Considering the strong growth potential for taxi business in India, the popular cab aggregators like Ola and Uber are targeting the Indian market to uphold their businesses. The opportunities in India are obvious as we witness the battle between Ola and Uber to grab the Indian market. India is characterised by a strong demand due to which there is a wide scope for big players to thrive.
As a lot of people in the country commute on a regular basis, the taxi industry has undergone a dramatic change in the past 2-3 years. Despite the big players, it also provides immense opportunities for the other cab companies, if improved and enhanced according to the market trends and customer demands. Only a few have managed to break the challenges and overcome the competition.
India embodies an ecosystem that enables cab aggregators to prosper and effectively build trust among customers. From the time the cab companies began adopting the aggregator model, the country has been witnessing a strong progress. The choices are infinite. In spite of the potentialities, the companies should also consider and mitigate the challenges that the country proposes.
A large section of the country yet does not feel convenient using mobile apps to hire rides. The not so advanced and affordable GPS system is one of the reasons. Several areas are still not equipped with a good internet network. Though digital payment system, particularly wallet payments, are encouraged in the country, many abstain from using cashless payments daunted of being deceived by frauds.
Uber is found in the news recently as the company failed to address the safety concerns of the riders. This is also one of the causes of people neglecting the new business model. Suspicions among drivers regarding their job security also draw them back from being a part of the aggregator model. Assurance of safety and security can help build a loyal customer base.
Due to the growing demand for on-demand services in India, there is a huge scope for cab companies looking to transform the transportation industry. Even when Uber and Ola, in addition to other small ride-hailing companies, are operating in the various cities of the country, there are tremendous possibilities yet to be explored.