This guest column is by Anshuman Mihir, Founder & CEO, MyTaxiIndia
By the end of year 2030 approximately 60% of the world’s population will be urbanized with a majority based in the developing countries. The mishmash of rapid motorisation, developing road infrastructure and urban sprawl has given rise to arduous traffic conditions in major cities. The increased number of vehicles on road and acute shortage of parking space has induced traffic congestion leading to greater time spent in traffic.
Public conveyance services like buses and metros do not provide last mile connectivity and are mostly swarmed with passengers struggling to find space to sit or stand. In addition, travelling through bus/metro also adds travel time to your already busy routine. The escalating demands for faster and convenient modes of travel has given rise to a number of commuting services for the rapidly increasing urban population. The taxi industry has a huge potential and high growth rates to cater to the growing requisites of the urban population.
The Indian taxi sector has seen a remarkable growth over the past few years. The intercity taxi market in India is estimated at around $15 billion and is forecasted to grow at 17-20% annually. Over the past 4 years, there has been an investment of over $400 (INR 2400 crores) of VC money into the Indian cab/taxi space. These organised taxi services comprise around 6% revenue share of the overall market size of the taxi market of India.
Approximately 1.6 million vehicles in India are licensed to run as taxis. While the taxi aggregators stared out many years after the traditional radio taxis, they’ve already started to eclipse them in terms of city coverage, fleet size, offerings and pricing.
With colossal online and radio taxi services available, the vogue certainly seems to be towards hiring taxi to travel. The modern-day taxi facilities aspire to bring a revolutionary change in the way people commute by addressing the mammoth need for the smoother and convenient travel in urban cities.
Such cities are increasingly becoming major drivers of country’s economic growth and development. In today’s fast paced life, seamless and comfortable travel experience is a boon for the people of satellite cities.
The need and demand for taxis is soaring in metros and big cities as companies, executives, tourists and affluent people prefer travelling via modern taxis that provide easy, elegant and safe travel experience. And with rapid urbanization, the demand for taxis is bound to increase for its convenience and speedier connectivity. Comments?