Taxi booking market in India is highly unorganized, which makes it an attractive market for taxi aggregators. Since 2009, the market has witnessed a compounded annual growth of 41.90% in terms of market revenues, due to number of taxi providing services entering the scene, as per reports.
The latest entrant to this market is TaxiPixi – a smartphone based aggregator for Radio Taxis. Launched in May 2013, the TaxiPixi App allows users to send taxi booking requests directly to drivers of multiple Radio Taxi companies including Meru Cabs, Mega Cabs, G Cabs, Air Cab, TaxiForSure, Ola Cabs and other operators. TaxiPixi has achieved a total of 7,500 downloads till date in the Delhi NCR area where its service is currently available.
According to Jitender Sharma, one of the three Co-founders of TaxiPixi “The city taxi market in India is still highly unorganized and inefficient. The top three organized players – Meru Cabs, Mega Cabs and Easy Cabs – have only about 10% market share and that too only the top 4 metros. Customers typically have to wait 30-45 minutes to get a taxi and on the other hand Radio Taxi drivers waste 50% of their time every day waiting for a customer. We see this as a case of market inefficiency and the TaxiPixi platform is an attempt to help reduce this inefficiency.”
Currently available in Delhi and other NCR cities only, TaxiPixi is planning to extend its services in Tier 2 and Tier 3 cities in future.
The App claims to provide a quick “ less than 30 seconds” booking process which requires a user to provide the pick-up and drop addresses using the map, typing-in or by selecting from a list of recently used addresses. The user then needs to provide the pick-up time and type of cab. TaxiPixi allows users to choose from 4 different types of taxis – Economy, Economy Plus, Regular and Premium – and charges at flat fee of Rs. 50 per booking.
Despite being a promising and growing market, the Radio Taxi market currently holds around 15,000 Radio Cabs (with GPS installed in them) in the major cities across India, says another studyconducted by Sunstone Business School. To overcome the shortage of radio taxis and fulfill the customer demand, TaxiPixi, provides the drivers with a GPS-enabled smartphone device and thus enables the real-time tracking system across different types of cabs and multiple operators
“We add an operator to the TaxiPixi platform only after a thorough manual verification of all documents, permits and licenses of each cab and driver.” added Jitender.
Trying to shift from an unorganised to an organised market, the industry has witnessed debuts of several players in last couple of years, including Ola Cabs, Savaari, TaxiForSure and now Uber’s expected expansion to India.
The Industry also seems promising in terms of outside investments. With a number of VC and angel fundings several taxi providers have raised capital including, Savaari’s $1 Mn Series A funding from Inventus Capital, Olacabs’s Series A from Tiger Global and TaxiForSure’s $4 Mn from Accel Partners, Helion Venture Partners and Blume Ventures