Project report for Ola service
Project report for Taxi car is as follows
Taxi market has gained prominence over last 2-3 years, in the backdrop of entry of app based aggregators which has not only disrupted auto-rickshaw and traditional taxi market but also forced automotive OEMs to revise their growth and marketing strategies.A report released by ICRA stated that the Indian passenger vehicle industry is likely to ride on the strong growth potential of domestic taxi segment in the near term, whereas medium to long term growth will be supported by low car penetration level and increasing income level. “Considering strong demand and increasing penetration of such players in smaller town, Indian taxi market is poised for robust double digit growth over next 2-3 years. In FY2016, fleet sales (including cab aggregators) accounted ~9 per cent of Indian PV sales, which is expected to reach 15 per cent-17 per cent level by FY2020,” stated the report. Indian taxi market is still in nascent stage, with huge scope for growth given low car penetration level and poor public infrastructure. OEMs have also realized the market potential and have dedicated sales team to cater fleet operators. The entry of aggregators like Ola and Uber has changed competitive dynamics of taxi market which till now has largely been fragmented and has lacked bargaining power with OEMs with even larger organized fleet operators typically having less than 500 cars. However, the aggregators like Ola and Uber have over 25,000 cabs in NCR market alone. Consequently, this segment within PV industry now enjoys a significant clout, with some OEMs setting up dedicated team to address aggregator market,” observed the report. The rise of taxi segment however is expected to the hit the second car purchase in India in the near term, only in the medium term, the subsequent replacement demand for taxis will offset such a loss.
Market potential & Strategy
The taxi market in India is estimated at $9 billion; the organized sector constitutes around 6% revenue share of the overall market. The taxi market in India is highly fragmented and unorganized, The unorganized market is constituted of individual car owners and agencies which operate in one or few cities,Owned vehicles segment includes pure-play car rental companies (e.g. Zoomcar) and players like Carzonrent and Meru,Aggregators are a new phenomenon driven by rise of start-ups like Ola & Uber.
The first time car buyers accounts for 40-45 per cent of Indian car market, and given low car penetration in India, they are likely to remain a potent force. Similarly, replacement segment is also expected to grow at robust pace given shortening replacement cycle of a car in Indian market. However, cab aggregator and taxi market poses real challenge to the additional car buyer segment.Considering that customer segment already has a car, and can rely on taxi for short run/limited usage. Given increasing traffic woes, there is also a customer segment which will shift towards taxi usage due to additional comfort of chauffeur driven car without paying out for driver salary. By providing better customer service and registering with the aggregator can make the business so viable.