India Bike Taxi Market

India’s bike taxi market was valued $50.5 million in 2021, is expected to reach $1,478.0 million by 2030, registering a CAGR of 48.5% from 2022-2030. Taxi is a type of vehicle leasing service, which includes hiring the service of a driver along with the vehicle. The bike taxi is a motorized taxi that carries one passenger as a pillion behind the driver. These taxis are motor vehicle used to carry passengers for hire or reward. These vehicles require a legal contract/ permit for usage as contract carriage. They are available for general public and usually lack regular routes, fixed timings, and fixed stations. A passenger can book or hail a bike taxi ride via a call & message with the help of a smartphone application or website using internet. Passengers can book or hire a bike taxi for a decided route, which would be pre-defined by the passenger.

COVID-19 has presented the world with an unprecedented economic, humanitarian, and healthcare challenge. Lockdown measures have helped to contain the spread of coronavirus, but exacted an immense economic toll. On the business side, the automotive and transportation sectors are among the hardest hit. Social distancing norms and regulations implemented by healthcare and government authorities encouraged citizens to maintain a certain distance from other persons for safety. This has restricted the usage of ride hailing services such as cabs and bike taxis for daily commute in India. Users prefer to travel in their personal vehicles due to safety concerns, which hampered the India bike taxi business. However, owing to the growing vaccination numbers in India coupled with gradual rise in trend of ride hailing services and on-demand transportation services, the India bike taxi market is foreseen to grow well in near future.

Factors such as increased trend of on-demand ride hailing services, surge in traffic congestion in cities, and rise in demand for first and last mile connectivity are expected to drive the growth of the bike taxi market. However, legal issues associated with bike taxi and resistance from local public transport operators restrains the market growth. On the contrary, surge in inclusion of e-bikes and technological advancement in bike sharing system is projected to offer lucrative growth opportunities for the market players.

The India bike taxi market is segmented into vehicle type and propulsion type. By vehicle type, the market is divided into motorcycle and scooter. On the basis of propulsion type, it is classified into ICE (Internal combustion engine) and electric.

Key players operating in the India bike taxi market include Baxi, Bikxie, Desto-Bike Taxi, Dunzo, Jugnoo, Mopedo, Ola (ANI Technologies Pvt Ltd), PykUpz, Rapido, and Uber Technologies, Inc.

Rise in trend for on-demand ride hailing services

Ride-hailing services such as bike taxis enable passengers to hail a vehicle using online platforms and provide door-to-door services to their customers owing to which it is one of the most convenient means of transportation. Moreover, while hailing a ride, information of the driver and the passenger is exchanged that make ride-hailing services much safer than the traditional taxi services. In recent years, demand for ride-hailing services has increased significantly, especially among office commuters. Moreover, a significant rise in the preference for on-demand services such as taxis, passenger vehicles, and charter vehicles, which provide tracking of vehicles, real-time feedback, and rating for service experience provided to the end customers has encouraged the consumers to opt for ride-hailing services. Furthermore, ride-hailing services ensure that customers can accurately locate the vehicles and track their journey alongside offering safety to the occupants.

In addition, an increase in the bike taxi services offered by the leading market in India players, including Rapido, Uber, & Ola, and the option to choose convenient pick-up and drop locations has encouraged the consumers to opt for ride-hailing services , which in turn is expected to boost the demand for bike taxi market in India during the forecast period..

Surge in traffic congestion in Indian cities

In recent years, owing to urbanization, a majority of the population has shifted to urban areas, due to an increase in work opportunities and rapid industrialization. In this era of urbanization, daily commute between one place to another is the need for every individual passenger, which is associated with travel time. However, with the upsurge in traffic congestion, the average speeds of travel between two points is also decreasing; resulting in an increase in average commute time.

According to the World Bank paper on Mobility and Congestion in Urban India 2018, the average speed in Indian cities is around 24.4Kmph with Kolkata, Bengaluru, Hyderabad, and Mumbai among the slowest cities in the country. Moreover, according to Press Trust of India, in 2020, Bengaluru drivers spent an average 71% extra travel time caught in traffic. Furthermore, according to TomTom Traffic Index 2021 report, Mumbai, Bengaluru, and Delhi are among the top 10 most congested cities out of 404 cities surveyed across 58 countries.

Owing to all these factors, the city planners and the government are promoting public transport and other transportation services such as taxi services and ride-sharing services. The bike taxi occupies less space on roads and can better navigate through traffic. Further, bikes when doubling up as bike-taxis act as an alternative for private vehicle users, and thus reduce the demand for parking spots and can be helpful to minimize the traffic congestion in a city. Owing to all the aforementioned factors, the market for bike taxis in India is expected to grow significantly during the forecast period.

Covid-19 Impact Analysis

COVID-19 has presented the world with an unprecedented economic, humanitarian, and healthcare challenge. Lockdown measures have helped to contain the spread of coronavirus, but exacted an immense economic toll. According to the Telangana Taxi and Drivers Joint Action Committee (JAC), prior to pandemic, around 35,000 cabs were used to shuttle IT employees from the IT corridor to different destinations. Social distancing norms and regulations implemented by healthcare and government authorities encouraged citizens to maintain a two-meter distance from other persons for safety. This has restricted the usage of ride hailing services such as cabs and bike taxis for daily commute. Users prefer to travel in their personal vehicles due to safety concerns, which hampered the taxi business. In 2020, along with the Cab, and ride sharing industry, bike taxi companies such as Rapido, Ola, Uber, and others suffered severely from the coronavirus pandemic due to travel restrictions and lockdowns. For instance, in March 2020, owing to national lockdown, leading bike taxi provider Rapido and OLA temporarily suspended their operations in India.

Key Benefits For Stakeholders

• This study presents analytical depiction of the India bike taxi market analysis along with the current trends and future estimations to depict imminent investment pockets.
• The overall market opportunity is determined by understanding profitable trends to gain a stronger foothold.
• The report presents information related to key drivers, restraints, and opportunities with a detailed impact analysis.
• The current market is quantitatively analyzed from 2021 to 2030 to benchmark the financial competency.
• The Porter’s five forces analysis illustrates the potency of the buyers and suppliers in the industry.

 India Bike Taxi Market Report Highlights