Online Taxi Services Market in India 2019
- January 2020 •
- 58 pages •
- Report ID: 5881870 •
- Format: PDF
With the transition from the radio signals-based conventional tracking system to the GPS or GPRS-enabled system, the organized taxi market in India witnessed a momentous growth. In FY 2019, the organized taxi market held a share of ~11.5% of the total revenue generated by the overall taxi market in India. The online taxi services market in India was valued at INR 29.75 Bn in FY 2019. Further, the market is anticipated to expand at a compound annual growth rate (CAGR) of ~16.60% to reach a sales value of INR 61.59 Bn by 2024. Rise in smartphone penetration in India, improved availability of high-speed internet connectivity, increasing investments in the online taxi market by the foreign institutional investors (FII) and swelling disposable income are the major factors that are driving the growth of the market. However, the imposition of goods and services tax (GST), shortage in the supply of online cab services as a consequence of the reduction in drivers’ incentives, surge in ride fares and extended wait-time for passengers, and the growing popularity of affordable ride-sharing services like SRide and Quick Ride are some of the factors impeding market growth. With the implementation of the new policy of the Indian government, that does not allow commercialization of ride-sharing services, the growth of the online taxi services market in India is expected to rebound.
The online taxi services market in India is mainly driven by two major players – ANI Technologies Private Limited (Ola Cabs) and Uber India Systems Private Limited (Uber India). In FY 2019, Ola Cabs accounted for almost 72.44% of the total revenue generated by the online taxi services market in India, whereas, Uber India held a share of ~21.01%. Other players in the market include Meru Mobility Tech Private Limited, Mega Cabs Private Limited and Carzonrent (India) Private Limited, and together they held ~6.55% of the overall market in FY 2019. The transition from the radio signal-based tracking system to GPS and GPRS-based tracking system was introduced by the market leader, ANI Technologies Private Limited. The company’s extensive geographical reach within India (152 cities), coupled with its wide range of services available for customers belonging to different income profiles has helped the company to fetch such a high market share. Large scale investments by big private equity firms on major players of the market and introduction of new customer-friendly features in their applications by the companies are anticipated to further accelerate their market growth.
• 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