on Indian IT and BPM SectorSam Ghosh
India is the world leader in IT and BPM services accounting for ~55% of the global services sourcing business.
As per a Gartner report, the global IT spending in 2020 is expected to be 8% less than in 2019. Not only that, the technology demand mix is going to be very different in the post-pandemic world than in the pre-pandemic era.
The industry which is primarily dependent on export markets is being tested by travel and VISA restrictions. This brings a lot of operational challenges for the IT Service companies.
The IT service majors are adopting cloud-based operating models that require the lesser physical presence of IT professionals, enhances the security of the cloud, and enable collaboration online.
As the recovery timeline for different countries and industries are likely to vary significantly, the IT service companies need to dynamically organise infrastructure and human resources to defend and acquire revenue opportunities.
In general, demand for Security, Collaboration, Mobility, and Cloud applications is going to drive the demand in the coming quarters.
Need for a low-touch operating model, need for hiring local talents, dynamic restructuring of human capital, etc. favour the large diversified IT Service companies over smaller players in the post-pandemic world.
FMCG or Fast Moving Consumer Goods are products that have a short shelf life and sold quickly at a relatively low cost. These are the products which are used by consumers in their daily life, for example, bread, meat, dairy products, soft drinks, etc.
FMCG sector is the fourth largest sector in the Indian economy. Another importance of this sector is that the health of the sector works as a quick indication of consumer sentiment and changing consumer preferences.
The impact of the pandemic on the sector varied by product categories. For example, Healthcare and Homecare sectors performed well while Grooming and Beverage were negatively impacted.
As the effects of the lockdowns subside, most categories show signs of recovery but the pandemic is leaving some systemic changes.
Similar to many sectors, the pandemic has quickened the speed of online sales. At the same time, opened up some novel distribution channels - food delivery apps and ride-sharing apps are being used for FMCG distribution.
If we talk about consumer sentiment, the consumers have become extremely value-oriented as evidenced by picking value packs over bulk packages.
As the consumers may be looking for ways to cut costs while maintaining quality of living, previously impulsive purchases may convert to discretionary. Packaging these impulsive purchase products with essential products may help in preserving the product categories.
Putting the SPARK into Virtual Training.pptxCynthia Clay
This 60-minute webinar, sponsored by Adobe, was delivered for the Training Mag Network. It explored the five elements of SPARK: Storytelling, Purpose, Action, Relationships, and Kudos. Knowing how to tell a well-structured story is key to building long-term memory. Stating a clear purpose that doesn't take away from the discovery learning process is critical. Ensuring that people move from theory to practical application is imperative. Creating strong social learning is the key to commitment and engagement. Validating and affirming participants' comments is the way to create a positive learning environment.
Kseniya Leshchenko: Shared development support service model as the way to ma...Lviv Startup Club
Kseniya Leshchenko: Shared development support service model as the way to make small projects with small budgets profitable for the company (UA)
Kyiv PMDay 2024 Summer
Website – www.pmday.org
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[Note: This is a partial preview. To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
Sustainability has become an increasingly critical topic as the world recognizes the need to protect our planet and its resources for future generations. Sustainability means meeting our current needs without compromising the ability of future generations to meet theirs. It involves long-term planning and consideration of the consequences of our actions. The goal is to create strategies that ensure the long-term viability of People, Planet, and Profit.
Leading companies such as Nike, Toyota, and Siemens are prioritizing sustainable innovation in their business models, setting an example for others to follow. In this Sustainability training presentation, you will learn key concepts, principles, and practices of sustainability applicable across industries. This training aims to create awareness and educate employees, senior executives, consultants, and other key stakeholders, including investors, policymakers, and supply chain partners, on the importance and implementation of sustainability.
LEARNING OBJECTIVES
1. Develop a comprehensive understanding of the fundamental principles and concepts that form the foundation of sustainability within corporate environments.
2. Explore the sustainability implementation model, focusing on effective measures and reporting strategies to track and communicate sustainability efforts.
3. Identify and define best practices and critical success factors essential for achieving sustainability goals within organizations.
CONTENTS
1. Introduction and Key Concepts of Sustainability
2. Principles and Practices of Sustainability
3. Measures and Reporting in Sustainability
4. Sustainability Implementation & Best Practices
To download the complete presentation, visit: https://www.oeconsulting.com.sg/training-presentations
Recruiting in the Digital Age: A Social Media MasterclassLuanWise
In this masterclass, presented at the Global HR Summit on 5th June 2024, Luan Wise explored the essential features of social media platforms that support talent acquisition, including LinkedIn, Facebook, Instagram, X (formerly Twitter) and TikTok.
Cracking the Workplace Discipline Code Main.pptxWorkforce Group
Cultivating and maintaining discipline within teams is a critical differentiator for successful organisations.
Forward-thinking leaders and business managers understand the impact that discipline has on organisational success. A disciplined workforce operates with clarity, focus, and a shared understanding of expectations, ultimately driving better results, optimising productivity, and facilitating seamless collaboration.
Although discipline is not a one-size-fits-all approach, it can help create a work environment that encourages personal growth and accountability rather than solely relying on punitive measures.
In this deck, you will learn the significance of workplace discipline for organisational success. You’ll also learn
• Four (4) workplace discipline methods you should consider
• The best and most practical approach to implementing workplace discipline.
• Three (3) key tips to maintain a disciplined workplace.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
3.0 Project 2_ Developing My Brand Identity Kit.pptxtanyjahb
A personal brand exploration presentation summarizes an individual's unique qualities and goals, covering strengths, values, passions, and target audience. It helps individuals understand what makes them stand out, their desired image, and how they aim to achieve it.
LA HUG - Video Testimonials with Chynna Morgan - June 2024Lital Barkan
Have you ever heard that user-generated content or video testimonials can take your brand to the next level? We will explore how you can effectively use video testimonials to leverage and boost your sales, content strategy, and increase your CRM data.🤯
We will dig deeper into:
1. How to capture video testimonials that convert from your audience 🎥
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The world of search engine optimization (SEO) is buzzing with discussions after Google confirmed that around 2,500 leaked internal documents related to its Search feature are indeed authentic. The revelation has sparked significant concerns within the SEO community. The leaked documents were initially reported by SEO experts Rand Fishkin and Mike King, igniting widespread analysis and discourse. For More Info:- https://news.arihantwebtech.com/search-disrupted-googles-leaked-documents-rock-the-seo-world/
Improving profitability for small businessBen Wann
In this comprehensive presentation, we will explore strategies and practical tips for enhancing profitability in small businesses. Tailored to meet the unique challenges faced by small enterprises, this session covers various aspects that directly impact the bottom line. Attendees will learn how to optimize operational efficiency, manage expenses, and increase revenue through innovative marketing and customer engagement techniques.
The key differences between the MDR and IVDR in the EUAllensmith572606
In the European Union (EU), two significant regulations have been introduced to enhance the safety and effectiveness of medical devices – the In Vitro Diagnostic Regulation (IVDR) and the Medical Device Regulation (MDR).
https://mavenprofserv.com/comparison-and-highlighting-of-the-key-differences-between-the-mdr-and-ivdr-in-the-eu/
2. Impact of COVID-19 on Indian Urban Mobility by Sam Ghosh 19th July 2020
Pre-COVID Urban Mobility
Pre-COVID U-Mobility How Does Urban India Commute? Forces at Play Post-COVID Urban MobilityStakeholders
3. Impact of COVID-19 on Indian Urban Mobility by Sam Ghosh 19th July 2020
Private Final Consumption Expenditure on Transport by Indians
● Expenditure on transportation by households is growing faster than the economy. It stood at ~$220 billion in
2017-18.
Note: Rs. 16.23 trillion = ~US $220 billion @ 1 USD = Rs. 75.18
Pre-COVID U-Mobility How Does Urban India Commute? Forces at Play Post-COVID Urban MobilityStakeholders
Indian Transportation Market Transportation Infrastructure Issues with Transportation
4. Impact of COVID-19 on Indian Urban Mobility by Sam Ghosh 19th July 2020Source: BCG
Consumer Segments: Share of Consumption Expenditure by Location
● Share of transportation consumption in the urban areas was a little less than 50% in 2018 but growing faster
than the rural areas. It was expected to be ~60% by 2025.
Metropolitan: Population of more than 4 million, Tier 1: Population between 1 to 4 million, Tier 2:
Population between 0.5 to 1 million, Tier 3: Population between 0.01 to 0.5 million, Tier 4: Population
between 10,000 to 100,000, Rural: Population less than 10,000
Pre-COVID U-Mobility How Does Urban India Commute? Forces at Play Post-COVID Urban MobilityStakeholders
Indian Transportation Market Transportation Infrastructure Issues with Transportation
5. Impact of COVID-19 on Indian Urban Mobility by Sam Ghosh 19th July 2020
Indian Urban Population
● One of the reasons for the quicker growth of the urban transportation market is the rapid urbanisation of
India. By 2050 the Indian Urban Population was expected to be 866 million.
Data: World Bank
Pre-COVID U-Mobility How Does Urban India Commute? Forces at Play Post-COVID Urban MobilityStakeholders
Indian Transportation Market Transportation Infrastructure Issues with Transportation
6. Impact of COVID-19 on Indian Urban Mobility by Sam Ghosh 19th July 2020
Indian Urban Population
● ...and was expected to be ~53% of the Indian population from merely 31% in 2010.
Data: World Bank
Pre-COVID U-Mobility How Does Urban India Commute? Forces at Play Post-COVID Urban MobilityStakeholders
Indian Transportation Market Transportation Infrastructure Issues with Transportation
7. Impact of COVID-19 on Indian Urban Mobility by Sam Ghosh 19th July 2020
Registered Motor Vehicles in Whole India
● In 2016 India had 230 million registered vehicles, out of which more than 73% were 2-wheelers.
Data: MOSPI 2018
Pre-COVID U-Mobility How Does Urban India Commute? Forces at Play Post-COVID Urban MobilityStakeholders
Indian Transportation Market Transportation Infrastructure Issues with Transportation
8. Impact of COVID-19 on Indian Urban Mobility by Sam Ghosh 19th July 2020
Vehicular Penetration in India
● Vehicular penetration in India is really low, especially for cars. A lot of growth potential in this respect.
Data: Ministry of Housing and Urban Affairs, 2019
Pre-COVID U-Mobility How Does Urban India Commute? Forces at Play Post-COVID Urban MobilityStakeholders
Indian Transportation Market Transportation Infrastructure Issues with Transportation
9. Impact of COVID-19 on Indian Urban Mobility by Sam Ghosh 19th July 2020
Vehicular Penetration in Urban India
● Vehicular penetration (2012 data) is considerably higher in the urban areas which is normal.
Data: Ministry of Housing and Urban Affairs, 2019
Pre-COVID U-Mobility How Does Urban India Commute? Forces at Play Post-COVID Urban MobilityStakeholders
Indian Transportation Market Transportation Infrastructure Issues with Transportation
10. Impact of COVID-19 on Indian Urban Mobility by Sam Ghosh 19th July 2020
Registered Motor Vehicles in Urban India
● Registered motor vehicles in the million+ cities grew at CAGR 11.5% between 2006 and 2016.
Data: MOSPI
Pre-COVID U-Mobility How Does Urban India Commute? Forces at Play Post-COVID Urban MobilityStakeholders
11. Impact of COVID-19 on Indian Urban Mobility by Sam Ghosh 19th July 2020
Citywise Registered Motor Vehicles
● Delhi had the most number of registered motor vehicles as of 2016, followed by Bangalore and Chennai.
Data: MOSPI
Pre-COVID U-Mobility How Does Urban India Commute? Forces at Play Post-COVID Urban MobilityStakeholders
Indian Transportation Market Transportation Infrastructure Issues with Transportation
12. Impact of COVID-19 on Indian Urban Mobility by Sam Ghosh 19th July 2020
Issues with Transportation: Pollution
● India had 6 out of 10 most polluted cities in the world in 2019.
Source: IQAir
Pre-COVID U-Mobility How Does Urban India Commute? Forces at Play Post-COVID Urban MobilityStakeholders
Indian Transportation Market Transportation Infrastructure Issues with Transportation
13. Impact of COVID-19 on Indian Urban Mobility by Sam Ghosh 19th July 2020
Issues with Transportation: Pollution
● Greenpeace 2018 report: The cost of pollution caused by fossil fuel to the Indian economy is around
USD $150 billion.
● Health issues created by pollution also causes around a million deaths a year in India.
● IQAir 2019 Air Quality Report: India has the 5th worst air quality with 58.1 average PM2.5 concentration
(µg/m³).
● Delhi has the worst quality of air in the world with 98.6 PM2.5 concentration.
Source: IQAir
Pre-COVID U-Mobility How Does Urban India Commute? Forces at Play Post-COVID Urban MobilityStakeholders
Indian Transportation Market Transportation Infrastructure Issues with Transportation
14. Impact of COVID-19 on Indian Urban Mobility by Sam Ghosh 19th July 2020
Issues with Transportation: Traffic Congestion
● TomTom - Bengaluru, Mumbai, Pune and New Delhi : 4 India cities are among the top 10 congested
cities in the world
○ Bengaluru at no.1.
● BCG - The cost of congestion in 4 metros - Delhi, Mumbai, Bangalore, and Kolkata was more than USD
$22 billion.
Source: BCG Report, April 2018
Pre-COVID U-Mobility How Does Urban India Commute? Forces at Play Post-COVID Urban MobilityStakeholders
Indian Transportation Market Transportation Infrastructure Issues with Transportation
15. Impact of COVID-19 on Indian Urban Mobility by Sam Ghosh 19th July 2020
Issues with Transportation: Traffic Congestion…
● OECD: Estimated hours lost per worker per year for traffic congestion in Delhi - 76.8 hours.
● Move in Sync Report - Indians spend 7% of their day in office commute.
Ranking City Average Speed (km/h)
1 Chennai 25.7 km/h
2 Hyderabad 21.2 km/h
3 Delhi-NCR 20.6 km/h
4 Pune 19.9 km/h
5 Bangalore 18.7 km/h
6 Mumbai 18.5 km/h
Pre-COVID U-Mobility How Does Urban India Commute? Forces at Play Post-COVID Urban MobilityStakeholders
Indian Transportation Market Transportation Infrastructure Issues with Transportation
16. Impact of COVID-19 on Indian Urban Mobility by Sam Ghosh 19th July 2020
Pre-COVID U-Mobility How Does Urban India Commute? Forces at Play Post-COVID Urban MobilityStakeholders
Indian Transportation Market Transportation Infrastructure Issues with Transportation
Issues with Transportation: Traffic Congestion: Mass Transportation was hailed as the solution
17. Impact of COVID-19 on Indian Urban Mobility by Sam Ghosh 19th July 2020
Issues with Transportation: Parking Space Constraint
● Centre for Science and Environment - “a car runs only for 400 hours on an average in a year, and is
parked the rest of the time (8,360 hours or 95%).”
● Supreme Court: “Parking problem blocking prosperity of Delhi”
● In Delhi, “ at least one person has been killed every month because of parking-related disputes, say the
police.”
● Pune has 2.5 million registered two and four-wheelers but has parking space for only 1,800 vehicles.
● “Bangalore 6th in the world for worse parking”
● “Lack of parking space, more vehicles worsen Mumbai traffic”
Pre-COVID U-Mobility How Does Urban India Commute? Forces at Play Post-COVID Urban MobilityStakeholders
Indian Transportation Market Transportation Infrastructure Issues with Transportation
18. Impact of COVID-19 on Indian Urban Mobility by Sam Ghosh 19th July 2020
Issues with Transportation: Dependence on Fossil Fuel
● India is heavily dependent on crude oil imports.
○ In FY 2018-19 India imported 87% Crude oil.
● At USD $141 billion, crude oil was 27% of total imports and the largest import category for India.
● CEEW: “95 percent of the Indian transport sector’s demand for fuel is met by petroleum-based
derivatives, with 72 percent met by diesel, 23 percent by petrol, and the remainder by a fuel mix
comprising CNG, LPG, etc.”
● IEA - transportation solely accounts for ~48% of oil consumption in India as of 2017 and increasing
rapidly..
Pre-COVID U-Mobility How Does Urban India Commute? Forces at Play Post-COVID Urban MobilityStakeholders
Indian Transportation Market Transportation Infrastructure Issues with Transportation
19. Impact of COVID-19 on Indian Urban Mobility by Sam Ghosh 19th July 2020
How Does Urban India Commute?
Pre-COVID U-Mobility How Does Urban India Commute? Forces at Play Post-COVID Urban MobilityStakeholders
20. Impact of COVID-19 on Indian Urban Mobility by Sam Ghosh 19th July 2020
Behaviour of Urban Commuters - CEEW Study
● About 70% of Indian urban dwellers travel distances below 10 km for work and education. The average time spent
traveling (one-way) is 27 minutes.
● Over half of urban India walks (more than 500 meters) for their weekly needs, followed by the use of personal
motorbike and public transport.
● Gender, occupation, and age are significant determinants of use of non-motorised transport (NMT). Women and
individuals in the 18–34 years age group are more likely to use public transport and NMT options than men and
individuals in the age group of 45 years or above.
● Men, working individuals, and individuals older than 45 years are significantly more likely to use private modes of
transport.
● Personal cars are the most frequently used modes of transport among people living in Northern India.
● Tier 2 and Tier 1 cities have a significantly higher two-wheeler use as compared to metros.
● The average distance traveled to access public transport is 1.4 km and the majority of them walk the first-mile
distance.
Pre-COVID U-Mobility How Does Urban India Commute? Forces at Play Post-COVID Urban MobilityStakeholders
Urban Commuter Behaviour Mode Share
21. Impact of COVID-19 on Indian Urban Mobility by Sam Ghosh 19th July 2020
Mobility Mode Share in Indian Cities
● Urban commuters primarily walk, followed by the use of 2-wheelers. The use of transportation increases
with the size of the city.
Data: Ministry of Housing and Urban Affairs, 2019
Pre-COVID U-Mobility How Does Urban India Commute? Forces at Play Post-COVID Urban MobilityStakeholders
Urban Commuter Behaviour Mode Share
22. Impact of COVID-19 on Indian Urban Mobility by Sam Ghosh 19th July 2020
Desirable Mobility Mode Share in Indian Cities - National Transport Development Policy Committee, 2013
Data: Ministry of Housing and Urban Affairs, 2019
Para- Transit: Transportation service that supplements larger public transit systems by providing
individualized rides without fixed routes or timetables.
Pre-COVID U-Mobility How Does Urban India Commute? Forces at Play Post-COVID Urban MobilityStakeholders
Urban Commuter Behaviour Mode Share
23. Impact of COVID-19 on Indian Urban Mobility by Sam Ghosh 19th July 2020
Pre-COVID U-Mobility How Does Urban India Commute? Forces at Play Post-COVID Urban MobilityStakeholders
Stakeholders
24. Impact of COVID-19 on Indian Urban Mobility by Sam Ghosh 19th July 2020
Pre-COVID U-Mobility How Does Urban India Commute? Forces at Play Post-COVID Urban MobilityStakeholders
Ownership Offerings
2-Wheeler Manufacturers
4-Wheeler Manufacturers
Bicycle Manufacturers
Used Vehicle Dealers
Usership Offerings
Public Transport Providers
Paratransit Services
Ride-Hailing Services
Ride-Splitting Services
Ride-Sharing Services
2 Wheeler Sharing
Car sharing Services
Microtransit
Urban
Mobility
Needs
High-Level Used VehiclesManufacturers Public Transport Shared Mobility
25. Impact of COVID-19 on Indian Urban Mobility by Sam Ghosh 19th July 2020
Pre-COVID U-Mobility How Does Urban India Commute? Forces at Play Post-COVID Urban MobilityStakeholders
Automobile Manufacturers in India
Source: IBEF
High-Level Used VehiclesManufacturers Public Transport Shared Mobility
26. Impact of COVID-19 on Indian Urban Mobility by Sam Ghosh 19th July 2020
Pre-COVID U-Mobility How Does Urban India Commute? Forces at Play Post-COVID Urban MobilityStakeholders
Automobile Manufacturers in India: Sales
● In FY 2018-19, 26.3 million units were sold in India. 3.4 million were passenger vehicles and 21.2 million
were 2-wheelers.
Source: SIAM
High-Level Used VehiclesManufacturers Public Transport Shared Mobility
27. Impact of COVID-19 on Indian Urban Mobility by Sam Ghosh 19th July 2020
Pre-COVID U-Mobility How Does Urban India Commute? Forces at Play Post-COVID Urban MobilityStakeholders
Automobile Manufacturers in India: Sales
Source: SIAM
High-Level Used VehiclesManufacturers Public Transport Shared Mobility
28. Impact of COVID-19 on Indian Urban Mobility by Sam Ghosh 19th July 2020
Pre-COVID U-Mobility How Does Urban India Commute? Forces at Play Post-COVID Urban MobilityStakeholders
Automobile Manufacturers in India: Sales
● ~66% of Passenger Vehicles sold were Cars and 64% of 2-Wheelers sold were Motorcycles.
Source: SIAM
High-Level Used VehiclesManufacturers Public Transport Shared Mobility
29. Impact of COVID-19 on Indian Urban Mobility by Sam Ghosh 19th July 2020
Pre-COVID U-Mobility How Does Urban India Commute? Forces at Play Post-COVID Urban MobilityStakeholders
Bicycle Manufacturers in India
● Atlas Annual Report 2018-19: India produces approximately 10% of the global annual bicycle production.
Global production is around 150 million which makes Indian production ~15 million.
● The annual domestic demand for bicycles in India is approximately 12 million units, out of which around 4.0
million units is government demand for the various welfare schemes.
● Exports out of India are primarily to Africa and the less developed economies and negligible to western
markets.’
● The bicycle market in India is projected to grow at a CAGR of over 11% till 2021.
● The mass-market segment is experiencing a sluggish growth of between 4-6% annually the premium &
lifestyle segment is growing at a CAGR of over 30%.
● The market size for the lifestyle cycles is estimated at 0.25 million units annually.
High-Level Used VehiclesManufacturers Public Transport Shared Mobility
30. Impact of COVID-19 on Indian Urban Mobility by Sam Ghosh 19th July 2020
Pre-COVID U-Mobility How Does Urban India Commute? Forces at Play Post-COVID Urban MobilityStakeholders
Bicycle Manufacturers in India
Hero Cycles Hero Cycles is the largest manufacturer of bicycles in India producing 5.2 million cycles per
annum. Hero Cycles acquired Firefox Bikes - India’s largest premium bicycle brand.
Atlas Cycles Atlas Cycles is one of the top bicycle producing companies in the world, with a capacity to
produce 4 million bicycles per year.
Avon Cycles Avon Cycles offers wide choices from MTB Bicycles, Ladies Bicycles to Kids Bicycles.
TI Cycles TI Cycles is the parent company of premium brands such as BSA, Hercules, Montra, and Mach
City.
La-sovereign La Sovereign is India's leading brand in imported bikes having a wide range of premium high
end, Mountain, Geared, BMX, MTB, Kids, and Road Bicycles. LA SOVEREIGN Bicycles is a
joint venture between Thailand & India Based companies to market Bicycle & Kids Toys of high
quality & world-class designs to the Indian consumers.
Firefox Bikes Firefox Bikes is a premium brand offering a various type of bicycles from Mountain Bikes, City
Bikes, Road Bikes, Ladies, and Kids Bikes.
Road Master Road Master India is the fastest-growing bicycle brand in India. It offers various types of
bicycles from Mountain Bikes, City Bikes, Road Bikes, Ladies, and Kids Bikes.
High-Level Used VehiclesManufacturers Public Transport Shared Mobility
31. Impact of COVID-19 on Indian Urban Mobility by Sam Ghosh 19th July 2020
Pre-COVID U-Mobility How Does Urban India Commute? Forces at Play Post-COVID Urban MobilityStakeholders
Used Vehicle Market in India
● IndianBlueBook: Pre-owned car market has grown steadily in FY19, it has crossed the 4 million unit mark
and is 1.2x the size of the new car market.
● Over 170 million pre-owned car queries in FY19
Source: IndianBlueBook
High-Level Used VehiclesManufacturers Public Transport Shared Mobility
32. Impact of COVID-19 on Indian Urban Mobility by Sam Ghosh 19th July 2020
Pre-COVID U-Mobility How Does Urban India Commute? Forces at Play Post-COVID Urban MobilityStakeholders
Public Transport in India: Metro Rail
Source: Ministry of Housing and Urban Affairs, 2019
Operational:
642 km
Under Construction:
691 Km
High-Level Used VehiclesManufacturers Public Transport Shared Mobility
33. Impact of COVID-19 on Indian Urban Mobility by Sam Ghosh 19th July 2020
Pre-COVID U-Mobility How Does Urban India Commute? Forces at Play Post-COVID Urban MobilityStakeholders
Public Transport in India: Metro Rail
● Between 2004 and 2019, India added Metro Rail lines at CAGR of 18.6%.
Source: Ministry of Housing and Urban Affairs, 2019
High-Level Used VehiclesManufacturers Public Transport Shared Mobility
34. Impact of COVID-19 on Indian Urban Mobility by Sam Ghosh 19th July 2020
Public Transport in India: Bus Services
● MORTH 2015-16: 54 State Road Transport Undertakings (SRTUs) comprising of 24 State Road Transport
Corporations (SRTCs), 12 Companies, 8 Government Departmental Undertakings and 10 Municipal
Undertakings, providing passenger transport services for rural, inter-city, and urban areas.
● There were 129,179 busses in operation in FY 2015-16 and performed more than 540 billion
passenger-kilometers.
● There are 8 are metropolitan cities based SRTUs.
● Bangalore Metropolitan TC had the largest fleet strength of 6,648 and Chandigarh TU had the lowest fleet
strength of 494 as on 31st March 2016.
Pre-COVID U-Mobility How Does Urban India Commute? Forces at Play Post-COVID Urban MobilityStakeholdersPre-COVID U-Mobility How Does Urban India Commute? Forces at Play Post-COVID Urban MobilityStakeholders
High-Level Used VehiclesManufacturers Public Transport Shared Mobility
35. Impact of COVID-19 on Indian Urban Mobility by Sam Ghosh 19th July 2020
Public Transport in India: Bus Services: Physical Parameters of SRTUs in Metropolitan Cities during 2015-16
Pre-COVID U-Mobility How Does Urban India Commute? Forces at Play Post-COVID Urban MobilityStakeholdersPre-COVID U-Mobility How Does Urban India Commute? Forces at Play Post-COVID Urban MobilityStakeholders
Source: Ministry of Road Transport and Highways
High-Level Used VehiclesManufacturers Public Transport Shared Mobility
36. Impact of COVID-19 on Indian Urban Mobility by Sam Ghosh 19th July 2020
Public Transport in India: Cost of Public Transport
Source: CSE 2019
Pre-COVID U-Mobility How Does Urban India Commute? Forces at Play Post-COVID Urban MobilityStakeholdersPre-COVID U-Mobility How Does Urban India Commute? Forces at Play Post-COVID Urban MobilityStakeholders
High-Level Used VehiclesManufacturers Public Transport Shared Mobility
37. Impact of COVID-19 on Indian Urban Mobility by Sam Ghosh 19th July 2020
Public Transport in India: Mode wise Travel Cost: Delhi
Source: CSE 2019
Pre-COVID U-Mobility How Does Urban India Commute? Forces at Play Post-COVID Urban MobilityStakeholders
High-Level Used VehiclesManufacturers Public Transport Shared Mobility
38. Impact of COVID-19 on Indian Urban Mobility by Sam Ghosh 19th July 2020
Public Transport in India: Mode wise Travel Cost: Bangalore
Source: CSE 2019
Pre-COVID U-Mobility How Does Urban India Commute? Forces at Play Post-COVID Urban MobilityStakeholders
High-Level Used VehiclesManufacturers Public Transport Shared Mobility
39. Impact of COVID-19 on Indian Urban Mobility by Sam Ghosh 19th July 2020
Public Transport in India: Issues with Public Transport
Source: CSE 2019
Pre-COVID U-Mobility How Does Urban India Commute? Forces at Play Post-COVID Urban MobilityStakeholders
High-Level Used VehiclesManufacturers Public Transport Shared Mobility
40. Impact of COVID-19 on Indian Urban Mobility by Sam Ghosh 19th July 2020
Paratransit or Intermediate Public Transport (IPT) services
● These are privately owned and informally operated shared mobility services, typically provided by 3-wheeled
auto-rickshaws with a capacity of three to six passengers per vehicle.
● Paratransit services provide both point to point (P2P) and shuttle services between fixed origins and
destinations, forming the largest share of shared trips in many Indian cities.
Source: CSE 2019
Pre-COVID U-Mobility How Does Urban India Commute? Forces at Play Post-COVID Urban MobilityStakeholders
High-Level Used VehiclesManufacturers Public Transport Shared Mobility
41. Impact of COVID-19 on Indian Urban Mobility by Sam Ghosh 19th July 2020
Shared Mobility
(Niti Aayog)
Pre-COVID U-Mobility How Does Urban India Commute? Forces at Play Post-COVID Urban MobilityStakeholders
Ride-Hailing Ride Splitting Ride Sharing
2 Wheeler
Sharing
Carsharing Microtransit
On-demand services that
link riders to for-hire drivers
who are using their own
vehicles as commercial
vehicles.Also known as
Ride-sourcing or e-hailing.
Ex. Uber and Ola.
Algorithm-based splitting of
a ride between strangers
(often).
Ex. UberPOOL and Ola
Share.
Ridesharing is similar to
ride-sourcing, in which trips
are shared by travellers,
but with the exception that
drivers are not considered
“for-hire,” though they can
receive some forms of
compensation to recover
their cost.
Ridesharing can be
acquaintance-based,
organization-based, or
ad-hoc.
Time-sharing of 2-wheelers.
Can be of docked, dockless,
and peer-to-peer.
Docked: Users can pay to
obtain and return bikes
at docking stations
throughout the service area.
Dockless: GPS enabled
bikes need not be docked at
the termination of a ride.
Ex. Ola Pedal, Bounce, Yulu
Peer-to-peer: Users rent, or
borrow bikes from owners.
Ex. Cycle.land
Gives users access to
vehicles as needed, often
renting vehicles on an
hourly or daily basis or
paying monthly dues for
use.
Types of carsharing
include: round-trip,
point-to-point, and
peer-to-peer.
Ex. Zoom Car
Private companies operating
shared vans, where drivers
and riders are linked via
IT-enabled applications.
Although similar to
vanpooling, with microtransit,
drivers are hired by
companies or individuals
directly.
Microtransit covers a
spectrum of operating
modes, from fixed route and
schedules to on-demand and
dynamic routes.
Ex. Shuttl
High-Level Used VehiclesManufacturers Public Transport Shared Mobility
42. Impact of COVID-19 on Indian Urban Mobility by Sam Ghosh 19th July 2020
Public Transport in India: Shared Mobility
Pre-COVID U-Mobility How Does Urban India Commute? Forces at Play Post-COVID Urban MobilityStakeholders
● Frost and Sullivan - There are more than 30 companies in the shared mobility space in India
● Ride-hailing is dominated by Ola and Uber with a combined market share of 90%.
● Ride-sharing has 15 players in India.
● Ola and Uber dominate the intra-city ride sharing.
● French company BlaBlaCar dominates the long distance intercity ride-sharing.
● Carsharing was introduced in India by Zoomcar who is the market leader with more than 70% market
share.
● Two-wheeler sharing market is dominated by few players in bike taxi, rental, and bicycle sharing
categories.
● Major Two-wheeler sharing service providers: Roppen Transportation Services Pvt. Ltd. (Rapido), ANI
Technologies Pvt. Ltd. (Ola Bike), Uber Technologies Inc. (UberMoto), WickedRide Adventure Services
Pvt. Ltd. (Bounce), Vogo Automotive Pvt. Ltd. (Vogo), Bycyshare Technologies Pvt. Ltd. (Mobycy), and
Royalbison Autorentals India Pvt. Ltd. (Royal Brothers).
High-Level Used VehiclesManufacturers Public Transport Shared Mobility
43. Impact of COVID-19 on Indian Urban Mobility by Sam Ghosh 19th July 2020
Pre-COVID U-Mobility How Does Urban India Commute? Forces at Play Post-COVID Urban MobilityStakeholders
Forces at Play
44. Impact of COVID-19 on Indian Urban Mobility by Sam Ghosh 19th July 2020
Pre-COVID U-Mobility How Does Urban India Commute? Forces at Play Post-COVID Urban MobilityStakeholders
Urban
Commuter
Behaviour
Lower Interest
Rates
Work From
Home
Fear of Infection
Reverse
Migration
Lower Crude Oil
Prices
Lower
Purchasing
Power
Lower Asset
Values
Change in
Employment
Types
Availability
Issues
45. Impact of COVID-19 on Indian Urban Mobility by Sam Ghosh 19th July 2020
Pre-COVID U-Mobility How Does Urban India Commute? Forces at Play Post-COVID Urban MobilityStakeholders
Forces at Play: Fear of Infection
● Evidences suggest fear of infection is leading to significantly less use of public transport.
● Commuters are more likely to prefer control over their exposure.
● Avoidance of crowded places may fundamentally change the behavior of urban commuters.
● Ola and Uber Uber suspended ride-sharing services. Commuters may learn to avoid ride-splitting and
ride-sharing services for the long-term.
● Pre-Owned cars are becoming a preferred choice over public transport.
46. Impact of COVID-19 on Indian Urban Mobility by Sam Ghosh 19th July 2020
Pre-COVID U-Mobility How Does Urban India Commute? Forces at Play Post-COVID Urban MobilityStakeholders
Forces at Play: Lower Interest Rates
● Repo Rates are at record lows.
● Lower interest rates can encourage investment on personal vehicles by urban households depending on
employment status.
47. Impact of COVID-19 on Indian Urban Mobility by Sam Ghosh 19th July 2020
Pre-COVID U-Mobility How Does Urban India Commute? Forces at Play Post-COVID Urban MobilityStakeholders
Forces at Play: Work/Study From Home
● The COVID-19 lockdowns induced the companies to adopt Work From Home culture.
● The shift is likely to persist long after the end of lockdowns.
● The pandemic also caused a rapid adoption of digital education along with policy push.
● Adoption of Work From Home and Digital Education means a lower need for urban transit (lower Passenger
Kilometers).
48. Impact of COVID-19 on Indian Urban Mobility by Sam Ghosh 19th July 2020
Pre-COVID U-Mobility How Does Urban India Commute? Forces at Play Post-COVID Urban MobilityStakeholders
Forces at Play: Reverse Migration
● The pandemic due to lockdown caused an ‘exodus’ of migrant workers from urban areas to semi-rural and
rural India.
● The migrants are not likely to come back soon.
● Adoption of Work From Home and Digital Education also enables migrant workers and students to spend
less time in the urban areas.
● The negative economic impact of the lockdowns likely to cause job losses causing further reverse migration.
● The reverse migration is likely to further reduce the need for urban transit (lower Passenger Kilometers).
● Many people may move out of urban areas to adjacent sub-urban areas. This behaviour may positively
impact automobile sales.
49. Impact of COVID-19 on Indian Urban Mobility by Sam Ghosh 19th July 2020
Pre-COVID U-Mobility How Does Urban India Commute? Forces at Play Post-COVID Urban MobilityStakeholders
Forces at Play: Crude Oil Prices
● EIA expects crude oil prices in 2020 and 2021 to remain lower than 2018-19 levels.
● Although, the Indian government is keeping the fuel prices high by charging excess taxes.
● The economic impact of the pandemic* likely to lower demand for fuel for many years.
● It can be expected that crude oil prices will not increase drastically in the foreseeable future.
● Lower fuel prices may encourage vehicle ownership.
*IMF projects the global economy to shrink by 4.9% in 2020 as of June 2020
50. Impact of COVID-19 on Indian Urban Mobility by Sam Ghosh 19th July 2020
Pre-COVID U-Mobility How Does Urban India Commute? Forces at Play Post-COVID Urban MobilityStakeholders
Forces at Play: Purchasing Power
● IMF projects the global economy to shrink by 4.9% in 2020 as of June 2020.
● Job loss is the most severe immediate impact of the COVID-19 crisis according to a survey by the Indian
Society of Labour Economics (ISLE).
● A study shows that 80% of Indians lost Income due to COVID-19.
● Covid-19 crisis may lead to a decline of 5.4% in the per capita income (PCI) of Indians in FY21 to Rs 1.43
lakh
● Lower-income means a drop in demand for urban transport and change in mode-share.
51. Impact of COVID-19 on Indian Urban Mobility by Sam Ghosh 19th July 2020
Pre-COVID U-Mobility How Does Urban India Commute? Forces at Play Post-COVID Urban MobilityStakeholders
Forces at Play: Lower Asset Values
● The pandemic induced economic crisis likely to severely affect the real estate prices.
● As corporates experience earning losses*, the medium-term prospect of the capital markets cannot be very
optimistic even at record low interest rates.
● Lower asset values likely to result in a negative wealth effect causing further lower consumption.
● This is likely to cause a drop in demand for urban transport and change in mode-share.
*Covid-19 impact: Two of every 5 firms log 20% drop in profits
52. Impact of COVID-19 on Indian Urban Mobility by Sam Ghosh 19th July 2020
Pre-COVID U-Mobility How Does Urban India Commute? Forces at Play Post-COVID Urban MobilityStakeholders
Forces at Play: Change in Employment Types
● As companies are uncertain about the future, gig economy/ freelance jobs are on the rise.
● The change in employment type may have various effects on the consumers such as an increased
preference for saving than spending, delaying high-value purchases, etc.
● The change in consumer behaviour due to change in employment type likely to discourage the purchase of
private vehicles.
● As many gig jobs do not require visiting workplace regularly, this will further lower the demand for urban
transport.
53. Impact of COVID-19 on Indian Urban Mobility by Sam Ghosh 19th July 2020
Pre-COVID U-Mobility How Does Urban India Commute? Forces at Play Post-COVID Urban MobilityStakeholders
Forces at Play: Availability Issues
● Many public transport modes face restrictions due to social distancing norms. The commuters are likely to
avoid public transport long after the pandemic.
● Ola and Uber Uber suspended ride-sharing services. Commuters may learn to avoid ride-splitting and
ride-sharing services for the long-term.
● Many urban mobility startups are struggling during the pandemic and some may be out of business.
● The above is likely to shrink the options available to the urban commuters.
54. Impact of COVID-19 on Indian Urban Mobility by Sam Ghosh 19th July 2020
Pre-COVID U-Mobility How Does Urban India Commute? Forces at Play Post-COVID Urban MobilityStakeholders
Post-COVID Urban Mobility
55. Impact of COVID-19 on Indian Urban Mobility by Sam Ghosh 19th July 2020
Pre-COVID U-Mobility How Does Urban India Commute? Forces at Play Post-COVID Urban MobilityStakeholders
Assumptions
● Commuters will prefer to avoid crowded places.
● Shared mobility companies will try their best to create a perception of hygiene and will be able to convince
commuters to some extent.
● We are analysing medium-long term impact.
● Most stakeholders will be able to recognise the commuter behaviour changes and change positioning
accordingly.
● Car Sharing/ 2-wheel Sharing companies will start offering medium-long term lease services.
Assumptions Impact Map Recommendations
56. Impact of COVID-19 on Indian Urban Mobility by Sam Ghosh 19th July 2020
Pre-COVID U-Mobility How Does Urban India Commute? Forces at Play Post-COVID Urban MobilityStakeholders
Fear of
Infection
Lower
Interest
Rates
Work/Study
From Home
Reverse
Migration
Lower
Crude Oil
Prices
Lower
Purchasing
Power
Lower
Asset
Values
Change in
Employment
Types
Availability
Issues
Automobile Mfg *
Bicycle Mfg * ** **
Used Car Dealers
Public Transport ** **
Paratransit
Ride-Hailing ** **
Ride Splitting ** **
Ride Sharing ** **
2 Wheeler Sharing ** **
Carsharing
Microtransit ** **
*Lower crude oil prices will encourage commuters buy motorised options rather than bicycles.
**Perceived financial distress will encourage people opt for low cost options such as bicycles, public transport, ride-hailing etc. over investing in motorised vehicles.
Very
Unfavourable
Unfavourable Neutral / Mixed Favourable Very Favourable
Assumptions Impact Map Recommendations
57. Impact of COVID-19 on Indian Urban Mobility by Sam Ghosh 19th July 2020
Pre-COVID U-Mobility How Does Urban India Commute? Forces at Play Post-COVID Urban MobilityStakeholders
Analysis and Recommendations: Automobile Manufacturers
● The pandemic has brought long-term opportunities to the automobile industry by lowering the threat of
shared mobility to a large extent.
● Fear of infection, lower interest rates, and lower crude prices created a favorable environment for
automobile ownership.
● Depending on the speed of economic recovery, the automobile companies can capture the market for young
commuters (25-35) who were using shared mobility solutions until now.
● As automobiles have become a utility (rather than status symbol) for the target market, the automobile
companies need to stress on utility factors such as fuel efficiency, service, price, etc.
● Real or perceived financial stress means the automobile companies can achieve growth by offering
leasing/rental services with monthly payments.
● Record low-interest rates will enable automobile companies to achieve growth by offering low/no-cost
financing.
Assumptions Impact Map Recommendations
58. Impact of COVID-19 on Indian Urban Mobility by Sam Ghosh 19th July 2020
Pre-COVID U-Mobility How Does Urban India Commute? Forces at Play Post-COVID Urban MobilityStakeholders
Analysis and Recommendations: Bicycle Manufacturers
● The pandemic also brings the opportunity to grow and take market share from public transport and shared
mobility.
● Premium bicycles represent an alternative to more expensive motorised options.
● Bicycle Manufacturers should seek the help of city authorities in creating dedicated bicycle lanes.
● To compete with bike-sharing, Bicycle Manufacturers should highlight that bike ownership presents better
control over exposure and hygiene.
Assumptions Impact Map Recommendations
59. Impact of COVID-19 on Indian Urban Mobility by Sam Ghosh 19th July 2020
Pre-COVID U-Mobility How Does Urban India Commute? Forces at Play Post-COVID Urban MobilityStakeholders
Analysis and Recommendations: Used Car Dealers
● Fear of infection, lower interest rates, and lower crude prices created a favourable environment for
automobile ownership.
● Like automobile companies, depending on the speed of economic recovery, the used vehicle dealers can
capture the market for young commuters (25-35) who were using shared mobility solutions till now.
● As used cars are more affordable, they are more attractive to utility seeking young commuters.
Assumptions Impact Map Recommendations
60. Impact of COVID-19 on Indian Urban Mobility by Sam Ghosh 19th July 2020
Pre-COVID U-Mobility How Does Urban India Commute? Forces at Play Post-COVID Urban MobilityStakeholders
Analysis and Recommendations: Public Transport
● The demand for public transport is likely to be low in the foreseeable future.
● Financial stress may force some to use public transport but job losses and work from home may lower the
demand further.
● Public transport companies should re-evaluate growth plans, explore alternative ways of asset utilisation
and optimise transport routes.
Assumptions Impact Map Recommendations
61. Impact of COVID-19 on Indian Urban Mobility by Sam Ghosh 19th July 2020
Pre-COVID U-Mobility How Does Urban India Commute? Forces at Play Post-COVID Urban MobilityStakeholders
Analysis and Recommendations: Ride Hailing, Splitting and Sharing
● These services are severely getting impacted by the fear of infection.
● Lack of control over the exposure and hygiene is a major concern for the commuters.
● Although, lowering purchasing power means people avoiding public transport with a lower budget are likely
to opt for these services.
● The pandemic may fundamentally restrict the growth of this sector.
● Companies in this sector should look for alternative revenue sources.
Assumptions Impact Map Recommendations
62. Impact of COVID-19 on Indian Urban Mobility by Sam Ghosh 19th July 2020
Pre-COVID U-Mobility How Does Urban India Commute? Forces at Play Post-COVID Urban MobilityStakeholders
Analysis and Recommendations: 2-Wheeler and Car Sharing
● Though the fear of infection also may restrict the use of these services, 2-wheeler and car rentals are
preferred over public transport and shared mobility as it offers better control over exposure especially
longer-term rentals.
● Although, there is a skill barrier as many people may not know riding 2-wheelers and driving a car.
● These companies should offer longer term leases and emphasise the sanitisation efforts.
Assumptions Impact Map Recommendations
63. Impact of COVID-19 on Indian Urban Mobility by Sam Ghosh 19th July 2020
Pre-COVID U-Mobility How Does Urban India Commute? Forces at Play Post-COVID Urban MobilityStakeholders
Analysis and Recommendations: Microtransit
● Like public transport, the demand for Microtransit is likely to be low in the foreseeable future.
● Financial stress may force some to use these services but job losses and work from home may lower the
demand further.
● Microtransit companies should re-evaluate growth plans, explore alternative ways of asset utilisation and
optimise transport routes.
Assumptions Impact Map Recommendations
64. Impact of COVID-19 on Indian Urban Mobility by Sam Ghosh 19th July 2020
Thank You