Analysis of the taxi service market in India
The relevance of research
The functioning of taxi services has changed the mechanism for distributing orders, while increasing their efficiency due to the access of all orders to all available cars. In addition, the optimization of internal costs for dispatching and call centers, as well as the reduction of downtime, idling, and gasoline costs contributed to a reduction in the cost of travel.
Purpose of the study
Analysis of the state of the taxi services market, assessment of the market size, analysis of competitors, as well as identification of factors affecting the taxi services market
Content
Part 1. Overview of the Indian Taxi Service Market
1.1. Definition and Characteristics of the Indian Taxi Services Market
1.2. Dynamics of the volume of the Indian taxi services market, 2015-2019
1.3. Market structure by type of service provided in India
1.4. The structure of the taxi services market in the Union Territories
1.5. Assessment of current trends and development prospects of the studied market
1.6. Assessment of factors affecting the market
1.7. Analysis of sectoral indicators of financial and economic activity
Part 2. Competitive Analysis in the Taxi Service Market in India
2.1. Major players in the market
2.2. Market shares of the largest competitors
2.3. Profiles of major players
Part 3. Analysis of the consumption of services for ordering a taxi
3.1. Estimation of the volume of consumption of services for ordering a taxi per capita
3.2. Market Saturation and Estimated Market Potential in India
3.3. Description of consumer preferences
3.4. Price analysis
Part 4. Assessment of factors of investment attractiveness of the market
Part 5. Forecast for the development of the taxi services market until 2024
Part 6. Conclusions on the prospects of creating enterprises in the study area and recommendations for current market operators
Research excerpt
Part 1. Overview of the Indian Taxi Service Market
1.1. Definition and Characteristics of the Indian Taxi Services Market
Consider the characteristics and features of the Indian market for taxi services.
The market of services for ordering a taxi in this study is understood as a set of enterprises that play the role of …
Taxi service is an IT platform for placing orders for the transportation of passengers or luggage and transferring them to drivers registered in the system through a mobile application.
The taxi service market in India is quite…
The emergence of services for ordering a taxi made it possible to unify ..
The main types of services provided by taxi services, in accordance with standard tariffs, developed depending on the price and car models, are presented in the table. At the same time, the table does not include tariff rates due to their regional differences and the selected market operator. Tariff rates of the largest market operators will be reflected in paragraph 3.4 of this study.
As a rule, each tariff provides for additional services in the form of …
The Indian market for taxi services is characterized by the following features: ...
1.2. Dynamics of the volume of the Indian taxi services market, 2015-2019
The taxi market in India in the last decade ..., becoming ... Significant growth of the taxi market was due to the emergence and development of ... Based on the data on the volume of the taxi market presented by ..., the volume of the taxi market in 2019 amounted to ... billion Rs., ... relative to 2015 by …%.
Diagram 1. Dynamics of the taxi market volume, 2015-2019, billion Rs.
At the same time, according to …, in the structure of the economy of the taxi market in 2019, the premium of aggregators formed at the expense of the commission that drivers pay for using the taxi ordering service accounts for about …%. Thus, the total volume of the premium of all operators of the taxi services market will form the volume of the taxi services market.
Let's consider the dynamics of the volume of the Indian market of services for ordering a taxi. According to GidMarket's calculations based on the data of …, the volume of the taxi ordering services market in 2019 amounted to … billion Rs., having increased by …% compared to 2018.
Throughout the analyzed period, there has been an increase ... Annually, the drivers of the increase in the market volume were: ... In addition, other factors that have a positive impact on the taxi ordering services market are: ...
1.3. Market structure by type of service provided in India
The structure of the taxi services market by type of services provided includes services provided within the most popular current tariffs for which demand was shown in 2019. According to GidMarket, based on ..., the most popular when ordering a taxi is the tariff ... Its share in the total volume of rendered services amounted to about …%. This fare, as a rule, is chosen for making … When choosing this fare, the cost of the trip will be ... About …% falls on orders at the fare ...
The share of others accounts for about …% of services rendered by ordering a taxi.
1.4. The structure of the taxi services market in the Union Territories
The structure of the taxi services market by federal districts shows that the leading position is occupied by … the Union Territories with a market share of …%, in second place is … the Union Territories with a market share of …%, in third place is … Such a distribution of services for ordering a taxi across the union territories indicates that the bulk of users are concentrated in ...
According to the studies of … the leaders in the use of services for ordering a taxi among cities are …, … and their agglomerations, their share in the overall market structure is about …%, the share of other million-plus cities is about …%. At the same time, in cities with a population of more than 500 thousand people. A relatively large market share is occupied by...
Diagram 4. The structure of the provision of taxi services in India by Union Territories, 2019, %
1.5. Assessment of current trends and development prospects of the studied market
Key trends in the Indian taxi services market include:…
Among the prospects of the analyzed market are: ...
1.6. Assessment of factors affecting the market
Let's consider the main factors influencing the market of services for ordering a taxi and, accordingly, the demand and income of market operators.
Economic
Dynamics of India's GDP
The dynamics of India's GDP is an indicator of the country's economic development. GDP has an impact on the development of all sectors and markets of the economy, as well as the level of effective demand of the population.
In 2012-2015 there was a gradual decrease in economic growth rates until reaching negative values in … (the fall amounted to …% compared to 2014) This trend was accompanied by a corresponding ... Starting from 2016, the Indian economy entered the stage of ... (January-September), the GDP growth rate was set at the level of …%. The annual GDP growth rate at the end of 9 amounted to …%. The main factors behind the low growth rate of the Indian economy in 2019 are ...
...
Social factors
...
Environmental factors
...
Technological factors
...
Political and legal factors
...
Table 2. STEP-analysis of factors influencing the market of services for ordering a taxi
According to the results of the STEEP-analysis, macro-environment factors have a greater influence on the taxi ordering services market. Two of the considered groups of factors have an impact on the development of the market. Three groups of factors...
A number of political and legal factors negatively affect the development of the taxi ordering services market: …
A number of economic factors have a positive impact on the taxi service market: …
1.7. Analysis of sectoral indicators of financial and economic activity
According to GidMarket, at the end of 2019, the gross margin of the taxi service industry amounted to …%, which is … the level of similar financial ratios in the Indian economy as a whole.
… gross margin of the taxi services industry during 2015-2019. testifies to...
At the same time, the profitability of profit before tax in the taxi services industry .. relative to all sectors of the Indian economy in 2015-2016, .. - in 2017-2019.
Profitability before tax … by … times in 2019 compared to the same period in 2015 and amounted to …%. ... a trend.
Diagram 12. Profitability before tax (profit of the reporting period) in the field of taxi services in comparison with all sectors of the Indian economy, 2015-2019, %
The value of the current liquidity ratio in 2015 of the taxi services industry is ..., which indicates ... In 2016-2018. liquidity ratios are within the optimal range of 1,5-2,5. In 2019, the current liquidity of the industry is …, which indicates …
In 2019, compared to the same period in 2015, the current liquidity of the taxi services industry ...
For Indian companies, the normative value of the absolute liquidity ratio is within Kal > 0.2-0.5. In the industry of services for ordering a taxi in 2015-2017. the indicator of absolute liquidity is much … normative, which may signal about … During the analyzed period from 2015-2019. absolute liquidity ratio … up to … times in 2019, falling within ...
Business activity (average term of receivables turnover) in the field of taxi services in 2015-2017 fast enough… which is… a trend. As of 2019, the value of this financial ratio is … day days, while remaining all ...
Indicators of financial stability (security of own working capital) in the industry of taxi services in 2015-2018 … similar indicators of financial stability in all sectors of the Indian economy (with the exception of …). In addition, these indicators are significantly ... of the normative value (10%), which indicates ...
In general, the analysis of sectoral financial ratios of the taxi services industry shows …
Part 2. Competitive Analysis in the Taxi Service Market in India
2.1. Major players in the market
The taxi service market in India is characterized by … a level of concentration (… the market, the Herfindahl-Hirschman index is HHI =…, 1800 < HHI < 10000 – …concentrated market).
The largest operators in the Indian taxi services market include …
2.2. Market shares of the largest competitors
Let's determine the market shares of the largest competitors of services for ordering a taxi. There are operators in the Indian market for taxi services using …
According to GidMarket, the leader of the taxi services market is the united company … with a share of …%. In second place is the taxi service … with a market share of …%. Third place …
Other operators account for …% of the taxi services market in India.
2.3. Profiles of major players
""...""
...
Table 6. Basic information about participant No. 1 of the market for taxi services
...
According to GidMarket, the total revenue of the TOP-5 largest taxi service market operators in 2019 amounted to … billion Rs. For the period 2015-2019 the revenue of the five largest operators of the Indian taxi service market grew ... At the same time, the growth rate of the revenue of the largest market operators relative to the overall dynamics of the market volume in current consumer prices is almost ..., which is due to ...
Part 3. Analysis of the consumption of services for ordering a taxi
3.1. Estimation of the volume of consumption of services for ordering a taxi per capita
Estimation of per capita consumption of services for ordering a taxi in India was made by GidMarket on the basis of …
As you can see in the diagram, the consumption of taxi ordering services is increasing ... during 2015-2019. from … to … Rs. per person per year.
Considering that in 2015 the cost of taxi services per person in India was … Rs. per year, and by 2019 increased to … Rs. per year, then in the structure of costs for taxi services, the commission of services for ordering a taxi increased from …% to …%.
Taking into account the average commission of the service for ordering a taxi about …%, we can conclude that if in 2015 among the entire set of taxi orders to order with the help of a specialized service only every … trip accounted for, then in 2019 – almost every …
In this case, the main factors of influence include: ...
3.2. Market Saturation and Estimated Market Potential in India
The market potential for taxi services is estimated by GidMarket experts to be no less than “…%” of the existing market volume, or more than … billion Rs. in 2019 prices. At the same time, one of the conditions for market growth is … Achieving the market potential and its qualitative development is constrained by …
...
3.3. Description of consumer preferences
The emergence and development of services for ordering a taxi influenced the increase ... Based on the study ..., for the period 2018-2019. … the population prefers to travel by taxi at least once a month, … the population uses taxi services several times a week and more often (almost daily). About ... the population began to use taxis more often.
Consumer preferences vary depending on…
Based on the research data … about …% of taxi ordering service users prefer to order a taxi for ... About …% of users – to travel to the airport / train station, the remaining …% - use the service to order a taxi both for trips around the city and to the airport/train station.
On public holidays (New Year, May holidays) the demand from service users is … by …% on average. These days they prefer...
Most of the users of services for ordering a taxi make taxi trips to …
According to the results of the research … the choice of taxi service is most influenced by such factors as … (for …% of users), … (for …% of users), …
Chart 20. Factors that have the greatest influence on the choice of taxi ordering service by users, 2019, %
3.4. Price analysis
For three of the main taxi services compared, the size of the driver's commission paid to the service does not depend on the tariffs: ... At the same time, the lowest percentage of the driver's commission is provided in the taxi order service ""…"" - ...%, the highest - ... ( …%). For two services for ordering a taxi - ... the driver's commission varies depending on ... At ""..."", the size of the driver's commission depends on his status and set of ...
The dynamics of prices for taxi services is determined by the general level of …, the level of ... At the end of 2019, the highest price growth was recorded in … Union Territories (…%), … Union Territories (…%), ...
In general, in India during 2015-2019. there is … a downward trend … from …% to …%, and, accordingly, to a slowdown …
Of all the administrative centers compared to the Union Territories, according to Rosstat, the highest level of average prices for taxi services was recorded in … (… Rs./10 km), the lowest - in … (.../10 km). In addition, the highest average prices were recorded in …
...
Table 15. Prices for the services of the main operators of the taxi services market in accordance with standard tariffs, in the administrative centers of the Union Territories, Feb. 2020, Rs.
Part 4. Assessment of factors of investment attractiveness of the market
… the factors of the investment climate in the market of services for ordering a taxi dominate over ... A comprehensive assessment of the factors of investment attractiveness is … points - … the investment climate.
The most significant negative factors. …
The most significant positive factors. …
Part 5. Forecast for the development of the taxi services market until 2024
...
Part 6. Conclusions on the prospects of creating enterprises in the study area and recommendations for current market operators
...
Diagrams
Diagram 1. Dynamics of the taxi market volume, 2015-2019, billion Rs.
Diagram 2. Dynamics of the volume of the market for taxi services, 2015-2019, billion Rs.
Diagram 3. Structure of the market for taxi services by types of services provided, 2019, %
Diagram 4. The structure of the provision of taxi services in India by Union Territories, 2019, %
Diagram 5. Dynamics of India's GDP, 2012-2019, % to the previous year
Chart 6. Monthly dynamics of the US dollar against the rupee, 2015-2019, Rs. for 1 US dollar.
Diagram 7. Dynamics of the average price of a taxi ride, 2014-2019, Rs.
Diagram 8. Dynamics of the share of transport services in the structure of paid services to the population of India, 2014-2019, %
Diagram 9. Population dynamics in India, as of 01 Jan. 2012-2020, million people
Diagram 10. Dynamics of real money income of the population of India, 2012-2019, % to the previous year
Chart 11. Number of mobile app installs, Feb. 2020, pcs.
Diagram 12. Profitability before tax (profit of the reporting period) in the field of taxi services in comparison with all sectors of the Indian economy, 2015-2019, %
Diagram 13. Current liquidity (total coverage) in the field of taxi services, 2015-2019, times
Diagram 14. Business activity (average receivables turnover period) in the field of taxi services, 2015-2019, days days
Diagram 15. Financial stability (security of own working capital) in the field of taxi services in comparison with all sectors of the Indian economy, 2015-2019, %
Diagram 16. Shares of the largest competitors in the market of services for ordering a taxi, 2019, %
Diagram 17. Dynamics of the total revenue of the largest taxi service market operators (TOP-5) in India, 2015-2019, billion Rs.
Diagram 18. Volume of consumption of services for ordering a taxi per capita, 2015-2019, Rs./person
Diagram 19. Preferences of users of services for ordering a taxi, depending on the type of trip, 2019, %
Chart 20. Factors that have the greatest influence on the choice of taxi ordering service by users, 2019, %
Diagram 21. Forecast of the volume of the market for taxi services in 2020-2024, billion Rs.
Tables
Table 1. The main types of services provided by services for ordering a taxi, based on standard tariffs
Table 2. STEEP-analysis of factors influencing the market of services for ordering a taxi
Table 3. Gross margin of the taxi service industry in comparison with all sectors of the Indian economy, 2015-2019, %
Table 4. Absolute liquidity of the taxi services industry in comparison with all sectors of the Indian economy, 2015-2019, times
Table 5. Main companies participating in the market of services for ordering a taxi, 2019
Table 6. Basic information about participant No. 1 of the market for taxi services
Table 7. Basic information about participant No. 2 of the market for taxi services
Table 8. Basic information about participant No. 3 of the market for taxi services
Table 9. Basic information about participant No. 4 of the market for taxi services
Table 10. Basic information about participant No. 5 of the market for taxi services
Table 11. Basic information about participant No. 6 of the market for taxi services
Table 12. Taxi service commission, %
Table 13. Consumer price indices for taxi services in India, 2015-2019, %
Table 14. Average prices for taxi services in the administrative centers of the Union Territories, Feb. 2020, Rs./10 km
Table 15. Prices for the services of the main operators of the taxi services market in accordance with standard tariffs, in the administrative centers of the Union Territories, Feb. 2020, Rs.
Table 16. Evaluation of factors of investment attractiveness of the market for taxi services
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