Radio Taxi Market in India - A case study of Delhi

Taxi Market in India
- A Case Study of Delhi
Prepared by
Valoriser Consultants
Tel: +91-11-25546049 | Mobile: +91-9958835533
Email: Info@valoriserconsultants.com| Website: www.valoriserconsultants.com
Photo ©rtaxiamanecer

2© 2015 Valoriser Consultants Publication
Taxi Market Across the World
City Population
Areas
(Sq. Km)
No. of Cabs
Population to
Taxi Ratio
New York 8,175,133A 790.0 57252C 104
London 7,750,000 1,572.1 22,500B 107
Paris 2,257,981 105.0 17,137B 131
Tokyo 13,190,000 2,188.0 47,236 131
Singapore 5,310,000 710.0 28,210 188
Seoul 10,140,000 605.2 70,000B 139
Delhi 16,787,941B 1,492.0 53,739 312
Tehran 7,804,000 686.3 77,962 109
Sao Paulo 11,320,000B 1,523.0 33,000 343
Note: Year Book - A. 2010 / B. 2011 / C. 2013

Taxi Market in India
• In the absence of good quality public transport system, Taxi plays an
important role as mobility options in India.
• According to Road Transport Yearbook, there are 2.3 million registered
taxis plying across different states in India. This number includes all types
of taxis.
• There are around 500,000 -600,000 cabs offering taxi services in
organized segment.
• It is estimated that total market size is more than $9 billion and only 6-7%
is organized.
• Taxi market has witnessed a phenomenal growth in last 3-4 years and is
currently growing at 15-20% per year.
• New technology companies which are working on Aggregation model is
experiencing a growth of 30-40% per year.

Market Segment – Trip Type Vs. User Type
Inter city Point to Point
(Traditional 8 hrs/80 kms or 4 hrs
40/kms)
Trip Type
Airport Drop
(Traditional One side Trip –
Pickup or Drop)
Intra city – Daily Usage
(Traditional 250 kms per day or
Destination based)
User Type
Corporate Business
Travel – nearly 70% of
the business
Individual Personal
Leisure Travel –
(Retail)
Travel Agencies and
Online Travel
Aggregators
• New market segment is emerging in India where commuters are
using taxi as «Personalized Public Transport» and hiring vehicle
for short distances on daily basis.
• Radio Taxi / Online Aggregator / Online Affliators are some of new
concepts which are serving this segment. It is expected that this
segment will grow at the rate of 20-25% in coming years.

Key Cities in India – Potential Taxi Market
The following are the cities where the existing operators are running cab
service or looking to launch in future:
1. Delhi and NCR
2. Mumbai
3. Pune
4. Hyderabad
5. Bangalore
6. Jaipur
7. Chennai
8. Ahmedabad
9. Kolkata
10. Goa
11. Amritsar
12. Chandigarh
13. Lucknow
14. Agra
15. Indore
16. Ludhiana
17. Trichy
18. Kochi
19. Kozhikode
20. Trivandrum
The rationale for selecting these cities:
a) Big Cities in India
b) Radio Cabs operator are operating
c) High Airport Passenger Growth
ListofCitieswith
HighGrowth
Potential

Key Taxi Operators in India* – Presence
* Include Major Cities only
Companies Delhi Mumbai Pune Chennai Bangalore Hyderabad Jaipur Ahmedabad Kolkata Chandigarh Amritsar Ludhiana Goa Vadodara Surat Mysore Nagpur
Ownership
Meru Cab            
Mega
Cabs
      
Easy Cabs    
    
Aggregator
                
Taxi For
Sure
             
UBER             
Savaari *         

Airport Traffic – Domestic and International
6.7
7.3
2.9
1.4 1.2 1.2 0.9 1.2 0.8 0.4 0.2
11.6
9.9
4.4
2.9 2.5 2.1 2.0 1.9 1.6
0.8 0.8
Delhi Mumbai Chennai Kochi Bengaluru Hyderabad Kozhikode Trivandrum Kolkata Ahmedabad Trichy
2006-07
2012-13
Growth in International Passenger Traffic – Key Airports, 2006-13
(Number in Million)
13.8
14.9
6.9
0.5 0.6
4.5
0.2 0.1 0.2
1.6
0.1
22.8
20.3
9.5 8.7 8.3
6.2
4.0 3.2 2.9
2.0 1.6
Delhi Mumbai Bengaluru Kolkata Chennai Hyderabad Ahmedabad Pune Goa Kochi Jaipur
2006-07
2012-13
Growth in Domestic Passenger Traffic – Key Airports, 2006-13
(Number in Million)
Source: Airport Authority of India

Taxi Market in India – Competitive Landscape
Sr.
No.
Company
Name (Brand)
No. of
Cities
No. of
Cabs
No. of
Booking Daily
Booking through Payment via
Credit CardOn Call Website Mobile App
1 Meru Cab 20 15,000 35,000 20% 10% 70% 35%
2 Mega Cabs 07 3,500 15,000 60% 20% 20% --
3 Easy Cabs 04 3,500 15,000 60% 20% 20% --
4 TAB Cab 01 4,000 14,000 65% 10% 25% --
5 Ola Cabs 92 100,000 -- 5% 5% 90% 45-50%
6 Taxi For Sure 44 15,000 40,000-45,000 10% 5% 85% 35-40%
7 Uber 18 -- -- -- -- 100% 100%
8 Savaari 56+ 3,000 -- 35% 65% -- --
9 TaxiGuide 76+ -- -- 20% 80% 0% --
10 Fast Track* 26 12,000 35,000 90% 10% 0% --
Savaari and TaxiGUIDE is operating in Garage-to-Garage segment, which involve outstation travel.
* Fast Track is working on affiliation model. Major Cities are only 5 – Bangalore, Chennai, Hyderabad, Pune and Kolkata

Taxi Market – A Case Study of Delhi
Photo @ calloncab

Types of Taxi
Radio Taxi Taxi
Tourist TaxiEconomy Radio Taxi

Number of Taxis in Delhi
2005-08 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 Total
Cab Service 1,922 104 148 189 73 1,079 1,204 4,880
Local Taxi 887 449 521 173 492 481 95 7,209
Radio Taxi 680 2,142 2,235 1,011 188 313 565 6,428
Tourist Taxi 13,022 2,722 3,926 5,045 4,828 5,350 4,648 35,417
Economy Radio Taxi 1,463 0 962 2,115 901 318 381 4,436
Total 17,974 5,417 7,792 8,533 6,482 7,541 6,031 58,370
There are 58,370 taxis are registered in Delhi as on March 31, 2015,
with a Life of Taxi is Eight (8) years only.
CNG*
43%
Diesel
53%
Petrol
4%
80% of Tourist Taxi are running on Diesel and around 6% are on Petrol.
* CNG Vehicles include CNG, CNG/Petrol, Petrol/CNG, Ret. CNG/Pet, Ret. CNG Kit
100% Radio Taxi Fleet is running on CNG, 30% is CNG only.
100% Local and Economy Radio Taxi are also running on CNG.
There is slowdown in the registration of Radio Taxi in last 2 years.
As per law, City operation should be done by CNG Taxi only.

Areas
Population
(Thousands)
5,024 876 -- 725 6,200 3,950 887
Demand Trend – Delhi Taxi Demand Point
34%
21%
16%
12%
10%
4% 3%
South Gurgaon Airport /
Dwarka
Central West East North
According to booking trends of major Taxi operators, South Delhi has
the highest demand for Taxi Service.
The key
demand
point for
Taxi
Service in
Delhi are:

Regulatory Structure in Delhi
Sr. No. Type Registration
1 Economy Radio Taxi DL1R T
2 Radio Taxi DL1R X / Y
3 Tourist Taxi DL1Y
4 Tourist Taxi - Premium DL1Z
5 Tourist Taxi (7 Seater or above) DLIV
6 Rent-a-Cab DL1N
7 Local Taxi DL1T
• Economy Radio Taxi and Radio Taxi are allowed to
play upto the NCR and Contract Carriage Permit
are granted.
• Rent a Cabs service and Tourist Taxi are allowed
to ply all over India, with AITP permits.
Statutory
Regulations
Taxi Permit
NCR – National Capital Region / AITP – All India Tourist Permit
Source: Taxi Wing - Transport Department, Govt. of NCT of Delhi

Radio Taxi in Delhi – Legal Structure

What is Radio Cab or City Taxi?
In order to provide safe and comfortable taxi service to local
commuters and tourists, Delhi Tourism and Transport
Department launched Radio Taxi Service in 2006.
• Easy Cabs (Carzonrent India Pvt. Ltd.) launched its radio taxi service, with 250
radio taxis, in Delhi on December 28, 2006. Initially, the government launched
Air-conditioner Radio Taxis for local commuting with NCR region.
• In 2010, the government launched non-AC radio taxi service for Delhi called
“Economy Radio Taxi”. This service was launched at a flat fare of INR 10 per
kilometre.
• In December 2014, Transport Department revised the existing radio taxi scheme
and became the first state in the country to recognize Aggregator model with
introduction of Radio Taxi Scheme 2006 (Modified).
• In September 2015, Transport Department issued the new scheme called “City
Taxi Scheme 2015” and merged all old schemes in the new one.

What is Radio Cab?
• The Transport Department, Govt. of NCT of Delhi has taken up
Several major initiatives to protect the interest of commuters of
Taxi/Cabs time to time, i.e. Fixation of fare, Installation of GPS,
Calibration and Checking of fare meter at the time of annual fitness
etc.
• Pulsar/Procall Meters are installed in Radio Taxi. It needs to be
calibrated every year.
A Radio Taxi must have:
 Registered with Authority with series number - DL1R
 Licensee should own or aggregate a minimum fleet of 200 radio taxis
 Fare Meter (Duly approved by Transport Authority)
 GPS System and Tracking
 Drivers with Commercial License and Public Service Vehicle Badge (PSV)
 Booking can be accepted by Call Centre, Website and/or Mobile App
Transport
Initiatives

Issues with Old Radio Taxi Scheme 2006 (Modified)
• An individual can apply for Economy Radio Taxi Permit (DL1RT) for
a vehicle with engine capacity of 750 CC or more. However, the process
for an individual to apply for Premium Radio Taxi Permit (DL1RX) for a
vehicle with engine capacity of 1,000 CC or more is not defined.
• There are numbers of Tourist Taxis (DL1Y) which are running on clean
fuel (CNG). There is no process to transfer Tourist vehicles to Radio
Taxi (DL1RT or DL1RX).
• Transport Department does not allow individual radio taxi permit
holders to sell their vehicles and transfer the permit.
• Existing permit holders can not transfer the radio taxi vehicles in the
name of individual.

City Taxi Scheme 2015
Licensee Profile
• Must be either a company under the Companies Act, 1956 mandated
to provide public transport services
• Will abide by all relevant statues including Motor Vehicles Act, 1988
and the Information Technology Act, 2000.
Operational
Infrastructure
• Shall ensure availability of adequate parking space for all taxis
• Shall have a registered office in Delhi / New Delhi and details
Fleet Size
• Shall maintain a minimum fleet of 200 radio taxis either owned or
through an agreement with individual taxi permit holders. Maximum
no. of vehicles with one operator is 2,500 taxis.
License
• The Operator shall be issued a regular license valid for a period of
five years
• Furnish a Bank Guarantee, in a format acceptable to the Transport
department for an amount of INR 15,00,000.

City Taxi Scheme 2015
Licensee Profile
• Cab should be brand new (engine capacity of 600CC or above) and
run on clean fuel.
• Should be fitted with electronic fare meters on the front panel
(dashboard).
• Should be an LCD board to display that the vehicle is a radio taxi.
• Must be fitted with GPS/GPRS based tracking devises which must be
in constant communication with the Central Control.
Working
Condition
• Working hours of drivers is to be limited in accordance to the Motor
Transport Workers Act, 1961
Driver
• Shall have a valid commercial driving license to drive a Radio Taxi
and valid Public Service Badge
• Shall be of good moral character without any criminal record.

Registered Radio Cab Operators
Player Business Model No. of Vehicles License Status
Hybrid
(Ownership + Aggregator)
1,459 Yes
Ownership 1,016 Yes
Ownership 1,386 Yes
Ownership 55 Yes
Ownership 185 Yes
Ownership 96 Yes
Smooth Cab Ownership
Not launched the
operation
Yes
Aggregator
Not launched the
operation
Yes
Aggregator -- Under Process
Source: Taxi Wing - Transport Department, Govt. of NCT of Delhi 2015

Tourist Taxi Vs. Radio Taxi
• As per law, Tourist Vehicle can not be operated as Stage Carriage or Contact Carriage Vehicle
or Radio Taxi or Local Taxi.
• The evolution of new age taxi firms are trying to change the landscape. Tourist Taxi with AITP (All
India Tourist Permit) has less regulation. Law is ambiguous.
• Legally, City Taxi operator should have authorized fare meter installed but new age taxi firms are
using mobile phone as fare meter. Indian Authorities are not aware of this new business
model.
• There are some local regulation which creates conflict. E.g. in Delhi, Local Taxi should use CNG
only, whereas Tourist Taxi can be Diesel & Petrol.
=
Or
≠

Sec 74 (Contract Carriage Permit ) – MV Act 1988
• The vehicles shall be used only in a specified area or on a specified route
or routes.
• Specified fares or rates of fares shall be charged and a copy of the
fare table shall be exhibited on the vehicle.
• A taximeter shall be fitted and maintained in proper working order, if
prescribed.
Radio Taxi are govern by Section 73, 74 of Motor Vehicles Act, 1988.

• The permit holder shall cause to be prepared in respect of each trip a list in
triplicate of tourist passengers to be carried in the vehicle, giving full particulars
— (a) name of the passengers, (b) address of the passengers, (c) age of the
passengers, (d) starting point and the point of destination.
• The tourist vehicle shall either commence its journey, or end its journey, circular
or otherwise, in the home State, subject to the condition that the vehicle shall not
remain outside the home State for a period of more than 119 days [three
months]. The tourist vehicle shall not be parked on any bus stand used by stage
carriage and shall not operate from such bus stand.
• The tourist vehicle shall be painted in white colour with a blue ribbon of five
centimetres width at the centre of the exterior of the body and the word "Tourist"
shall be inserted on two sides of the vehicle within a circle of sixty centimetres
diameter.
• The permit holder shall not operate the tourist vehicle as a stage carriage.
Tourist Taxi Permits are governing by Rule 85 and 85(A) of CMVR, 1989.
Rule 85 (Tourist Permit ) – CMVR Act 1989

Key Players – Taxi Market in Delhi

Types of CompaniesTypeof
Operator
• Individual operators or
cabs running in different
part of country
• 88-92% of the market is
still unorganized.
• The companies
registered under
Radio Cab Scheme.
• It just constitutes 4-
5% of the market.
• The company are
affiliating with Taxi
owners.
• Follows Garage-
to-Garage Model
• The new model which
is aggregating taxi
under single brand.
• It constitutes less than
0.5% .
Key
Planers
• Individual Owners
• Small Operators
• Taxi Stands
• Pre-paid Taxi
• Meru Cabs
• Easy Cabs
• Mega Cabs
• TAB Cab
• TaxiGuide
• Savaari
• Cab24X7
• TaxiPixi
• Uber
• Ola Cabs
• Taxi for Sure
• Bookmycab
Unorganized Market Radio Cabs Affiliator Aggregator
There are broadly 4 (Four) different kinds of operators in Market:

Meru Cabs (V-link Travel Solutions)
• Meru Cabs is one of the largest taxi operators in India
and is third largest taxi operators in the world.
– The company was earlier following Asset-
ownership Model and now started Aggregation
model with ‘Meru Flexi’.
• Meru Cabs is growing at annual growth of 30% and
generated a revenue of INR 8 billion.
• For the cabs owned by Meru Cabs, all maintenance
responsibility is with company. It has maintenance
tieup with the car dealers – Mahindra: Concept /
Maruti: MSM / Tata: Autolink.
Siddhartha Pahwa,
CEO, Meru Cabs
“There is a huge gap in the
market. In 2007, Meru started the
first nationwide technology-
enabled taxi service. Meru has
recorded profit of INR 36 million in
2013-14 and expected to generate
a revenue of more than INR 7-8
Billion in 2015-16”.
Founded In: 2006
Founder: Neeraj Gupta
Investor: India Value Fund III
Fund Raised: $93.1 million
Cab Model: Assets Ownership & Aggregation

Meru Cabs – Key Statistics
City Trips / Day Trips/Cab
Customers /
Trips
Km / Cab /
Day
Delhi 4,808 6 3 200
Mumbai 5,376 6 3 170
Bangalore 2,000 4 2.5 150
Hyderabad 1,400 3.5 2.5 275
Meru Flexi – Ownership with the Driver on National Permit and the
company charge percentage from the drivers. In case of Meru Plus
scheme permit is national permit and it is in owner scope. For this
scheme Meru takes INR 25,000/ as security money and INR 400/day
charges without any fail, if company provide more than INR 2,000/ day
business that subscription will taken as 20% of business .
Meru Eve – The company introduced women only cab and recruit women
drivers to provide safe transport.
Note: Meru data is for year 2013-14.

Easy Cabs (Carzonrent)
• Easy Cabs promises 100% service delivery assurance
24X7 in four major cities - New Delhi, Mumbai,
Bangalore and Hyderabad.
• The company has around 7,000 vehicles in its fleet.
The services offered by Carzonrent are Easy Cabs,
Myles, Intra-city, Outstation and Limo service.
– It will launch its services in Ahmedabad, Pune,
Chandigarh and Jaipur in the next six months.
– Myles (Self-drive Service) is running with a fleet of
250 vehicles. It has raised an investment of INR 4
billion to have a fleet of 5,000 car by 2016-17.
Founded In: 2006
Founder: Rajiv K Vij
Investor: SIDBI Ventures, Westbridge Capital
Partners and BTS Investment Advisors
Fund Raised: $20 Million
Cab Model: Assets Ownership
Rajiv K Vij
CEO of Carzonrent
“Carzonrent is always been known for its
customer centric approach and innovative
initiatives. This approach will mitigate the
issue of cab delivery in our approx. 6 million
valued customers and will enhance their
trust. We have well-built technology
infrastructure which permits to preciously
administer the flow of our large fleet size. We
guarantee 100 % service delivery assurance
else a free ride will be provided. But at the
same time we are convinced, the customers
will never have to face cancellation trouble.”

Easy Cabs – Key Statistics
• Easy Cabs acquired Ridingo in April 2015 to foray into into the ride share business, which it expects
to be 75% of its total business in the next five years.
• In order to increase, Easy Cabs, which acquired the online car rental service aggregator, QCABS
for an undisclosed amount in 2012.
Customers /
Trips
Km / Cab /
Day
Delhi
Mumbai
Bangalore
Hyderabad
Key Initiatives
• Easy Cabs experiments with many different maintenance model. Drivers was made responsible for
the maintenance of the cabs. However it was not successful. Schedule maintenance should be
done by the fleet owner. Corrective maintenance should be done by the drivers.
Maintenance

Mega Cabs
• Mega Cabs is part of ‘Group Mega’ and was India’s
first GPS/GPRS Radio Taxi Service provider.
• It is one of the largest players in the radio taxi industry
with presence in 7 cities, which includes 6 Airports.
– Mega Cab is the only radio cab operator in
Amritsar and Ludhiana.
– Mega is the only radio cab operator present in
Kolkata but the fleet is maintained very poor and
one has to book at least a day in advance.
• The company has entered into agreement with Just
Dial to serve cab booking in Delhi.
Kunal Lalani
Managing Director, Mega Cabs
“The readiness of these markets to pay ₹18
or ₹20 per kilometre is not the only draw for
operators. Newly developed infrastructure,
including airports, is a major factor too.
Mega Cabs started in Chandigarh in 2008
there were only two daily flights. Today
there are over 10 flights per day.”
Founded In: 2001
Founder: Kunal Lalani
Investor: Group Mega (Parent Company)
Fund Raised: NA
Cab Model: Asset Ownership

Ola Cabs (ANI Technologies)
Founded In: January 2011
Founder: Bhavish Aggarwal and Ankit Bhati
Investor: Matrix Partners and Tiger Global
Management
Fund Raised: $719.1 Million
Cab Model: Aggregator
• Ola Cabs has been really successful and currently
emerged as the largest player in the market. The
company is growing at 25-30% on MoM basis.
– The average ticket size for Ola Cabs’ city taxi is
around INR 250.
• Around 95% of bookings is done through the mobile
app. The company has witnessed a 100% increase
QoQ on booking through the app since August 2012.
– The app got more than 8 million visits across
Android and iOS platform. The company is making
more than 200,000 rides per day. Bhavish Aggarwal
CEO, Ola Cabs
“The cab industry is the fastest growing
market in the transport segment. Our
model of aggregation allows us to grow
faster compared to traditional players. A
large part of the market, especially in
cities where cabs don't exist, is still
unorganized. Through our perpetual
technology innovation, intense analytics
and seamless tech integration at every
level, we clearly stand out from the
rest.”

Ola Cabs – Key Statistics
• Ola is looking to enter shuttle bus services for urban commuters by aggregating tourist
and chartered buses on its platform. Passengers will be able to make bookings by
entering the desired destination and time preference; the app will then indicate the closest
bus with available seating.
Customers /
Trips
Km / Cab /
Day
Mumbai
Delhi
Bangalore
Hyderabad
• The company is facing legal challenges in Delhi for operating CNG vehicles on point-to-
point basis.
New Services
Legal Tussles

Taxi For Sure (Serendipity Infolabs Pvt Ltd)
• Taxi For Sure is one of leading Cab Aggregator in
India and was acquired by Ola Cab in February
2015.
– The company has grown at a rate of 25-30%
MoM and has clocked three million transactions.
• As an aggregator of car/cab rentals, its offerings
include local point-to-point pick-up and drop, airport
transfer, local packages (for four or eight hours) and
outstation packages.
– Besides regular rentals, it provides luxury cars
to the commuters.
Founded In: June 2011
Founder: Raghunandan and Aprameya
Investor: Bessemer Venture Partners, Accel
Partners, Helion Venture Partners, Blume Venture
Fund Raised: $36 Million
Bhavish Aggarwal
CEO, OlaCabs
There is significant complementary
value that this acquisition adds both
on the supply and demand sides for
Ola and TaxiForSure. The latter
follows a different model of supply and
distribution by working with cab
operators, while Ola works with driver-
entrepreneurs.

Uber
Founded In: March 2009
Founder: Travis Kalanick and Garrett Camp
Investor: Google Ventures, Goldman Sachs,
Menlo Ventures and Bezos Expeditions
Fund Raised: $6,907.50 Million
Allen Penn
Head – Operations (Asia), Uber
“The pace of growth in India has been
the fastest for us globally which makes
us extremely bullish about this market.
But we do not want to be a niche
service that is priced really high. The
idea is to open up new customer
segments and price points which make
us an everyday type service for a
whole different set of people. And since
we now have the scale here in India
doing so will be easier”
• Uber officially launched in India in October 2013.
Currently, the company is operating in 18 cities – the
largest market outside the U.S.
– The concept is gaining lots of popularity around
the world. It is posing real challenge to traditional
taxi market.
– The company is signing up around 20,000 drivers
every month around the world.
• Uber is not sharing any information in the public
domain as of now. There is no detail available about
the number of taxis and bookings.

Savaari (Savaari Car Rentals Pvt Ltd)
Founded In: August 2006
Founder: Gaurav Aggarwal
Investor: Intel Capital and Inventus-
Fund I
Fund Raised: $1 Million and $4.36 Million
• Savaari offers car rentals across 60 cities in India
to both retail and corporate customers.
• The company is specialized in Long-distance
outstation trips and local half-day/full-day bookings.
It has over 500 corporate clients. It is operating in
Garage-to-garage segment which is more
profitable venture compared with point-to-point
model.
• Savaari currently has a network of 150+ vendors
and so far completed 74,000 transaction, 20 million
trip kms and 1,500,000 trip hours to its credit.
“We are connected with most of the
airports in the country and a
partnership with an airline will be an
added advantage. The company
aims to target OTAs (Online Travel
Aggregators) in coming months so
that people can also avail a cab or
taxi while booking their air, bus or
train tickets. About 35% of the
bookings are done online and the
balance via phone.”
Gaurav Aggarwal
CEO, Savaari Car Rentals

taxiGUIDE (Archaea Mobility Services)
• taxiGUIDE is an online car rental booking service. The
company provides customers the option to compare
vehicles, operators and pricing, to make an intelligent
and informed booking online, based on vehicle
availability.
– Car rental operators too can use the website to
upload their inventory and availability on a dynamic
basis thereby enabling better asset utilisation.
• The customers can make online reservations for which
they have to pay 20% of the total amount at the time of
booking.
Founded In: October 2010
Founder: Ashok, Subash and Shashibushan
Investor: R P Anand (Angel Investor)
Fund Raised: $40,000
Cab Model: Taxi and Car Rental
Aggregation / Affiliation
“taxiGUIDE.in provides customers
the option to compare vehicles,
operators and pricing and then make
an intelligent and informed booking
online based on vehicle availability. A
customer does not have to depend
on online directories/yellow pages
and make repeated calls for order
fulfilment. He/she can book a car
rental service at the click of a button.”
Ashok Ananthakrishnan,
CEO, taxiGUIDE

Airport Taxi Operation - Delhi

Taxi Operation @ Delhi Airport
• Taxi Operators are still generating large chunk of revenue from Airport Operation.
The operators earn between 30-50% of their revenue from the airport segment.
• The market for providing transport services to passengers to and from the IGIA
(both its domestic and international terminal) is highly competitive and is presently
dominated by various types of taxi services.
• Existing available Cab Service at Terminals:
Terminal 1: Pre-paid Taxi / Easy Cabs Terminal 3: Pre-paid Taxi / Meru / Mega

Black and Yellow Taxi – Delhi Airport
• Pre-paid cab without meters as having
contract carriage permit
– 1200 cabs at T1 and 1500 cabs at T3
• One black and Yellow taxi can operate for
15 years. The life of permit is unlimited.
– INR 100,000 – Cost of permit in black
market
– One will need to buy permit to run the
service
• Driver can make maximum of 3 rounds
(6:00 am to 1200 o’clock)
– No leave allowed, if you take a leave
then you need to pay INR 500. In case
of Radio Cabs drivers can take a leave
with prior intimation. In case of causal
leave, you need to pay full day
subscription.Copy of Permit – DLIT6454

Fare Comparison
DTC Express Metro Express Radio Cab
Dhaula Kuan INR 25 INR 80 INR 185
New Delhi Railway Station INR 50 INR 150 INR 370
Kashmere Gate INR 100 INR 180* INR 552
* One interchange – Kashmere Gate to Connaught Place
Bus Transport is the cheapest mode, whereas taxi offers the great
flexibility.

Taxi Market – Driver Recruitment

Driver Recruitment Model – Asset Ownership
Meru Cab
(New)
Meru Cab
(Old)
Easy Cab Mega Cab Tab Cab
Advance Payment INR 25,000 INR 25,000 INR 50,000 INR 30,000
Subscription INR 1,435 INR 900 INR 1,500 INR 1,200
Advertising Zero Zero Zero Zero Zero
Per Call Booking Customer – INR 50 Customer – INR 30 Customer – INR 30 Customer – INR 30
Booking (Internet) Free Free Free Free Free
Main Business Centre Mumbai Mumbai Delhi Delhi Mumbai
* New Cab - Toyata Etios radio taxi / Old Cab - Logan & Indigo
Drivers Engagement with Radio Cabs Operators
• Radio Cab companies follow rigorous selection process for selecting the “Drivers”
- Personal Interview >> Medical Test >> Driving Test >> Psychometric Test >>
Background Verification.
– The company also gives induction training on the areas of customer service,
defensive driving, use of technology etc. to drivers.

Driver Retention Model – Aggregator
• Initially, aggregators used to security deposit of INR 10,000-15,000 from Taxi
owner at the time of enrolment and charge a commission of 15-20% per
booking. However, no security deposit is taken now.
• As they compete for the same customer pie, the aggregators are making good
customer service the key differentiator. The critical part of the game is “Driver”. If
the drivers are happy , it leads to better customer experience.
• The aggregators train drivers on health and hygiene, customer service, good
driving practices and vehicle maintenance, among other things.
Source: ET Power Now 2012

Thank You!!!
Valoriser Consultants
Tel: +91-11-25546049 | Mobile: +91-9958835533
Email: Info@valoriserconsultants.com / jaspal.singh@valoriserconsultants.com
Website: www.valoriserconsultants.com

Radio Taxi Market in India - A case study of Delhi

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Radio Taxi Market in India - A case study of Delhi