App-based cabs like Ola, Uber preferred choice for commuters as personal vehicles take a back seat

By: |
February 25, 2020 7:58 PM

The ride-hailing market size in India is estimated to be around $36.9 billion in 2020 and is likely to increase to $54 billion by 2023 growing at a CAGR of 13.5 per cent.

Less travel time, reliability and availability were the three top reasons cited by respondents for choosing app-based cabs. (File Photo)

App-based cab booking service offered by companies such as Ola and Uber is the preferred choice for commuters in the Delhi-NCR region as 35 per cent of the people commuting in the region has cab booking apps as the most frequently used mode of private transport, according to a survey of 1,377 commuters in Delhi NCR by think tank Cuts International. This was followed by traditional auto-rickshaws being preferred by 23 per cent of the respondents while 21 per cent still had personal vehicles including four and two-wheelers as the preferred route to commute.

“Non-app based taxis which are usually hailed through calling the local taxi stand or contacting the driver directly over the phone or hailed from a taxi stand/ hub also seem to be a preferred choice, but only to a limited extent,” the survey revealed. In terms of public modes of transport, metro dominated commuters preference with 88 per cent share followed by 8 per cent choosing public buses.

Also read: OYO competitor FabHotels sees hotels checking out

Less travel time, reliability and availability were the three top reasons cited by respondents for choosing app-based cabs while less cost, availability, and less travel time were the reasons for respondents who had personal vehicles and non-app auto-rickshaws as their favourite commuting modes. “The importance of non-price factors, especially travel time, reliability and availability, is also indicative of the importance of cross-group network effects generated by such platforms,” the survey titled An Evidence-Based Analysis of Relevant Market — The Case of Ridesharing in Delhi NCR said. On the other hand, reliability and availability in particular of app-based services are “supply-induced reasons” and thus are likely to be directly linked to the critical mass of drivers available with app-based services at all relevant times.

The ride-hailing market size in India is estimated to be around $36.9 billion in 2020 and is likely to increase to $54 billion by 2023 growing at a CAGR of 13.5 per cent, as per Statista. Currently, the average revenue per user (ARPU) is $178.22 in India with the overall number of users this year to be 20.7 crores.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Amazon says B2B orders up 108% during festive week from year-ago; 50% came from Tier-II, III cities
2Vedanta launches initiative to rope in startups for exploring growth opportunities
3IBM’s Ajay Mittal: MSMEs not far behind in tech adoption, it’s just that focus areas, scale are smaller