Radio Cabs Market - India

November 2009

Executive Summary
Radio cabs market in India is valued at INR XX bn for 20- The market is expected to double every year for the next Y years The current fleet size is about z across India Radio cabs market is in a nascent stage with huge demand supply gap Operators are expanding their operation in metros as well as tier II cities Increasing share of wallet for transportation in India Average length of trips in cities across India Huge potential for radio cabs business in many cities Radio cabs provide a good advertising platform Government regulations and initiatives Company 1 is the largest player with a fleet size of U cabs Competition is yet to grow with huge market potential across India At present market is dominated by three major players

Market Overview

Trends & Characteristics

LE P M A S
Company 2 Company 4 Company 5

Competition
Company 1 Company 3 Company 5

Major players in Radio Cabs market - India (fleet size)

RADIO CABS MARKET INDIA.PPT

Introduction Market Overview Business and Revenue Model Trends & Characteristics Competition Key Developments

RADIO CABS MARKET INDIA.PPT

Radio cabs market in India is expected to double every year for the next two years
Market overview
Radio cabs market is valued at INR XX bn for 20-- and is expected to reach INR YY bn by 20- The fleet size across India is currently about p which is expected to cross q by the end of 20--

Market Size & Growth

Value INR bn
30 20 10 0

Volume 000s
30

Round the clock availability, transparent fare meter, ease of booking, safety and customer service are the key aspects of this business Radio cabs growth relies on development of IT infrastructure like captive call centres and taxi management software solutions

LE P M A S
000s
100 80 60 40 20 0

b% a% w v
0 20

z
10

x 2011 2009

y 2010 2011

2009

2010

Future Demand Supply Gap

n

Many cities in India have on-call cabs with radio communication devices, but only cabs/ taxis equipped with GPRS monitors and two-way communication systems with the central reservation centre are referred to as radio cabs

m l Current fleet Demand-supply Market Potential gap

Source: RADIO CABS MARKET INDIA.PPT

Revenues are generated majorly from fare and partially through advertising and branding options
Revenue Model

Although, the Radio Cab fares are slightly higher than that of the normal taxis, its comfort and reliability guarantee commuters interest in preferring Radio cabs over regular taxis

E PL M SA
Fare Flag down fare
INR A1 for first B1 km INR A2 for firsB2 km INR A3 for first B3 kms INR A4 for first B4 kms

Revenue Model

Radio Cabs due to its luxurious advantages reach out to a niche audience commuting to and from airports, railway station, offices etc. Thus, using Radio cabs as an advertising platform has been looked upon by many advertisers

Advertising Revenue
As decided by the Radio Cab Company. NOC from the regional traffic police office and permissions from the state transport authorities is required

As decided by the State Transport Authority of the region

City
City 1 City 2 City 3 City 4
Source:

Subsequent km
INR C1 INR C2 INR C3 INR C4

Waiting Charges
INR D1/hr INR D2/ E2 mins INR D3/ E3 min INR D4/ E4mins

Night Charge
F1% extra F2% extra F3% extra F4% extra

Branding Options
Option 1 Option 2 Option 3 Option 4

RADIO CABS MARKET INDIA.PPT

Trends & Characteristics - Summary

Increasing share of wallet for transportation in India

Average length of trips in cities across India

Trends & ` Characteristics

Huge potential for radio cabs business in many cities

Radio cabs provide a good advertising platform

Government regulations and initiatives

RADIO CABS MARKET INDIA.PPT

Competition is yet to grow with huge market potential to tap in the coming years
Competition
Low cost auto-rickshaws and black & yellow taxis are the biggest competitors to the radio cab business in India Company 1 has the biggest fleet size nationally with x cabs on the roads

Market share
100 100

Radio Cab companies provide training to their drivers to enhance their customer interaction skills thus guaranteeing better quality of service

Competition is expected to flourish city wise with different players planning to dominate revenues in the cities they operate in Hyderabad is crowded with as many as u players while Delhi has almost v radio cabs service providers

LE P M A S
Company 1 Company 2 Company 3 Others

a1% a2%

b1% b2% c1% d1% In terms of Value

c2% d2% In terms of Volume

With business travellers identifying quality of service by the brand name, a national level presence could add to the growing revenues of the market leaders

Source: RADIO CABS MARKET INDIA.PPT