Cab rental has become an integral part of everyday business or leisure travel. The initial idea for car rental services was to provide the ease and privacy of transporting the businessmen on their work trips, and now the concept has outgrown the purpose. The rising demand of cab rentals for inter-city and local travel for leisure purposes has fueled the growth of the market share in the national economy. The growing number of smartphone users and dependency on technology has also been one of the factors to contribute to the increasing cab rental market share.
Reasons for the Rising Demand of Cab Rentals:
According to reports, there’s a list of reasons responsible for the rise in adaptation of the cab rental services by the population.
- One of the key trends responsible for the change is the rise in the tourism sector, which ultimately means that tourists prefer to rent a cab to travel locally and between cities.
- Additionally, without the need for costs associated with the ownership of a vehicle and increased mobility, there’s a jump in the demand for cab rental services.
- Furthermore, airport transport emerging has led to an increased number of new entrants in the segment.
- Also, increased awareness about the environmental concerns and rising emission rate has influenced the car rental and car-pooling behavior resulting in fewer vehicles on the road.
Taking a look at the current statistics influenced by the recent trends, we notice that in the year 2016, the global car rental industry was worth 58 billion dollars and is expected to grow to 124.6 billion dollars by 2022. Until the year 2010, the market for car rental in India was unorganized and unregulated. People initially used local cab aggregators for traveling outstation, the scenario may have[E1] changed today, but there’s still a need for a platform that bridges the gap in inter-city transportation. There’s also a massive part of the profitable business that is still untapped in India that could be channeled with the availability of a proper aggregating platform.
The current market scenario is characterized as unorganized, unregulated, operationally intensive, and low margin. The availability and the right utilization of such platform will benefit the cab rental industry that has a vast potential, currently with the user penetration of only 1.7% (as of 2019) that is estimated to grow to 2.3% by 2023 (Statista: Car Rental India Statistics). The cab rental market is a lucrative industry to invest in, 90% of which remains potentially unorganized and waiting to be tapped in with effective technology-driven solutions.
Advantages of Cab Rental Services:
There are several advantages to this industry favored by its growth.
- Cost-Effectiveness- Customers save a lot of money with the rentals as compared to privately owned vehicles; thus, this method is preferred over the other.
- Low Maintenance- The limited to no maintenance cost associated with renting a cab is an upside to not owning a vehicle.
- Easy Availability- With the readily available options for rentals, customers can choose from a variety of vehicles to travel according to one’s own needs.
- Greater Accommodation- When traveling in larger groups, people get a range of options to choose over a regular five-seater car.
The concept of cab rental is growing in India with a breakneck pace. The trend is being adopted in the cities other than the metros, triggered by digital penetration. The readily available car rental software solutions have a brisk rate of growth and fast changing the face of the market. The technology-driven solutions provide a broader spectrum for the market, and its integration in business is helping overall customer experience. The unorganized 90% of the market is waiting to be tapped into, which can be done by the implementation of a technology-driven solution. To grow manifolds, a business needs to adapt to the trends in the market. Enabling a customer to book a cab with an app from a single screen will not only enhance the customer experience but also prove beneficial for the business.
Features that Will Boost The Cab Rental Business:
- GPS location tracking for smooth and accurate locations
- Estimated Time of Arrival (ETA) for the ride
- Driver details
- Cars availability in the proximity
- SOS button for emergencies
- One-time user registration and details
- Integration of all payment methods
- The customer feedback system for better reviewing and management
- Push notifications for real-time updates for customers
- Driver location tracking
- Smooth and easy boarding process
- Social media integration
Instead of differentiating based on price, cab rental businesses should create value for customers by utilizing a well-integrated cab rental solution that incorporates features that give them an edge over others.
With the technology-enabled cab bookings, available at the ease of our homes, it has become quite common for people to book or rent a car whenever they want and go wherever they need to go. The one-touch booking process enabled on the smartphones and tablets is empowering people with mobility like a child’s play. The integrated technology is not only favoring the customers but also helping businesses to expand and improve their customer experiences like never before. The small businesses that run offline like the local cab aggregators are also being hugely benefitted from the online cab rental solution with an easy registration process. The rise in the on-demand economy in India has made us witness the growth in the cab rental sector too, which has resultantly also led to unprecedented growth in the Indian overall economy. With cutting-edge features like 24*7 tech support and real-time location tracking, the sector is sure to bloom.