Indian Radio Cab Market 2012 - Challenges and Growth opportunities
BRIEF SUMMARY
Indian Radio Cab industry is a Sunrise industry characterized by huge demand, high growth rates and plenty of buzz. It is an organized industry which was started to solve the intra city commuting problem of people. Although it originated many years back, the industry really took off in 2006-07 when Meru Cabs and Easy Cabs started their operations and expanded their fleet in a big way. Over a span of five years, the industry reached the size of ~xx radio cabs mainly concentrated in Mumbai, Delhi NCR, Bangalore and Hyderabad. In terms of value, the Indian Radio Cab market is worth Rs x.x billion. The industry is dominated by four companies, Meru Cabs, Easy cabs, Mega cabs and Tab cabs who have cumulatively garnered x% market share.
Even after reaching xx cabs, the demand far outstrips the supply. The ever growing population of the major cities, increasing income levels of middle class population, the strained public transport system (local trains, buses) which are running at more than 100% capacity, the rising traffic woes in large cities (long waiting time on roads because of traffic jams, difficult driving conditions because of heavy traffic) and private companies offering reimbursement of taxi fares to their employees are all the factors that have resulted in more and more people opting for radio cab services.
Though the demand is huge, the industry is plagued by supply side constraints which are hindering its growth. Dearth of availability of quality drivers, delay in obtaining permits in certain cities like Mumbai, lack of government guidelines for running radio cabs in certain states/cities, higher maintenance expenses are some of the problems that the radio cab companies are grappling with, which is restraining them from expanding rapidly.
KEY HIGHLIGHTS AND UNIQUENESS OF THE REPORT
The radio cab industry appears to a very attractive industry with ample growth opportunities from outside. However, this industry is marred with various operational as well as competitive challenges which has prevented the industry from being profitble till date.
PLEASE READ OUR SAMPLE PRESENTATION AND TABLE OF CONTENTS TO UNDERSTAND THE INFORMATION PROVIDED IN OUR REPORT
METHODOLOGY
This report is prepared from in-depth primary and secondary research. We have met all the stakeholders including the top managment of radio cab companies, drivers, union leaders, company staff, customers and government authorities for the purpose of our report. Seconday research includes information from company websites, company filing in goverment database, press releases, news articles and information from other multiple sources.
Indian Radio Cab industry is a Sunrise industry characterized by huge demand, high growth rates and plenty of buzz. It is an organized industry which was started to solve the intra city commuting problem of people. Although it originated many years back, the industry really took off in 2006-07 when Meru Cabs and Easy Cabs started their operations and expanded their fleet in a big way. Over a span of five years, the industry reached the size of ~xx radio cabs mainly concentrated in Mumbai, Delhi NCR, Bangalore and Hyderabad. In terms of value, the Indian Radio Cab market is worth Rs x.x billion. The industry is dominated by four companies, Meru Cabs, Easy cabs, Mega cabs and Tab cabs who have cumulatively garnered x% market share.
Even after reaching xx cabs, the demand far outstrips the supply. The ever growing population of the major cities, increasing income levels of middle class population, the strained public transport system (local trains, buses) which are running at more than 100% capacity, the rising traffic woes in large cities (long waiting time on roads because of traffic jams, difficult driving conditions because of heavy traffic) and private companies offering reimbursement of taxi fares to their employees are all the factors that have resulted in more and more people opting for radio cab services.
Though the demand is huge, the industry is plagued by supply side constraints which are hindering its growth. Dearth of availability of quality drivers, delay in obtaining permits in certain cities like Mumbai, lack of government guidelines for running radio cabs in certain states/cities, higher maintenance expenses are some of the problems that the radio cab companies are grappling with, which is restraining them from expanding rapidly.
KEY HIGHLIGHTS AND UNIQUENESS OF THE REPORT
- This report is the first report on this industry that has in-depth focus on the challenges and potential risks.
- The report provides the historical financial performance of all the major radio cab companies.
- In order to aid investors, after in-depth analysis we have built the future financial estimates and growth in fleet size of all the major radio cab operators.
- We have also rated the companies on various key parameters to judge the standings of the companies vis-a-vis peers.
- The report also contains our key suggestions to the industry.
The radio cab industry appears to a very attractive industry with ample growth opportunities from outside. However, this industry is marred with various operational as well as competitive challenges which has prevented the industry from being profitble till date.
- This is a comprehensive 75 pages research report which aims at highlighting the challenges and growth opportunities in detail and covers the point of view of all the stake holders.
- This report provides information about the current size of the industry in volume and value terms and our future estimates of the same till 2017.
- It also contains historical financials as well as future financial estimates for the benefit of the investors.
- The report also focuses on potential risks that the industry and companies may encounter in the future.
- If needed by the buyer we can have a one-to-one meeting or a telephonic conversation with them to provide any further clarifications and any update/information required.
- The authors of this report have strong credentials in the field of equity research and industry research and have prepared this research product keeping the mindset of investors in view.
PLEASE READ OUR SAMPLE PRESENTATION AND TABLE OF CONTENTS TO UNDERSTAND THE INFORMATION PROVIDED IN OUR REPORT
METHODOLOGY
This report is prepared from in-depth primary and secondary research. We have met all the stakeholders including the top managment of radio cab companies, drivers, union leaders, company staff, customers and government authorities for the purpose of our report. Seconday research includes information from company websites, company filing in goverment database, press releases, news articles and information from other multiple sources.
EXECUTIVE SUMMARY
1 RADIO CAB INDUSTRY OVERVIEW
1.1 Radio cab market outlook
1.2 Business model
1.3 Radio cab fares vary from city-to-city
1.4 Overview of major radio cab players
2 DEMAND DRIVERS & GROWTH OPPORTUNITIES
2.1 Huge demand exists for Radio cabs
2.2 Favourable factors for growth
2.3 Airport passengers are major customers for radio cabs
2.4 The big four need another xxxx―xxxx more cabs to meet the current demand
2.5 Many large cities like xx, xx, xx and xx are relatively untapped
2.6 Comparitive analysis of avg. monthly income of radio cab and B&Y taxi drivers
3 CURRENT AND POTENTIAL CHALLENGES
3.1 Availability of cab drivers a major hindrance for fleet expansion
3.2 Radio cab industry: An operational behemoth with significant challenges
3.3 A highly regulated market
3.4 Online car aggregators will pose major competition in the long run
3.5 Economy radio cabs in NCR – The business model is yet to be successful
4 FINANCIAL ESTIMATES
4.1 High operating expenses and interest costs to limit profit growth
5 COMPANY PROFILES
5.1 Meru cabs
5.1.1 Background
5.1.2 Group Structure
5.1.3 Ownership
5.1.4 Board of Directors
5.1.5 Management
5.1.6 Cabvertise: An important driver for growth in the future
5.1.7 SWOT analysis
5.1.8 Financial performance
5.1.9 Revenue forecasts
5.1.10 Key balance sheet items
5.1.11 Potential risks
5.2 Easy cabs
5.2.1 Background
5.2.2 Fleet type
5.2.3 Partners
5.2.4 Group Structure
5.2.5 Ownership
5.2.6 Board of Directors
5.2.7 Management
5.2.8 Revenue model
5.2.9 Advertisement: An important driver for growth in the future
5.2.10 SWOT analysis
5.2.11 Financial performance
5.2.12 Revenue forecasts
5.2.13 Key balance sheet items
5.2.14 Potential risks
5.3 TABcab
5.3.1 Background
5.3.2 Group Structure
5.3.3 Ownership
5.3.4 Board of Directors
5.3.5 Managing team
5.3.6 Revenue model
5.3.7 Advertisement: An important driver for growth in the future
5.3.8 SWOT analysis
5.3.9 Revenue forecasts
5.3.10 Potential risks
5.4 Mega cabs
5.4.1 Background
5.4.2 Group companies
5.4.3 Ownership
5.4.4 Board of Directors
5.4.5 Management
5.4.6 SWOT analysis
5.4.7 Financial performance
5.4.8 Revenue forecasts
5.4.9 Key balance sheet items
5.4.10 Potential risks
5.5 Super Cabz
5.5.1 Background
5.5.2 Super Cabz business model
5.5.3 Cab advertising
5.5.4 Revenue forecasts
5.5.5 Potential risks
6 COMPANY STANDINGS & UR ASSOCIATES SUGGESTIONS
6.1 Company standings and UR Associates research suggestions to the industry
1 RADIO CAB INDUSTRY OVERVIEW
1.1 Radio cab market outlook
1.2 Business model
1.3 Radio cab fares vary from city-to-city
1.4 Overview of major radio cab players
2 DEMAND DRIVERS & GROWTH OPPORTUNITIES
2.1 Huge demand exists for Radio cabs
2.2 Favourable factors for growth
2.3 Airport passengers are major customers for radio cabs
2.4 The big four need another xxxx―xxxx more cabs to meet the current demand
2.5 Many large cities like xx, xx, xx and xx are relatively untapped
2.6 Comparitive analysis of avg. monthly income of radio cab and B&Y taxi drivers
3 CURRENT AND POTENTIAL CHALLENGES
3.1 Availability of cab drivers a major hindrance for fleet expansion
3.2 Radio cab industry: An operational behemoth with significant challenges
3.3 A highly regulated market
3.4 Online car aggregators will pose major competition in the long run
3.5 Economy radio cabs in NCR – The business model is yet to be successful
4 FINANCIAL ESTIMATES
4.1 High operating expenses and interest costs to limit profit growth
5 COMPANY PROFILES
5.1 Meru cabs
5.1.1 Background
5.1.2 Group Structure
5.1.3 Ownership
5.1.4 Board of Directors
5.1.5 Management
5.1.6 Cabvertise: An important driver for growth in the future
5.1.7 SWOT analysis
5.1.8 Financial performance
5.1.9 Revenue forecasts
5.1.10 Key balance sheet items
5.1.11 Potential risks
5.2 Easy cabs
5.2.1 Background
5.2.2 Fleet type
5.2.3 Partners
5.2.4 Group Structure
5.2.5 Ownership
5.2.6 Board of Directors
5.2.7 Management
5.2.8 Revenue model
5.2.9 Advertisement: An important driver for growth in the future
5.2.10 SWOT analysis
5.2.11 Financial performance
5.2.12 Revenue forecasts
5.2.13 Key balance sheet items
5.2.14 Potential risks
5.3 TABcab
5.3.1 Background
5.3.2 Group Structure
5.3.3 Ownership
5.3.4 Board of Directors
5.3.5 Managing team
5.3.6 Revenue model
5.3.7 Advertisement: An important driver for growth in the future
5.3.8 SWOT analysis
5.3.9 Revenue forecasts
5.3.10 Potential risks
5.4 Mega cabs
5.4.1 Background
5.4.2 Group companies
5.4.3 Ownership
5.4.4 Board of Directors
5.4.5 Management
5.4.6 SWOT analysis
5.4.7 Financial performance
5.4.8 Revenue forecasts
5.4.9 Key balance sheet items
5.4.10 Potential risks
5.5 Super Cabz
5.5.1 Background
5.5.2 Super Cabz business model
5.5.3 Cab advertising
5.5.4 Revenue forecasts
5.5.5 Potential risks
6 COMPANY STANDINGS & UR ASSOCIATES SUGGESTIONS
6.1 Company standings and UR Associates research suggestions to the industry
LIST OF FIGURES
Figure 01: Radio cab market size forecast (Current – 2017E) (By volume)
Figure 02: Current market share (By volume)
Figure 03: Radio cab market size forecast – by value (Current – 2017E)
Figure 04: Radio cab business model
Figure 05: Favourable economic indicators — per capita income and GDP growth rate
Figure 06: Domestic passenger throughput forecasts
Figure 07: International passenger throughput forecasts
Figure 08: Stakeholders of a Radio cab company
Figure 09: Quick cabs – historical financials
Figure 10: Meru cabs city wise fleet distribution
Figure 11: Meru cabs fleet size evolution (2007-Current)
Figure 12: Meru cabs Group Structure
Figure 13: Meru cabs advertisement formats
Figure 14: Meru cabs ad rates
Figure 15: Meru cabs historical revenues (FY07-11)
Figure 16: Meru cabs historical EBITDA (FY07-11)
Figure 17: Meru cabs historical net profit (FY07-11)
Figure 18: Easy cabs city wise fleet distribution
Figure 19: Easy cabs fleet size evolution
Figure 20: Carzonrent Group Structure
Figure 21: Carzonrent ownership
Figure 22: Easy cabs advertisement formats
Figure 23: Carzonrent historical revenues (FY06-11)
Figure 24: Carzonrent historical EBITDA (FY06-11)
Figure 25: Carzonrent historical net profit (FY06-11)
Figure 26: TABcab fleet size
Figure 27: TABcab fleet size evolution
Figure 28: TABcab Group Structure
Figure 29: TABcab ownership
Figure 30: TABcab advertisement formats
Figure 31: Mega cabs city wise fleet distribution
Figure 32: Mega cabs fleet size evolution
Figure 33: Mega cabs Group Companies
Figure 34: Mega cabs ownership
Figure 35: Mega cabs historical revenues (FY07-11)
Figure 36: Mega cabs historical EBITDA (FY07-11)
Figure 37: Mega cabs historical net profit (FY07-11)
Figure 38: Super Cabz fleet size
Figure 39: Super Cabz fleet expansion targets
Figure 01: Radio cab market size forecast (Current – 2017E) (By volume)
Figure 02: Current market share (By volume)
Figure 03: Radio cab market size forecast – by value (Current – 2017E)
Figure 04: Radio cab business model
Figure 05: Favourable economic indicators — per capita income and GDP growth rate
Figure 06: Domestic passenger throughput forecasts
Figure 07: International passenger throughput forecasts
Figure 08: Stakeholders of a Radio cab company
Figure 09: Quick cabs – historical financials
Figure 10: Meru cabs city wise fleet distribution
Figure 11: Meru cabs fleet size evolution (2007-Current)
Figure 12: Meru cabs Group Structure
Figure 13: Meru cabs advertisement formats
Figure 14: Meru cabs ad rates
Figure 15: Meru cabs historical revenues (FY07-11)
Figure 16: Meru cabs historical EBITDA (FY07-11)
Figure 17: Meru cabs historical net profit (FY07-11)
Figure 18: Easy cabs city wise fleet distribution
Figure 19: Easy cabs fleet size evolution
Figure 20: Carzonrent Group Structure
Figure 21: Carzonrent ownership
Figure 22: Easy cabs advertisement formats
Figure 23: Carzonrent historical revenues (FY06-11)
Figure 24: Carzonrent historical EBITDA (FY06-11)
Figure 25: Carzonrent historical net profit (FY06-11)
Figure 26: TABcab fleet size
Figure 27: TABcab fleet size evolution
Figure 28: TABcab Group Structure
Figure 29: TABcab ownership
Figure 30: TABcab advertisement formats
Figure 31: Mega cabs city wise fleet distribution
Figure 32: Mega cabs fleet size evolution
Figure 33: Mega cabs Group Companies
Figure 34: Mega cabs ownership
Figure 35: Mega cabs historical revenues (FY07-11)
Figure 36: Mega cabs historical EBITDA (FY07-11)
Figure 37: Mega cabs historical net profit (FY07-11)
Figure 38: Super Cabz fleet size
Figure 39: Super Cabz fleet expansion targets
LIST OF TABLES
Table 01: Radio cab fares across various cities
Table 02: Black & Yellow taxi fares across various cities
Table 03: Comparative analysis of major cab operators
Table 04: Rise in population in major cities (2001-11)
Table 05: Current demand analysis for the big 4 companies
Table 06: Top 10 most populous cities & the major cab operators in those cities
Table 07: Comparative analysis of Income of Radio Cab drivers Vs. Income of B & Y taxi drivers
Table 08: Financial projections (FY13-15) of major cab operators (Rs million)
Table 09: Meru cabs revenue forecasts (FY12E-15E)
Table 10: Meru cabs key balance sheet items (FY07-11)
Table 11: Easy cabs fleet type
Table 12: Carzonrent key shareholders
Table 13: Easy cabs revenue forecasts (FY12E-15E)
Table 14: Carzonrent key balance sheet items (FY07-11)
Table 15: TABcab fare structure
Table 16: TABcab revenue forecasts (FY13E-15E)
Table 17: Mega cabs key shareholders
Table 18: Mega cabs revenue forecasts
Table 19: Mega cabs key balance sheet items
Table 20: Super Cabz quoted rates for outdoor advertising
Table 21: Tab card advertising rates
Table 22: Super Cabz revenue forecasts
Table 23: Rating of radio cab operators
Table 01: Radio cab fares across various cities
Table 02: Black & Yellow taxi fares across various cities
Table 03: Comparative analysis of major cab operators
Table 04: Rise in population in major cities (2001-11)
Table 05: Current demand analysis for the big 4 companies
Table 06: Top 10 most populous cities & the major cab operators in those cities
Table 07: Comparative analysis of Income of Radio Cab drivers Vs. Income of B & Y taxi drivers
Table 08: Financial projections (FY13-15) of major cab operators (Rs million)
Table 09: Meru cabs revenue forecasts (FY12E-15E)
Table 10: Meru cabs key balance sheet items (FY07-11)
Table 11: Easy cabs fleet type
Table 12: Carzonrent key shareholders
Table 13: Easy cabs revenue forecasts (FY12E-15E)
Table 14: Carzonrent key balance sheet items (FY07-11)
Table 15: TABcab fare structure
Table 16: TABcab revenue forecasts (FY13E-15E)
Table 17: Mega cabs key shareholders
Table 18: Mega cabs revenue forecasts
Table 19: Mega cabs key balance sheet items
Table 20: Super Cabz quoted rates for outdoor advertising
Table 21: Tab card advertising rates
Table 22: Super Cabz revenue forecasts
Table 23: Rating of radio cab operators
