BIKE TAXI MARKET IN INDIA
INTRODUCTION
India is the world’s largest motorcycle market with 12 million units sold in 2020, which is 4.8x larger than the car market which sold 2.5 million units in 2020.
The motorcycle market is large in India mainly due to the cost of purchasing a motorcycle, higher mileage, smoother mobility, and easier movement all in all. The below 150cc range held more than 75% of the market in 2020.
The on-demand taxi market started in India in 2013 with Uber and Ola holding the larger part of the market. Bike taxi is not present in all states due to regulatory issues at the moment
MARKET DYNAMICS
Smartphone usage saw a massive up hike in India post-2015 along with decreasing mobile data rates for 4G. As of 31st March 2021, there are 1.18 Billion Wireless Telecom Subscriptions in the country. The urban subscriptions account for 0.64 Billion while the rural subscriptions account for 0.53 Billion. Smartphone growth also increased mobile payments and cashless money transfers across the country primarily in the cities. The Bike Taxi market will be heavily influenced by the teledensity rates
There is also an increase in infrastructure setup across the Tier 1 cities for quick and reliable public transport systems such as Metro etc. mainly for peak time travel targetted at office hubs, residential areas, and areas with commercial interests.
Bike taxis launched in multiple states were shut down due to regulatory issues. The ambiguity of utilizing a white number plate vehicle for commercial purposes has raised concerns by many State Transport Authorities across India.
Goa was the first state to allow usage of two-wheelers as taxis with one passenger allowed per vehicle. Currently, Rajasthan, Mizoram, Uttar Pradesh, Haryana, West Bengal, Goa, and the union Territory of Chandigarh allow bike taxis to function. Madhya Pradesh and Karnataka have deemed it illegal for bike taxi operations. Regulations across the country will be made to allow the usage of bike taxis.
Fuel prices are increasing and have crossed Rs 100/L in multiple cities. This will be a driver for bike taxi demand as cab services will be expensive for the majority of the users.
INVESTMENT IN BIKE-SHARING AND BIKE TAXIS
- Ola launches Ola Bike and is present in more than 150 cities across India. Ola also invested $100 Million in Vogo which is a bike sharing startup. Ola currently holds 30% of the company share of Vogo
- Baxi is a bike taxi firm currently based out of Haryana. Baxi raised more than $1.4 Million with Institutional investors including the Hindustan Times Group, Dalmia Bharat Group , Alok Mittal, Manish Khetarpal and Ashok Krishnan. Baxi also focuses on hyperlocal delivery,courier services,last-mile logistics and field services
- Rapido is currently present in 100 cities across the country, with more than 25 M app downloads. Rapido raised $124 Million to date with $43.4 Million being raised in its series C round.
- Bounce is a scooter-sharing firm based out of Bangalore and currently present in Bangalore and Vijayawada. It has raised $214 Million to date with the latest round being Series D
BIKE TAXI MARKET SIZE AND FORECAST
The Indian Bike taxi market size was estimated at XX million taxis estimated to generate ~$xx-$xx Billion revenue in 2021. More than 90% of the market will be held by the top 3-4 players with others having a negligible share in the market.
The market will be mainly driven by Tier-1 and 2 cities, with last-mile connectivity being the prime aspect in this market
The target user base of on-demand bike taxis in India is typically urban with an income of 15,000 – 30,000/ month. The Age group will be about 20-30 years of age and the ride distance will be 4-7 km on average.
The market size of the on-demand bike taxi market in India was estimated at $XX Million in 2020, growing at YY% CAGR till 2026.
The operators don’t own their vehicles unless bike-sharing operators come into the picture. Similar to the on-demand taxi market, the operators will take a commission from the fare. For operators with their own vehicles, there will be a salary structure for the drivers with incentives for a certain number of trips.
The electric 2 wheeler market can provide vehicles specifically for this market as running costs will be much lower and this will increase the overall earnings of the driver.
COMPETITIVE LANDSCAPE
The market will be lead by the same competitors of the on-demand taxi market i.e. Ola and Uber. Since it’s easier to procure a bike fleet the role of regional players and new players will be higher than that of a cab service provider.
Ola is currently valued at $3 Billion and has set up an electric vehicle plant in Tamil Nadu. The Ola future factory is being built with an investment of about ₹ 2,400 crore. The plant will have 10 general assembly lines and will be able to roll out a scooter every two seconds, and 25,000 batteries per day.They’ll be instrumental in setting up electric bike taxi in India
Uber overall had an accumulated deficit of $23.1 billion at the end of 2020. They’ll look to increase revenues across the board and India is a target market for them with Uber Moto having the capability to gather more trips and thereby increased revenue.
COMPANIES PROFILED
- ANI Technologies(Ola)
- Uber india Systems
- Roppen Transportation (Rapido)
- Wicked Ride Adventure Services (Bounce)
- VOGO
- Baxi
- Bikxie
THIS REPORT WILL ANSWER FOLLOWING QUESTIONS
- Growth of ride-hailing and ride sharing in India in terms of volume(Million rides) and value($Million)
- Personal vehicle ownership trend among under 30 age group buyers in top 5 cities in India, its effect on new car sales
- Opportunity for on-demand bike taxi operators in tier-3 cities in India
- Resistance from three wheeler and regional taxi unions
- Share of cash and digital wallet in payment? Which digital wallet is most popular and why?
- Major pain points of driver partners
- How are bike manufacturers, self-drive rental operators and small fleet operators reacting to the growth of ride-hailing?
- Opinion of city planners and transport authorities on ride hailing improving/worsening traffic congestion
- Competitive landscape and opportunities for new operators
- How do Ola and Uber plan to improve profitability and reduce cash burn
- How do bike taxi operators plan to deal with safety issues in different parts of India?
- What is the role of electric 2 wheelers in the bike taxi market?
- How will upcoming regulations and fuel prices affect the overall market?
- At what rate will there be an expansion mainly away from the cities?
- What will be the target consumer for this market and how will that evolve?
