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Radio Cab Market IndiaRadio Cab Market ‐ India
Oct 2013
Executive Summary
Market
Radio cab market is growing at a1% CAGR and is slated to grow at a CAGR of a2% annually in futureBusiness model can be differentiated into 2 different fleet categories – company‐owned and franchised fleetRevenues are garnered for this particular sector through 2 significant heads namely fares andRevenues are garnered for this particular sector through 2 significant heads namely fares and advertisements
Drivers &
Drivers– Increase in disposable income and transportation related expensesInflux of tourists
Challenges–High fares–TRAI regulation on SMS capU il bilit f kiDrivers &
Challenges– Influx of tourists–Demand from corporate sector–Change in consumer mindset–Economic slowdown acts as an indirect stimulant
–Unavailability of parking space
Hard and soft skills’ training for cab drivers Increased entertainment options inside radio cabs Radio cabs with Wi‐Fi servicesCollaborations with other service providers
Trends
PE investments in the sectorTechnological advancements in radio cabsExclusive radio cabs for women Loyalty programs launched by radio cab operators
CompetitionMajor Players
Carzonrent Mega Cabs Meru Cabs
pmarking the sector
pAdvent of mobile apps
2
Metro Cabs Quick Cabs Tab Cabs
RADIO CAB MARKET IN INDIA 2013.PPT
•Macro‐Economic Indicators•Introduction•Introduction•Market Overview•Business Model•Revenue Model•Cost AnalysisD i & Ch ll•Drivers & Challenges•Government Participation •Trends•Competition•Strategic Recommendations
d
3
•Appendix
RADIO CAB MARKET IN INDIA 2013.PPT
Economic Indicators (1/3)
a2a1
INR tn
14b4c4b3
GDP at Factor Cost: Quarterly
d3
a2b2c2
d2
a1b1
c1
d1
13
12
11
d4c3
Q2Q110
Q4Q32012‐132011‐122010‐112009‐10
Inflation Rate: Monthlyy
0.8
1.0%
ca
0.2
0.4
0.6
0.8
edb
4
0.0Mar 2013 ‐ Apr 2013Feb 2013 ‐Mar 2013Jan 2013 ‐ Feb 2013Dec 2012 ‐ Jan 2013Nov 2012 ‐ Dec 2012
SANITARYWARE MARKET IN INDIA 2013.PPT
SAMPLEKey determinant in catapulting radio cabs towards more off‐take is its demand supply aggregationSAMPLE
The primary differentiator between traditional and radio cabs is that of the demand and supply aggregation
Demand – supply aggregation
aggregation
•Point 1P i t2•Point2
•Point 3•Point 4
Demand Supply
•Demand 1•Demand 2
•Supply 1•Supply 2
5RADIO CAB MARKET IN INDIA 2013.PPT
SAMPLEEase of booking and quality customer service work towards shaping growth for radio cabs in the country SAMPLE Radio Cab Market – Overview
•Radio cabs business have emerged as one of the fastest growing businesses in India•Presently it is growing at a rate of b1% and is slated to grow at a rate of b3% in future•Presently, it is growing at a rate of b1% and is slated to grow at a rate of b3% in future•Demand for radio cabs is soaring in India especially in large cities including metros where people have enough spending power to avail of such services
•Governments across different states are also encouraging growth of this sector as they believe that efficient transport service is essential for any province to growtransport service is essential for any province to grow
•Another facet in this sector is the generation of revenues through advertisements which has now developed as a major component in the OOH category
Radio Cab Market – Growth
Unit no
f
c
g fe
dba
6
020‐‐20‐‐20‐‐20‐‐20‐‐20‐‐
RADIO CAB MARKET IN INDIA 2013.PPT
Radio Cabs – Fleet Expansion slated for FY 2014
Proposed fleet expansion is on the cards for radio cab operators
c1 Cabs c2 Cabs
Unit nor
ppt
uUnit no
s
0Planned For FY 2014Current
0Planned For FY 2014Current
c3 Cabs c4 cabs
Unit noo
Unit no wz
0
o
Planned For FY 2014
n
Current
m
0Planned For FY 2014Current
y
7
Planned For FY 2014Current Planned For FY 2014Current
RADIO CAB MARKET IN INDIA 2013.PPT
Business Model – Summary
Company‐owned Cabs Franchise
Business
Model
Attached Vehicle Rent‐a‐Cab
8RADIO CAB MARKET IN INDIA 2013.PPT
SAMPLE… however, a close look divulges that there exists another head which sources revenues as wellSAMPLE
Subscription Fees
Components of Revenue
Revenue Break‐up (2012)
•Point 1•Point 2 onm
Advertising Revenueo1
n1
•Point 1•Point 2
•Point 1
Cab Booking Charges
m1
9
•Point 2
RADIO CAB MARKET IN INDIA 2013.PPT
SAMPLEAdvertising – Tariff
SAMPLE Advertising in a Radio Cab in India
Types Cities Mumbai Delhi Bengaluru Hyderabad
External Branding
4‐door panels
Luggage Boot
Internal Branding
Seat Covers
Leaflet
Bill Rolls
Backside Branding
Product SamplingProduct Sampling
Samples Inside cab
Road Show
10
3‐4 hours show of cabs
RADIO CAB MARKET IN INDIA 2013.PPT
Drivers & Challenges – Summary
Drivers
Increase in disposable income and
ChallengesIncrease in disposable income and transportation related expenses
Influx of tourists
High fares
TRAI regulation on SMS cap
Demand from corporate sector
Change in consumer mindset
Unavailability of parking space
Economic slowdown acts as an indirect stimulant
11RADIO CAB MARKET IN INDIA 2013.PPT
BPO sector has emerged as the torchbearer for radio cabs as they constitute a fair percentage of revenue share
Demand from corporate sector Impact• IT and ITeS concerns who have pick up and drop facility require a constant supply of cabs at their disposalF th f i th t h k hift i ll f i ht hift it b d t f•Further, for companies that have work shifts especially for night shifts, it becomes mandatory for them to ply cars to pick up and drop employees
•Radio cabs derive a fair amount of revenues from this facet of supplying cabs to these concerns•Revenues get translated into a fixed income in this aspect wherein demand for radio cabs are always constantalways constant
IT/BPO – Exports Indian BPO Market Share – Global Perspective
IT/BPO Sector – India
hi
INR bn
IT/BPO Exports Indian BPO Market Share Global Perspective
i
k
j
0
h
g
i jText text text
12
020‐‐ 20‐‐
RADIO CAB MARKET IN INDIA 2013.PPT
20‐‐ 20‐‐
Trends – Summary
Hard and soft skills’ training for cab drivers
Increasing entertainment options inside radio cabsIncreasing entertainment options inside radio cabs
Radio cabs with Wi‐Fi service
`Key Trends PE investments in the sector
Collaborations with other service providers marking the sector
E l i di b f
Technological advancements in radio cabs
Exclusive radio cabs for women
Loyalty programs launched by radio cab operators
13RADIO CAB MARKET IN INDIA 2013.PPT
Advent of mobile apps
SAMPLEPrivate: Domestic Company – Company 1 (1/6)SAMPLE Company Information Offices and Centres – India
Registered Address
Tel No.
Fax No.
W b i
New Delhi
Products and Services
Website
Year of IncorporationRegistered Address
Key People
Products and Services
N D i ti
Category Products/Services
Name Designation
Person 1 CEO
Person 2 Vice President (Ops)
Person 3 Vice President (Mktg)
14
Person 4 Director
RADIO CAB MARKET IN INDIA 2013.PPT
SAMPLEPrivate: Domestic Company – Company 1 (2/6)SAMPLE Shareholders of the Company Ownership Structure
Name No. of Shares held r1p1s1q1
Person 1
Person 2
s2
Person 3
Person 4q2
r2
s2
Person 4
Person 5
p2Person 6
Person 7
T t l
p2
15
Total
RADIO CAB MARKET IN INDIA 2013.PPT
SAMPLEi i l S h K i
Private: Domestic Company – Company 1 (3/6)SAMPLE Financial Snapshot Key Ratios
Particulars y‐o‐y change (2012‐11) 2012 2011 2010 2009
Profitability RatiosOperating Margin
Net Profit/LossTotal Income
INR mn INR mnj2i2
h2g2 Net MarginProfit Before Tax MarginReturn on EquityReturn on Capital EmployedReturn on Working CapitalReturn on Assets
j1i1h1
g2
g1
Financial Summary
Return on Fixed Assets
Cost RatiosOperating costs (% of Sales)Administration costs (% of Sales)
Interest costs (% of Sales)
002012201120102009
• Company incurred a net profit of INR ‐‐mn in FY 20‐‐, as compared to net profit of INR ‐‐mn in FY 20‐‐
• It reported total Income of INR ‐‐mn in FY 20‐‐, registering an increase of ‐‐% over FY 20‐‐
Interest costs (% of Sales)Liquidity RatiosCurrent RatioCash RatioLeverage RatiosDebt to Equity Ratio
• Earned an operating margin of ‐‐% in FY 20‐‐, an increase of ‐‐ percentage points over FY 20‐‐
• The company reported a debt to equity ratio of ‐‐ in FY 20‐‐, an increase of ‐‐% in FY 20‐‐
Debt to Capital RatioInterest Coverage Ratio
Efficiency RatiosFixed Asset TurnoverAsset TurnoverCurrent Asset Turnover
16
Current Asset TurnoverWorking Capital TurnoverCapital Employed Turnover
Improved Decline
RADIO CAB MARKET IN INDIA 2013.PPT
SAMPLEPrivate: Domestic Company – Company 1 (4/6)SAMPLE Key Recent Developments (1/2)
Description News
Overview
•Has a presence in cities such as city 1, city 2
•Has its presence in ‐‐cities and ‐‐major airports and has future plans of expanding in other cities as well
• Its fleet includes cars such as car 1 car 2 car 3 car 4• Its fleet includes cars such as car 1, car 2, car 3, car 4
• Boasts of an unique amalgamation of online deals on an offline platform through l1• L2 is available in around l3 cabs in Mumbai itself
In‐taxi deals • L2 is available in around l3 cabs in Mumbai itself• L4 works through a tablet• Has recently announced of providing prompt and timely services and a promise of providing a free ride worth INR ‐‐ in case it misses to fulfill its commitment
Latest Events•Has tied up with l5, the manufacturer of the l6 Initially, l7 electric cars will be available in each of these cities that can be booked on phone like any other cab, along with additional options of online booking This experience of a self drive will cost INR ‐‐ for a period of l8 and will began from l9
17
p p g
RADIO CAB MARKET IN INDIA 2013.PPT
SAMPLEPrivate: Domestic Company – Company 1 (5/6)SAMPLE Key Recent Developments (2/2)
Description News
•Has announced the acquisition of online car rental service aggregator l10 wherein it is onAcquisition
•Has announced the acquisition of online car rental service aggregator l10 wherein it is on the lookout for working on enhanced technology platforms to process a retail venture
• Both l11 and l12 will be working together to introduce new product offerings
• Has introduced l13 for different platforms which would enable consumers to book radio cabs through mobile phones
Technological add‐ons
cabs through mobile phones• Customers can also create and manage their profiles, reserve a cab, tag frequently travelled locations as favorites, view history of last reservations, modify and even cancel reservations
• Additionally, new features will also enable customers to track the location of their booked b l id li t ffi i f ti th b k th l14cabs as also provide live traffic information once they book a car on the l14
18RADIO CAB MARKET IN INDIA 2013.PPT
SAMPLEPrivate: Domestic Company – Company 1 (6/6)SAMPLE •Text 1 •Text 3•Text 2 •Text 4
WS
TO
WS
•Text 7•Text 8•Text 5
T 6
TO
e 8•Text 6
19RADIO CAB MARKET IN INDIA 2013.PPT
Thank you for the attentionThe Radio Cab Market – India 2013 report is part of Netscribes’ Services Industry Series.For any queries or customized research requirements, contact us at:
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Disclaimer: This report is published for general information only Although high standards have been used in the preparation “Netscribes” is
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Disclaimer: This report is published for general information only. Although high standards have been used in the preparation, Netscribes is not responsible for any loss or damage arising from use of this document. This document is the sole property of Netscribes and prior permission is required for guidelines on reproduction.
RADIO CAB MARKET IN INDIA 2013.PPT
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