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The Indian shared mobility market was valued at $630.7 million, in 2018, which is expected to surpass $3,466.7 million by 2024, with a CAGR of 27.6% during the forecast period (2019–2024).
In the forecast period, the Indian shared mobility market is expected to witness the fastest growth in the eastern region. This is buoyed by the fact that shared mobility service providers are now reconnoitering the market potential in the eastern region of the country, due to the budding demand for these services in states such as West Bengal, Assam, and Odisha.
Fundamentals Governing India Shared Mobility Market
One of the key trends witnessed in the Indian shared mobility market is the increasing number of investments coming from different investors. For instance, In March 2019, Hyundai Motor Co. invested $300 million to one of the major ride-hailing companies in India, ANI Technologies Pvt. Ltd. The amount would be invested to increase the number of electric vehicles for mobility services. Moreover, in December 2018, ANI Technologies Pvt. Ltd. (Ola) announced that it will invest $100.0 million in Vogo, scooter sharing company in India. This investment will be used to add 100,000 scooters to Vogo’s fleet, which will provide short-range commute to its users. Along with this, users of Ola can use the services of Vogo directly from Ola’s mobile application.
Increasing urban road congestion level is an important factor contributing to the growth of the Indian shared mobility market. Rising population in major cities across the country has led to an increased number of daily commuters, creating significant road congestion, especially in peak hours. Different companies are looking to introduce alternative mobility options in order to combat this problem. This scenario acts as a major driver for the shared mobility market in India. Most of the urban cities in the country, especially in metro areas such as Delhi & National Capital Region (NCR), Mumbai, and Bengaluru, are taking initiatives to encourage the daily commuters to avail sharing mobility services, with the intension of reducing the number of vehicles on road. This program has a major contribution in reducing traffic congestion, which serves as a major driver for the growth of the market.
In recent times, evolution of mobility as an ecosystem provides ample opportunities to different shared mobility service providers in the Indian shared mobility market. Many service providers are taking initiatives to widen their area of services, by establishing an integrated mobility system. The providers are not only sticking to offering only single service, but also, they are getting involved with multiple public vehicle sharing programs. For instance, in 2018, Uber Technologies Inc. (Uber), a ride hailing service provider, announced its investment in Neutron Holdings Inc. (Lime), an electric bicycle and scooter sharing service provider, as a part of a $335 million financing round led by GV (Alphabet Inc.’s venture arm).
India Shared Mobility Market Segmentation Analysis
Based on service type, ride hailing held the largest share in the Indian shared mobility market in 2018, and is expected to remain the dominant category during the forecast period as well. This is attributed to the fact that, in recent years, major automotive original equipment manufacturers (OEMs) and ride hailing service providers have entered into partnerships and collaborative agreements to boost the adoption of ride hailing services in India.
On the basis of vehicle type, the two-wheelers category witnessed the fastest growth in the Indian shared mobility market, during the forecast period. This is due to the expanding operations of market players in various cities and the increasing acceptance of two-wheeler sharing service in the NCR and Hyderabad.
The daily commuting category is expected to witness the fastest growth in the Indian shared mobility market, in terms of commuting pattern, during the forecast period. The market growth in this category can be mainly attributed to the increasing demand for shared mobility services among the young population in the country, such as students and young professionals, for meeting daily commutation needs.
Based on end use, the Indian shared mobility market is expected to witness faster growth in the business category, during the forecast period. Business firms are increasingly tying-up with ride hailing service providers to offer transportation services to their employees, which in turn, is boosting the market growth in this category.
Geographical Analysis of India Shared Mobility Market
The southern region accounted the largest share in the Indian shared mobility market in 2018, and the market in this region is expected to advance at significant CAGR during the forecast period. The dominance of this region is mainly driven by the fact that the majority of shared mobility service providers are present in southern cities of India, including Bengaluru, Chennai, Hyderabad, and Visakhapatnam. Moreover, the growing demand for ride hailing and rental services is further enhancing the growth of the market in the region.
Competitive Landscape of India Shared Mobility Market
The Indian shared mobility market is highly consolidated in nature and is majorly dominated by two ride hailing service providers, namely, ANI Technologies Pvt. Ltd. and Uber Technologies Inc. ANI Technologies Pvt. Ltd. was the market leader with over 50% share in 2018. Its wider reach in more than 110 Indian cities is the major factor behind the company’s dominance. Further, the second spot is registered by Uber Technologies Inc., whose massive global presence along with rigorous strategic developments is likely to facilitate the company in gaining additional share in the future.
Some of the other players operating in the Indian shared mobility market are Zoomcar India Pvt. Ltd., Drivezy India Travels Pvt. Ltd., Vogo Automotive Pvt. Ltd., WickedRide Adventure Services Pvt. Ltd., Roppen Transportation Services Pvt. Ltd., Meru Mobility Tech Pvt. Ltd., Bycyshare Technologies Pvt. Ltd., Yulu Bikes Pvt. Ltd., Carzonrent India Pvt. Ltd., Bashar Technologies Pvt. Ltd., Royalbison Autorentals India Pvt. Ltd., Motocruizer Technologies India Pvt. Ltd., Comuto SA, and Mega Cabs Pvt. Ltd.
Recent Strategic Developments of Major India Shared Mobility Market Players
In recent years, major players in the Indian shared mobility market have undertaken several strategic measures, such as investments, partnerships, and service launches, to gain a competitive edge in the market. For instance, in June 2019, Volkswagen AG (India) entered into a partnership with Zoomcar India Pvt. Ltd. (Zoomcar) for leasing service. With this service, customers can subscribe to Volkswagen Polo at a fixed fee per month under the ZAP subscription service of Zoomcar. This partnership has been undertaken to meet the demand arising from the changing consumer behavior from buying personal vehicles to opting for fast-paced shared mobility services.
Further, in February 2019, bike rental company, Royal Brothers, raised $1.0 million from angel investors in pre-Series A round. With this fund, Royal Brothers has planned to increase the size of its inventory, start a long-term leasing service, and introduce electric bikes.
Key Questions Addressed/Answered in the Report