India Radio Taxi Services Market Analysis

Organized radio taxi services were introduced in India in early 2005, and by 2010, almost all radio taxi service providers in India operated through the owned assets model. According to the TechSci Research report, “India Radio Taxi Services Market Forecast & Opportunities, 2021”, radio taxi services market in the country is forecast to grow at a CAGR of over 17% during 2016-2021, on account of rising promotional activities by radio taxi operators, and need for enhanced safety and security features.

In 2011, radio taxi service companies commenced operations through the aggregator business model, consequent to which, the country’s radio taxi services market witnessed robust growth.  India radio taxi services market exhibited a CAGR of around 60%, in value terms, during 2011-2015.

With adoption of the new aggregator business model by radio taxi service providers, radio taxi services market in the country witnessed significant fleet expansion from 28.5 thousand units in 2011 to 288.8 thousand units in 2015.

India Radio Taxi Services Market Size, By Volume (Thousand Units) 2011-2015

                                                                                                                                             Source: TechSci Research

Rising demand for radio taxi services across the country is majorly attributed to surging disposable income and changing lifestyle, especially in urban centers across the country. Besides this, radio taxis offer hassle free travel experience to customers, as well as various other tangible and intangible offerings such as booking and payment convenience through mobile applications, air conditioning, 24×7 customer support, GPS enabled vehicles, etc. Rising radio taxi usage by individuals, corporates and tourists is also boosting demand for radio taxi services in India, which has led to radio taxi companies expanding their fleet size over the last few years.

Figure 2: India Radio Taxi Services - Business Models

                                                                        Source: TechSci Research

India Radio Taxi Services Market: Key Drivers

The India radio taxi services market is forecast to grow at a steady rate over the next couple of years. Lack of effective public transport options in most Indian cities is driving demand for affordable and comfortable radio cab services across the country.

Moreover, radio taxi operators offer a competitively priced alternative to three-wheelers and normal cabs plying across various Tier-I and Tier-II cities in India. A huge chunk of demand for radio taxis emanates from the corporate sector.

Enhanced security and a comfortable commute also lure working professionals to use radio taxi services instead of public transport and traditional taxis. Also, radio taxi booking through mobile applications has made cab booking a hassle-free process for Indian customers.

Companies such as Meru, OLA have witnessed huge surge in cab bookings through smartphone applications over the last few years. Increasing investments have also been assisting the service providers to upgrade their technology as well as their footprint across the country. 

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