The Changing Face Of Cab Market In India
Cab service has become an everyday business/work activity. It has unknowingly become an integral part of everyone’s life. The increasing demand of cabs for leisure, intercity or local travel has resulted in huge growth of the market share in the national economy. The growing number of smart phone users and dependency on technology has also been one of the factors to contribute to the increasing cab market share.
Reasons for the Rising Demand of Outstation Cabs
According to reports, there’s a list of reasons responsible for the rise in adaptation of the outstation cab services:
- One of the key trends responsible for the change is the rise in the tourism sector, which ultimately means that tourists prefer a cab to travel locally and between cities.
- Without the need for costs associated with the ownership of a vehicle and increased mobility, there’s a jump in the demand for cab services.
- Airport transport has led to an increased number of new entrants in the segment.
- Increased awareness about environmental concerns and rising emission rate has influenced the cab services and car-pooling behavior resulting in fewer vehicles on the road.
Let’s take a look at the current statistics influenced by the recent trends. We have noticed that in the year 2016, the global cab industry was worth 58 billion dollars. It expects to grow to 124.6 billion dollars by 2022. Until the year 2010, the market for cabs in India was unorganized and unregulated. People initially used local cab aggregators for traveling outstation, the scenario may have 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. This needs channeling with the availability of a proper aggregating platform.
The current market scenario characterization is unorganized, unregulated, operationally intensive, and low margin. The availability and the right utilization of such platform will benefit the cab industry that has a vast potential. Currently, the user penetration of only 1.7% (as of 2019) that will grow to 2.3% by 2023 (Statista: Car Rental India Statistics). The cab market is a lucrative industry to invest in, 90% of which remains potentially unorganized. It still waits to tap in effective technology-driven solutions.
Advantages of Cab Services
There are several advantages to this industry favored by its growth.
Customers save a lot of money as compared to privately owned vehicles; thus, this method is preferred over the other.
No maintenance cost associated with a cab service is an upside to not owning a vehicle.
With the readily available options of cabs, customers can choose from a variety of vehicles to travel according to one’s own needs.
When traveling in larger groups, people get a range of options to choose over a regular five seater car.
The concept of cab services is growing in India at a breakneck pace. The trend is to adopt in the cities other than the metros, triggered by digital penetration. The readily available cab service software solutions have a brisk rate of growth and are 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 the overall customer experience. The 90% of the unorganized market is waiting to be tap into. The implementation of a technology-driven solution can achieve this. To grow manifolds, a business needs to adapt to the current trends in the market. Booking a cab with an app from a single screen will not only enhance the customer experience but also prove beneficial for the businesses.
Features That Will Boost the Cab Business
- GPS location tracking for smooth and accurate locations
- Estimated Time of Arrival (ETA) for the ride
- Driver details
- Car 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
Businesses should create value for customers by utilizing a well-integrated cab service solution that incorporates features that gives them an edge over the others. Beep establishes a platform for the unorganized sector of outstation cabs and helps streamline the process digitally. This helps travel operators serve their customers with the best of services.
With the technology-enabled cab bookings, available from the ease of our homes, it has become quite common for people to book or rent a car. The one-touch booking process with Beep 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.
The small businesses that run offline like the local cab aggregators are also hugely benefiting from the online cab solution. Beep comes with cutting-edge features like 24*7 tech support and real-time location tracking. It is the travel companion you were always looking for!
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