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UR Associates Research

Indian Car Rental Aggregator Market 2012 - Challenges and Growth Opportunities

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A “Sunrise Industry in India”, Indian Car Rental Aggregator Industry has grabbed the attention of Venture Capital and Private Equity Firms with many startups attracting Angel and VC funding

Major presence in Mumbai, Bangalore &

Delhi NCR,

Players – Ola Cabs, Saavari Car Rentals,

TaxiForSure, BookMyCab, YourCabs, Taxi Guide, GetMeCab

Estimated current market size – XX cabs

Estimated current market value – Rs X bn

New taxis registrations in India (2006-11)

Indian car rental aggregator market outlook

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

2006 2007 2008 2009 2010 2011

Nos

Net registrations % growth

The car rental industry is predominantly anunorganized market with organized players havingless than X% of the market share. We expect theindustry to become more organized and operate withhigher efficiency mainly driven by car rentalaggregators. There were about xxxx cars registered astaxis in India during the period March 2006 - March2011. The number of new registrations has grown at aCAGR of x.x% during the period March 2006 - March2011.

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Since cars are …… by the car rental aggregators…… The business is characterizedby high ….. Please read our industry report for further details.

Please read ourindustry report forfurther details


Please read ourindustry reportfor further details




Business model

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Revenue model

Revenue model A Revenue model B

This is the most common revenue modeladapted by all the cab rental aggregators

• Advantages of this model• Disadvantages of this model

This is an unique revenue model adapted bya cab rental aggregator. In this model the caraggregator xxxx by xxxx to the caroperator/driver.

• Advantages of this model• Disadvantages of this model

Illustration of revenue model B

Case I Case II Case III

Particular A XXXX XXXX XXXX

Particular B x% x% x%

Particular C XXXX XXXX XXXX

Particular D xx xx xx

Particular E XX XX XX

Particular F XXXX XXXX XXXX

Particular G XXXX XXXX XXXX

Particular H XXXX XXXX XXXX

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Car rental aggregator market – industry estimates

The car rental aggregator market is a nascent market and has about XXXX cabs under itsnetwork which is less than X% of the total car rental market in volume terms. We have done ageneral analysis on what could be the size of this industry and where it is headed.

We expect the current industry size by value to be between Rs XXX–XXX mn and the utilizationrate to be in the range of XX-XX%. We estimate that the car rental aggregator industry would beabout XXXX cabs by CY18 and expect the utilization rate of cabs to improve to xx%.

Fleet Size /

utilization rate

35% 45% 55% 65% 75% 85%

CY12 XXXXX xxx xxx xxx xxx xxx xxx






CY18 XXXXX xxx xxx xxx xxx xxx xxxSam

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All the companies are still in their early stages and are not generating much interms of revenue. However, the companies are expanding at a rapid pace.

Overview of major players

Company Start date Cities Fleet size Investors Invested

Amount

Stake

acquired

(%)

Ola Cabs Year xxxx X XX XXX Rs x million x%

Savaari Year xxxx X XX XXX Rs x million x%

TaxiForSure Year xxxx X XX XXX Rs x million x%

TaxiGuide.in Year xxxx X XX XXX Rs x million x%

Bookmycab.com Year xxxx X XX XXX Rs x million x%

Yourcabs.com Year xxxx X XX XXX Rs x million x%

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Aggregators website traffic study

We have tried to assess the popularity of the car rental aggregator websites usingweb analytics and have made some interesting observations. Please read theindustry report for further details.

Company Traffic Rank in

India

Average Load Time

(seconds)

Estimated daily time

on site (mm:ss)

Site Reputation Comments

Olacabs.com XXXX x.x 0:00 X Please read our industry

report for details

Savaari.com XXXX x.x 0:00 X Please read our industry

report for details

TaxiForSure.in XXXX x.x 0:00 X Please read our industry

report for details

TaxiGuide.in XXXX x.x 0:00 X Please read our industry

report for details

Getmecab.com XXXX x.x 0:00 X Please read our industry

report for details

Yourcabs.in XXXX x.x 0:00 X Please read our industry

report for details

Bookmycab.com XXXX x.x 0:00 X Please read our industry

report for details

Carzonrent XXXX x.x 0:00 X Please read our industry

report for details

Redbus XXXX x.x 0:00 X Please read our industry

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Increasing urbanization and growth in affordability……..

Please read our industry report for further details.

Demand drivers & growth opportunities

City Census 2011 Census

2001

%

addition

%

growth

City A XXXX XXXX XXXX x%

City B XXXX XXXX XXXX x%

City C XXXX XXXX XXXX x%

City D XXXX XXXX XXXX x%

Total XXXX XXXX XXXX x%

XXXX

XX XXXX

XXXX

X%X% X%

X%X% X%

X%

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2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12

Rs

Per capita income (at constant prices) GDP growth rate

Favourable economic indicators – per capita income and GDP growth

Rise in population in major cities (2001-11)

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Rise in foreign tourist arrivals and ………

Domestic tourist visits to all States/UTsForeign tourist arrivals (FTAs) in India

X X XX

X XX X X

X X

X

-10%

-5%

0%

5%

10%

15%

20%

25%

30%

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

million

FTAs in India % increase

XX X

X XX X

XX

XX

0%2%4%6%8%10%12%14%16%18%20%

0100200300400500600700800900

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 (P)

million

Domestic tourists vists to States/Uts % change


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Airport passengers are ………

International passenger throughput forecastsDomestic passenger throughput forecasts


FY 02 FY 07 FY 11 FY 17E

X

X

X

X

Million

Domestic Passenger Throughput Forecast

FY 02 FY 07 FY 11 FY 17E

X

X

X

XMillion

International Passenger Throughput ForecastSample

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Please read our industry report to get insights on the challenges faced by the car rental aggregators in carrying out their operation

Scalability is the major challenge

due to Please read our industry report for further details

Industry will face intense competition

due to Please read our Industry report for further details

Attracting customers in the

early stages

leading to Please read our Industry report for further details

Current and potential challenges

Maintaining service standards

leading to Please read our Industry report for further details

Dearth of experienced

professionals

leading to Please read our Industry report for further detailsSam

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While the radio cab industry has been growing strongly over the last 5 years, the car rentalaggregator industry has just started with many startups entering the market.

Huge demand exists for both industries to grow, however the competition is expected to intensify in the future

Please read our industry report for further details

Radio cab operators Vs Car rental aggregators

Please read our industry report for further details

Advantages over radio cab companies Disadvantages over radio cab companies

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Centralised software will increase efficiency

This industry is in its infancystage with 6-7 playerscurrently. As demand isexpected to grow, new entrantscannot be ruled out. Since thecars mostly operate on a……Hence, it will be difficult for theaggregators to ensure that……

Please read our industry reportfor further details.

Centralised software that provides real time inventory could assist in driving efficiency and better services to the customers

There may be instances that a similar ……….. Please read our industry report for further details

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We are only presenting OLA CABS profile in the presentation, all other company profiles are prepared on similar lines.

Please Read Our Industry Report For Further Details

Company profiles

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Launched: Month 20XX

Area of operations:City A, City B and City C

Existing PE/VCs: XXX Fund

Ola cabs launched its operations in Month 20XX and is the biggest car rental aggregator company in Mumbai.The company was started by XYZ and ABC, with an aim to solve the inter-city and intra-city travel hassles ofpeople.

Company highlights

One of the first entrant in the car rental aggregator industry.

Strong presence in City A, expanded operations in City B and

City C

Strong focus on technology to enhance the customer

experience and to improve the operational efficiency of the

company

Has received funding of ~Rs X mn which will enable it to growfaster than peers

Company profile – Ola Cabs

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Share capital XXX Fund holding


XXXXXXX

XXX

Equity shares Series A Preference shares

Series B Preference shares

(x.x%)

(x.x%)

(x.x%)

Units Value

No. of equity sharesNos XXX

Nominal amount per shareRs X

Premium/(Discount) amount per share Rs XXXX

Total amount for equity share Rs mn XX

No. of preference shares allotted Nos XXXX

Nominal amount per share Rs XXXXX

Premium/(Discount) amount per share Rs XXXX

Total amount for preference shares Rs mn XXX

Total amount paid Rs mn XXX

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Bhavish Aggarwal: Bhavish drives thecompany's vision and manages customer andpartner relations.Ankit Bhati: Ankit heads the technical aspects ofOla Cabs, ensuring a quick, convenient andinstinctive experience for the customers andpartners.Maneesh Mittal: Maneesh joined the firm in June2012 and heads the Operations of the company.He is responsible for building the operations unitthat helps in effective allocation of cabs.

Ola Cabs has branded its point-to-point taxis as a part of their advertising strategy.Please read our industry report for further details.


ManagementOperations

Ola Cabs currently operates in:• City A: started in month 20XX• City B: started in month 20XX• City C: started in month 20XX

The company provides services in:• Point-to-point• Local rental – half & full day• Outstation services

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Key strength: strong focus on technology

Ola Cabs is a technology driven company.The company leverages its strongtechnology expertise for providing betterand convenient user interface. Using itsnewly launched mobile application theusers can book a cab in one touch.

Ola Cabs has a lot of emphasis ontechnology to forecast……………..Please readour industry report for further details.

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Revenue model

Ola Cabs initially started with therevenue model A in which it xxxxxx.While the company still follows therevenue model A, it is aggressivelypushing its revenue model B.

Please read our industry report forfurther details.

Growth strategy

The company is growing aggressivelyalthough on a small base. It has a targetto ……….

Please read our industry report forfurther details.

Challenges and potential risks

• In order to grow aggressively Ola Cabs is xxxxxx• Maintaining its xxxxxx• Ola Cabs plans to scale up xxxxxx


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Disclaimer:

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form orby any means, electronic, mechanical, print, publishing, photocopying, recording or otherwise without the permission of URAssociates. Any unauthorized act in relation to all or any part of the material in this publication may call for appropriatestatutory proceedings.

The information contained herein is confidential and is intended solely for the addressee(s). Any unauthorized access, use,reproduction, disclosure or dissemination is prohibited. The information and opinions on which this communication is basedhave been complied or arrived at from sources believed to be reliable and in good faith, but no representation or warranty,express or implied, is made as to their accuracy, correctness and are subject to change without notice. Certain mattersdiscussed in this Document may contain statements that are individually and collectively forward-looking statements. Suchforward-looking statements are not guarantees of future performance and are subject to known and unknown risks,uncertainties and assumptions that are difficult to predict. Recipient/s should consider this report only for informationpurpose. The information enclosed in the report has not been vetted by the compliance department due to the time sensitivityof the information/document. UR Associates shall not assume any legal liability or responsibility for any incorrect, misleadingor altered information contained herein.

Please read our industry report to get in-depth insight of the Indian Car RentalAggregator Market, the Growth Drivers, Challenges, Company profiles, IndustrySize and expected growth.

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Documents

UR Associates Researchurassociates.in/wp-content/uploads/2012/10/Indian-Car-Rental... · UR Associates Research. ... Case I Case II Case III ... general analysis on what could be