UR Associates Research

Indian Car Rental Aggregator Market 2012 - Challenges and

n
Growth Opportunities

tio
ta
en
es
Pr
e
pl
m
Sa
Indian car rental aggregator market outlook

A Sunrise Industry in India, Indian Car Rental Aggregator Industry has grabbed the attention of Venture
Capital and Private Equity Firms with many startups attracting Angel and VC funding

n
tio
ta
Players Ola Cabs, Estimated current
Saavari Car Rentals, Major presence in market size XX cabs

en
TaxiForSure, Mumbai, Bangalore & Estimated current
BookMyCab, YourCabs, Delhi NCR, market value Rs X bn

es
Taxi Guide, GetMeCab

Pr
New taxis registrations in India (2006-11)
e The car rental industry is predominantly an
pl
Nos unorganized market with organized players having
m

350,000 25.0% less than X% of the market share. We expect the

300,000
Sa

250,000
20.0% industry to become more organized and operate with
200,000 15.0% higher efficiency mainly driven by car rental
150,000 10.0% aggregators. There were about xxxx cars registered as
100,000
50,000
5.0% taxis in India during the period March 2006 - March
0 0.0% 2011. The number of new registrations has grown at a
2006 2007 2008 2009 2010 2011 CAGR of x.x% during the period March 2006 - March
Net registrations % growth
2011.
Business model

Please read our Please read our Please read our

industry report for industry report for industry report

n
further details further details for further details

tio
ta
en
es
Please read our Please read our Please read our
industry report for industry report for industry report for

Pr
further details further details further details
e
pl
m
Sa

Since cars are by the car rental aggregators The business is characterized
by high .. Please read our industry report for further details.
Revenue model
Revenue model A Revenue model B

This is an unique revenue model adapted by

n
This is the most common revenue model a cab rental aggregator. In this model the car

tio
adapted by all the cab rental aggregators aggregator xxxx by xxxx to the car
operator/driver.

ta
Advantages of this model

en
Disadvantages of this model Advantages of this model
Disadvantages of this model

es
Pr
e
Illustration of revenue model B
pl
m

Case I Case II Case III

Particular A XXXX XXXX XXXX
Sa

Particular B x% x% x%
Particular C XXXX XXXX XXXX
Particular D xx xx xx
Particular E XX XX XX
Particular F XXXX XXXX XXXX
Particular G XXXX XXXX XXXX
Particular H XXXX XXXX XXXX
Car rental aggregator market industry estimates
The car rental aggregator market is a nascent market and has about XXXX cabs under its
network which is less than X% of the total car rental market in volume terms. We have done a
general analysis on what could be the size of this industry and where it is headed.

n
tio
Fleet Size / 35% 45% 55% 65% 75% 85%
utilization rate

ta
en
CY12 XXXXX xxx xxx xxx xxx xxx xxx

es
CY13 XXXXX xxx xxx xxx xxx xxx xxx

Pr
CY14 XXXXX xxx xxx xxx xxx xxx xxx

CY15 XXXXX e xxx xxx xxx xxx xxx xxx

pl
CY16 XXXXX xxx xxx xxx xxx xxx xxx
m
Sa

CY17 XXXXX xxx xxx xxx xxx xxx xxx

CY18 XXXXX xxx xxx xxx xxx xxx xxx

We expect the current industry size by value to be between Rs XXXXXX mn and the utilization
rate to be in the range of XX-XX%. We estimate that the car rental aggregator industry would be
about XXXX cabs by CY18 and expect the utilization rate of cabs to improve to xx%.
Overview of major players
Company Start date Cities Fleet size Investors Invested Stake
Amount acquired
(%)
Ola Cabs Year xxxx X XX XXX Rs x million x%

n
tio
Savaari Year xxxx X XX XXX Rs x million x%

ta
TaxiForSure Year xxxx X XX XXX Rs x million x%

en
es
Pr
TaxiGuide.in Year xxxx X XX XXX Rs x million x%

Bookmycab.com Year xxxx X e XX XXX Rs x million x%

pl
m

Yourcabs.com Year xxxx X XX XXX Rs x million x%

Sa

All the companies are still in their early stages and are not generating much in
terms of revenue. However, the companies are expanding at a rapid pace.
Aggregators website traffic study
Company Traffic Rank in Average Load Time Estimated daily time Site Reputation Comments
India (seconds) on site (mm:ss)
Olacabs.com XXXX x.x 0:00 X Please read our industry
report for details

n
Savaari.com XXXX x.x 0:00 X Please read our industry

tio
report for details
TaxiForSure.in XXXX x.x 0:00 X Please read our industry

ta
report for details

en
TaxiGuide.in XXXX x.x 0:00 X Please read our industry
report for details

es
Getmecab.com XXXX x.x 0:00 X Please read our industry
report for details

Pr
Yourcabs.in XXXX x.x 0:00 X Please read our industry
report for details
Bookmycab.com XXXX
e x.x 0:00 X Please read our industry
pl
report for details
m

Carzonrent XXXX x.x 0:00 X Please read our industry

report for details
Sa

Redbus XXXX x.x 0:00 X Please read our industry

report for details

We have tried to assess the popularity of the car rental aggregator websites using
web analytics and have made some interesting observations. Please read the
industry report for further details.
Demand drivers & growth opportunities
Increasing urbanization and growth in affordability..

n
Rise in population in major cities (2001-11) Favourable economic indicators per capita income and

tio
GDP growth

ta
City Census 2011 Census % %

en
Rs
2001 addition growth XX
40,000 XX 12.0%
XX

es
XX XX
City A XXXX XXXX XXXX x% 35,000 XX XX 10.0%
30,000 X%

Pr
25,000 X% X% 8.0%
City B XXXX XXXX XXXX x% 20,000 X% X% 6.0%
X% X%
e 15,000 4.0%
10,000
pl
City C XXXX XXXX XXXX x% 5,000 2.0%
m

0 0.0%
2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12
Sa

City D XXXX XXXX XXXX x%

Total XXXX XXXX XXXX x%

Per capita income (at constant prices) GDP growth rate

Please read our industry report for further details.

Demand drivers & growth opportunities
Rise in foreign tourist arrivals and

n
Foreign tourist arrivals (FTAs) in India Domestic tourist visits to all States/UTs

tio
ta
million
million
7.0 X 30%

en
X X
6.0 X X X 25% 900 X 20%
X X 20% 800 X 18%
5.0

es
700 X 16%
15% X 14%
4.0 X X 600 X X
X X 10% 500 X 12%
3.0 X 10%

Pr
5% 400 X X
2.0 X 8%
0% 300 6%
1.0 200 4%
-5%
0.0
e -10%
100
0
2%
0%
pl
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
m

(P)
Sa

FTAs in India % increase Domestic tourists vists to States/Uts % change

Please read our industry report for further details.

Demand drivers & growth opportunities
Airport passengers are

Domestic passenger throughput forecasts International passenger throughput forecasts

n
tio
Million Million

ta
X
X

en
X

es
X
X

Pr
X
X
X
e
pl
m

FY 02 FY 07 FY 11 FY 17E
FY 02 FY 07 FY 11 FY 17E
Sa

Domestic Passenger Throughput Forecast International Passenger Throughput Forecast

Please read our industry report for further details.

Current and potential challenges
Scalability is the Please read our industry report for further
due to
major challenge details

n
tio
Industry will face Please read our Industry report for further
due to
intense competition

ta
details

en
Attracting
Please read our Industry report for further

es
customers in the leading to
details
early stages

Pr
Maintaining service e Please read our Industry report for further
leading to
pl
standards details
m

Dearth of
Sa

leading to Please read our Industry report for further

experienced
details
professionals

Please read our industry report to get insights on the challenges faced by the car
rental aggregators in carrying out their operation
Radio cab operators Vs Car rental aggregators
While the radio cab industry has been growing strongly over the last 5 years, the car rental
aggregator industry has just started with many startups entering the market.

Disadvantages over radio cab companies

n
Advantages over radio cab companies

tio
ta
en
Please read our industry report Please read our industry report

es
for further details for further details

Pr
e
pl
m
Sa

Huge demand exists for both industries to grow, however the competition is
expected to intensify in the future
Centralised software will increase efficiency
Centralised software that provides real time inventory could assist in driving
efficiency and better services to the customers

n
This industry is in its infancy

tio
stage with 6-7 players

ta
currently. As demand is

en
expected to grow, new entrants

es
cannot be ruled out. Since the
cars mostly operate on a

Pr
Hence, it will be difficult for the
e
aggregators to ensure that
pl
m

Please read our industry report

Sa

for further details.

There may be instances that a similar .. Please read our industry report for
further details
Company profiles

n
tio
ta
en
es
Pr
e
pl
m
Sa

We are only presenting OLA CABS profile in the presentation, all other company
profiles are prepared on similar lines.
Please Read Our Industry Report For Further Details
Company profile Ola Cabs

Company highlights

n
One of the first entrant in the car rental aggregator industry.

tio
Launched: Month 20XX Strong presence in City A, expanded operations in City B and

ta
City C
Area of operations:

en
City A, City B and City C Strong focus on technology to enhance the customer

es
Existing PE/VCs: XXX experience and to improve the operational efficiency of the

Pr
Fund company
e Has received funding of ~Rs X mn which will enable it to grow
pl
faster than peers
m
Sa

Ola cabs launched its operations in Month 20XX and is the biggest car rental aggregator company in Mumbai.
The company was started by XYZ and ABC, with an aim to solve the inter-city and intra-city travel hassles of
people.
Company profile Ola Cabs

n
tio
ta
en
es
Pr
Share capital XXX Fund holding
e Units Value
pl
Nos XXX
XXX No. of equity shares
m

(x.x%) Rs X
Nominal amount per share
Sa

XXXX
(x.x%) XXX Premium/(Discount) amount per share Rs XXXX
(x.x%) Total amount for equity share Rs mn XX
No. of preference shares allotted Nos XXXX
Nominal amount per share Rs XXXXX
Premium/(Discount) amount per share Rs XXXX
Equity shares Series A Preference shares Total amount for preference shares Rs mn XXX
Series B Preference shares Total amount paid Rs mn XXX
Company profile Ola Cabs
Operations Management

n
Ola Cabs currently operates in:

tio
Bhavish Aggarwal: Bhavish drives the
City A: started in month 20XX
company's vision and manages customer and

ta
City B: started in month 20XX partner relations.

en
City C: started in month 20XX Ankit Bhati: Ankit heads the technical aspects of

es
Ola Cabs, ensuring a quick, convenient and
The company provides services in: instinctive experience for the customers and

Pr
Point-to-point partners.
Local rental half & full day e Maneesh Mittal: Maneesh joined the firm in June
pl
Outstation services 2012 and heads the Operations of the company.
m

He is responsible for building the operations unit

Sa

that helps in effective allocation of cabs.

Ola Cabs has branded its point-to-point taxis as a part of their advertising strategy.
Please read our industry report for further details.
Company profile Ola Cabs
Key strength: strong focus on technology

n
tio
ta
en
es
Pr
e
pl
m
Sa

Ola Cabs is a technology driven company.

The company leverages its strong
Ola Cabs has a lot of emphasis on
technology expertise for providing better
technology to forecast..Please read
and convenient user interface. Using its
our industry report for further details.
newly launched mobile application the
users can book a cab in one touch.
Company profile Ola Cabs
Revenue model Growth strategy

Ola Cabs initially started with the

n
revenue model A in which it xxxxxx. The company is growing aggressively

tio
While the company still follows the although on a small base. It has a target

ta
revenue model A, it is aggressively to .

en
pushing its revenue model B.
Please read our industry report for

es
Please read our industry report for further details.

Pr
further details.
e
pl
Challenges and potential risks
m
Sa

In order to grow aggressively Ola Cabs is xxxxxx

Maintaining its xxxxxx
Ola Cabs plans to scale up xxxxxx

Please read our industry report for further details.

Please read our industry report to get in-depth insight of the Indian Car Rental
Aggregator Market, the Growth Drivers, Challenges, Company profiles, Industry
Size and expected growth.

n
tio
ta
Disclaimer:

en
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or
by any means, electronic, mechanical, print, publishing, photocopying, recording or otherwise without the permission of UR

es
Associates. Any unauthorized act in relation to all or any part of the material in this publication may call for appropriate
statutory proceedings.

Pr
The information contained herein is confidential and is intended solely for the addressee(s). Any unauthorized access, use,
reproduction, disclosure or dissemination is prohibited. The information and opinions on which this communication is based
e
have been complied or arrived at from sources believed to be reliable and in good faith, but no representation or warranty,
pl
express or implied, is made as to their accuracy, correctness and are subject to change without notice. Certain matters
m

discussed in this Document may contain statements that are individually and collectively forward-looking statements. Such
forward-looking statements are not guarantees of future performance and are subject to known and unknown risks,
Sa

uncertainties and assumptions that are difficult to predict. Recipient/s should consider this report only for information
purpose. The information enclosed in the report has not been vetted by the compliance department due to the time sensitivity
of the information/document. UR Associates shall not assume any legal liability or responsibility for any incorrect, misleading
or altered information contained herein.