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Online Taxi Services Market in India 2020

Online Taxi Services Market in India 2020

  • December 2020
  • 57 pages
  • ID: 5881870
  • Format: PDF
  • Netscribes (India) Pvt. Ltd.


Table of Contents

Online taxi operators are digital intermediaries that connect passengers with cab drivers, either through a mobile platform, or global positioning system (GPS)-enabled applications, or by using radio signals. In India, the taxi market in India is comprised of both organized as well as unorganized taxi services. The organized taxi services or the online taxi services offer mobility services to their customers via a mobile platform connected through the Global Positioning System (GPS) or General Packet Radio Service (GPRS) system.

Market insights:
The organized taxi services market in India is dominated by the online taxi services segment. The online taxi or radio taxi service providers in the country operate either as aggregators or as radio cabs, based on their tracking feasibility. In 2019, the aggregator-based model or app-only based model of online taxi services, contributed more than 95% of the revenue generated from the overall India online taxi services market. The online taxi services market in India was valued at INR 30.72 Bn in FY 2020 and is expected to expand at a compound annual growth rate (CAGR) of ~12.93% during the FY 2021 – FY 2025 period, to reach a value of INR 55.15 Bn by FY 2025. Increasing smartphone penetration in India coupled with availability of high-speed internet connectivity and rising investments in India online taxi market by the foreign institutional investors (FII) are some of the major factors that are currently driving the growth of the market. However, government’s interventions in the online cab service operations, imposition of Goods and Services Tax (GST) on respective rides, and a demand-supply gap in the market are disrupting a stable growth in the online taxi services market in India.

COVID-19 impact analysis:
The outbreak of the pandemic, followed by a long-term nationwide lockdown, has had a substantial impact on the online taxi services market in India. During the lockdown period, the demand for cab services reduced drastically. The striking reduction in demand for online cab services during this period can be mainly attributed to the implementation of remote work policy and restriction policies on travelling. However, the market situation improved to a considerable extent after the fourth-phase withdrawal of the lockdown. The number of monthly rides served by the existing online cab market players improved from ~1.97 Mn in May 2020 to ~30 Mn in October 2020.

Competition analysis

India online taxi services market is mainly driven by the two giant companies; ANI Technologies Private Limited (Ola Cabs) and Uber India Systems Private Limited (Uber India). In FY 2020, almost 74.65% of the total revenue generated by the online taxi services market in India was attributed to Ola Cabs, whereas, Uber India held a share of ~20.07% in the market. Other players operating in the market include Meru Mobility Tech Private Limited, Mega Cabs Private Limited, and Carzonrent (India) Private Limited. As of 2020, Ola Cabs is operational in around 130 cities in India, whereas, Uber India operates in around 55 cities

Companies covered
• ANI Technologies Private Limited
• Carzonrent (India) Private Limited
• Mega Cabs Private Limited
• Meru Mobility Tech Private Limited
• Savaari Car Rentals Private Limited
• Uber India Systems Private Limited

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