The Forecast of On-Demand Taxi Market Growth and Trends in India 2021 -2025


 
As everyone knew the bitter truth, the country known for the lowest car ownership among all other emerging countries is India. In the same way, it gives the jaw-dropping answer for the mobility needs in 2013, when the Uber had entered its footprints in India and launched its services in Bangalore.

Even though, the footprints of uber not made a wide change until the roll of OLA takes place. Later, 20% of bookings were made by the accurate app with broader coverage through desktops and laptops. To point out, India’s weak internet infrastructure and limited penetration of smartphones were the chief reason behind this.
 
In India 2013, the smartphone penetration was 6%, later it touched 28% by 2014. On the other hand, the fabulous metro cities have reached 60%-65% in the first quarter of 2015. And the smartphone penetration revolutionized, the revolution of the on-demand taxi market in India began.  
 
Market Dynamics
 
The data costs declination in India aided many low income & mid-income users to come and stay online for an extended duration which truly helped for the growth of the on-demand taxi market in India.
 
The rise of fuel prices had delivered a huge burden on the profitability of all commercial fleet operators in India. To mention, the incentive spending of Uber and Ola has gone down in parallel with the go up of commission rates. As the explosive growth of this market has cooled down now, both Ola and Uber stepped into food delivery services to generate new streams of revenue and further embellish their reach. 
 
Both Ola and Uber have overcharge during peak hours by surge pricing which drew a huge criticism and attention among the authorities of the transport regulatory from 2015 to 2016 where a ride costs 3/4 X of the regular prices. However, in 2019, it was smoothed out and till typically ranges between 50%-60%.
 
Market Size & Forecast
 
The Indian taxi market size was estimated at 1.9 million taxis which generated massive revenue in 2019. The arrival of on-demand taxi players has aid to organize this market to a great extent which is constant till.
 
Fine, let me describe you the forecast of the on-demand taxi booking market in India 2021 – 2025
 
The forecasting is derived from the key trends and features of the on-demand taxi market
 
(i) Enhanced demand from online channel
 
(ii) Simple booking through mobile apps and an online channel has attracted the customers significantly which makes them prefer online booking over offline booking. 
 
(iii) Besides, the app with stuffed features like drivers’ location tracking, driver contact, pre-estimated ride fare, and vehicle details have available within the app has increased the customers’ preference towards the online taxi booking option. 
 
To sustain in the growing trend of ridesharing service, local taxi operators have initiated to adopt the same strategies as well as trying to integrate the ride-sharing option in their respective taxi app development.
 
The Forecast of On-Demand Taxi Market Growth in India 2021 -2025
 
(i) In India, the taxi market stood at around $ 6.4 billion in 2016, and it is predicted to grow at 13.7% during 2017 – 2022, to reach $ 14.3 billion. 
 
(ii) Revenue in the ride-hailing and taxi segment is predicted to reach more than 12% of the current in 2022 and 2023
 
(iii) Revenue is expected to reach an annual growth rate (CAGR 2020-2024) 0f 19.1%, results in the market volume of more than 30% from the present by 2024. (Source: Statista )

(iV) The user penetration is 21.4% in 2020 and is expected to hit 22.5% by 2024.
 
Competitive Landscape
 
The Uber VS Ola is the right way to define the competitive landscape of the on-demand taxi market in India. Uber on the other hand has sold its Chinese and southeast Asian business to Didi and Grab respectively but is fully committed to the Indian market.
 
As well, the on-demand taxi booking in the future will lead to the following.
 
A. The growth of ride-sharing& ride-hailing in India in terms of volume and value will enhance. 
 
B. Share of cash and payment in the digital wallet.
 
C. Heals the major pain points of driver-partners
 
D. Competitive landscape and new operators’ opportunities 
 
E. Wide usage of taxis with sophisticated mobile applications.
 
Wrapping Up
 
Hope, you have grabbed the forecasting statistics of the on-demand taxi market 2021 – 2025. It is evident that starting a taxi booking business will reach better with high revenue. On the other hand, this is the reason behind many budding entrepreneurs to launch a taxi booking business. For those entrepreneurs, startupmart offers the best Uber Clone Script which is 100% customizable and stuffed with astounding features that make you a pioneer in the on-demand taxi booking market.
 
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