The overall size of the taxi market in India is approximately $10 billion and is expected to reach $40 billion by 2030. The corporate or B2B space, such as employee transportation, bus services, car rental services or inter-city travel, is the largest segment of this market. There are more than 2.1 million registered taxis in the top 100 cities in India, out of which 80-90% vehicles operate in the B2B space.
New technology players like Uber and Ola have revolutionised the taxi market in India. Both companies have deployed over $2 billion in the Indian market and have created an inventory of over seven lakh cabs. They have achieved combined a run rate revenue of $1.5 billion, catering to three million trips per day. It is expected that the number of trips will increase to 10 million in next 12 years in the taxi segment alone, mainly due to rising urban population, rising disposable income and increase in per capita trip rate. However, these players are still trying to establish a foothold in the B2B space and devising new strategies to modify their services.