May, 2017     

Indian Online Cab Aggregator Business Model – Q1CY’17 performance review

This is an excerpt from the document that covers the performance of Indian Online Cab Aggregators for Q1 Calendar Year 2017 covering it from business metrics, consumer and driver side.

State of the Online App Based Taxi Market (Ola Gmv, Uber Gmv, etc.)

•  A comprehensive performance review of the Online Cab Aggregator Business Model market
•  Assessed through a regularly tracked set of performance indicators
•  Published quarterly

What is in this report?

1. This report includes a comprehensive assessment of Indian online
cab sector performance and app based taxi market across eight key dimensions

2. Each key dimension is rated on whether the Ola Gmv, Uber Gmv, and the general sector performed above expectations (Bullish ), broadly as per expectation
(Neutral) or significantly worse than expectations (Bearish ) 
on that dimension                       

3. Each key dimension is further built up from multiple subdimensions, which are also rated for the sector using the above criteria

Research Methodology

RedSeer's Integrated Research ApproachTM incorporating the following:

1. Tracks 50,000+ monthly online transactions

2. Primary Interviews with 1,000+ drivers in 10+ cities every quarter

3. Primary Interviews with 3,000+ customers every quarter 

State of the Online Cabs Market Q1-CY17- Executive Summary

Q1-CY17 was marked by a clear tussle between growth and profitability in the app based taxi market. Growing focus on profitability pushed players to cut down on driver incentives- a move which led to driver strikes across India, with the associated supply crunch contributing to a q-o-q fall in rides for the industry

  • After a long period of uninterrupted growth, Q1-CY17 saw a 5%
    decrease in the overall cabs bookings for the industry
  • The reason for decline was two fold–
    • Supply crunch caused by driver strikes across major cities
      in January and February (10% decline in no: of working
      days/month from Q4'16)
    • Flat or dropping consumer demand (in terms of MAUs for
      leading players)
  • Driver strikes were precipitated by a 45% q-o-q fall in driver
    income, caused by sharp reduction in ride incentives- which in
    turn was pushed by a growing industry focus on profitability
  • We believe, based on Ola Gmv, Uber Gmv and other analyses, that this quarter has been one of 'stabilization' for the industry, which has taken the much needed steps to rationalize its financials. While there has been a short term hit on industry growth, we expect growth to pickup again once the supply stabilizes and demand grows for services like carpooling

Download the complete Online Cab Aggregator Business Model review document below.


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