Radio cabs market in india 2013 sample

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


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 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


c3 Cabs c4 cabs

Unit noo

Unit no wz

0

o

Planned For FY 2014

n

Current

m


y

7

Planned For FY 2014Current Planned For FY 2014Current


Business Model – Summary

Company‐owned Cabs Franchise

Business

Model

Attached Vehicle Rent‐a‐Cab


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


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


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


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‐‐


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


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


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


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


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


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


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


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Radio cabs market in india 2013 sample

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