17/03/2020
Startup India
Ola, Uber like services face tough competition from these newer mobility startups as market share drops
Unavailability of cabs and autos during peak hours, lower estimated time of arrival in heavy traffic conditions for bikes, and being more affordable has worked in favour of bike taxis.
By: Sandeep SoniMarch 12, 2020 6:19:59 PM
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Ola, Uber like services face tough competition from these newer mobility startups as market share drops
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The proliferation of multiple models in the mobility space such as bike taxis, autos, car or bike rentals, carpooling, last-mile mobility etc. seems to be eating into the share of a single user or sharing services of players such as Ola and Uber. The gross book value (GBV) of the online mobility space, which has increased from $1.8 billion in 2017 to $2.4 billion in 2018 and $2.9 billion last year, is seeing a gradual decline in the share of cab-hailing services, according to data from management consulting firm RedSeer. While cab-hailing services such as Ola and Uber remain the dominant player in the market but its share in terms of GBV has been eroded from 89 per cent in 2017 to 84 per cent in 2018 and further down to 76 per cent in 2019.
“P2P cab taxis contribute to the bulk of the online mobility market in GBV terms. However, the market is shifting towards rapidly growing bike taxis and other emerging models including car/bike rentals, car-pooling and self-drive models,” RedSeer said. Ola and Uber themselves have been quite active in autos, bike taxis, carpooling and rental markets along with players such as Oollta, Jugnoo, Rapido, Quick Ride, Zoomcar and Drivezy in the respective markets while Vogo, Bounce, Yulu, etc. have occupied the bike rentals and micro-mobility sub-segments in the overall market.
Uber declined to comment for this story. Comments from Ola are awaited.