UR Associates Research
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Indian Radio Cab Market 2012 - Challenges and Growth
Opportunities
Indian radio cab market outlook
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A “Sunrise Industry in India”, Indian Radio Cab industry is characterized by huge demand, high growth
rates and plenty of buzz
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Radio cab market size Current – 2017E (By value & volume)
Current
XX
2013
2014
2015
Total radio cabs
Current market share (By volume)
XX
m
XX
XX
X%
Sa
XX
XX
Current market size –
XX cabs
Current market value –
Rs X bn
Major presence in
Mumbai, Delhi NCR,
Bangalore & Hyderabad
Major players – Meru
Cabs, Easy Cabs, Mega
Cabs and TAB Cabs
2016
2017
X%
X%
X%
Meru cabs
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Easy cabs
X%
Mega cabs
Tab cabs
Others
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industry report for
further details
Please read our
industry report for
further details
Please read our
industry
report
for further details
n
Please read our
industry report for
further details
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Please read our
industry report for
further details
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Business model
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Please read our
industry report for
further details
Advertising revenues are another source of revenues. Please read our industry
report for further details.
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Radio cab fares vary from city-to-city
Ludhiana
Jaipur
City
B&Y taxi fares
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Night time charges
XX
XX
XX
XX
XX
XX
en
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XX
XX
XX
es
XX
XX
XX
Pr
Kolkata
Chandigarh
Amritsar
XX
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Hyderabad
Waiting charges
XX
XX
XX
XX
XX
pl
Bangalore
m
Mumbai
Delhi NCR
Delhi NCR (Economy radio cabs)
Fare per km (Rs)
Day time charges
Sa
City
Radio cab fares
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
Fare per km (Rs)
Day time charges
Waiting charges
Night time charges
XX
XX
XX
Mumbai
Delhi
XX
Kolkata
XX
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XX
XX
XX
XX
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Stakeholders of a radio cab company
Person A
Person G
Radio cab company
Person B
Person C
Person F
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Person H
Person E
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Person D
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Overview of major players
Sales CAGR (FY07-11)
FY11 net profit/(loss) (Rs mn)
Accumulated profit/(losses)
FY07-11 (Rs mn)
FY11 Total debt (Rs mn)
20--
20--
20--
Mumbai, Delhi NCR,
Bangalore and Hyderabad
Mumbai, Delhi NCR,
Bangalore and Hyderabad
Mumbai, Delhi, Bangalore,
Kolkata, Ludhiana,
Chandigarh and Amritsar
Mumbai
xx%
xx%
xx%
x%
xx.x%
xx
xx.x%
XX
n
io
XX
xx.x%
XX
XX
XX
en
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XX
XX
es
XX
Pr
FY11 Net sales (Rs mn)
20--
e
Market share (volume terms)
TAB CABS
XX
pl
Area under operations
MEGA CABS
m
Fleet size
EASY CABS
Sa
Incorporation year
MERU CABS
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
Meru cabs, Easy cabs and Mega cabs are the three major companies that have
dominated the radio cab market till date. Tab Cabs is the latest entrant into the
industry and ……………………
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Demand drivers & growth opportunities
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Census 20--
% addition
% growth
XX
X
X
x%
City C
XX
X
X
x%
City D
X
XX
X
XX
X
X
X
20,000
10,000
XX
x.x%
x.x%
XX
x%
FY 02
FY 07
X
FY 11
FY 17E
International passengers throughput forecasts
XX
XX
x.x%
x.x%
XX
XX
Mn
10.0%
Sa
30,000
Rs
XX
X
x%
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Favourable economic indicators
40,000
X
X
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Total
x%
X
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XX
Mn
Pr
City B
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Census 20--
City A
m
City
Domestic passengers throughput forecasts
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Increasing urbanization
Please read our Industry report for further
details
due to
Huge demand exists
x.x%
x.x%
x.x%
0
5.0%
X
X
X
X
0.0%
2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12
Per per capita (at constant prices)
GDP growth rate
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FY 02
FY 07
FY 11
FY 17E
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Demand drivers & growth opportunities
The big four need another XXXX-XXXX more cabs to meet the current demand
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Please read our industry report for further details.
Mega cabs
Min
Max
X
Y
x%
y%
Y
X
X
X
y%
x%
x
y
YY
XX
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Current demand analysis for the big 4 companies
Meru cabs
Easy cabs
Metrics
Min
Max
Min
Max
Y
Y
X
No. of calls --- per xxx
X
Average call ---- --x%
y%
x%
y%
Y
Y
X
X
No. of calls ---Current fleet size
X
X
X
X
% -y%
x%
y%
x%
Trips per -- per --x
x
y
y
YY
XX
YY
No. of additional cabs
XX
required
Total cabs requirement
assuming no ---% of ---Total cab requirement
x%
X
Min
X
y%
Y
z%
Z
x%
X
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Max
Y
y%
Y
Tab cabs
Min
Max
X
Y
x%
y%
X
Y
X
X
y%
x%
x
y
YY
XX
z%
Z
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Demand drivers & growth opportunities
Comparative analysis of Income of Radio Cab drivers Vs. Income of Black & Yellow taxi drivers
Black & Yellow taxi driver avg. income
Radio cab driver avg. income
Metrics
Values Metrics
Avg. xx
X Avg. xx
X
Avg. xx
Avg. income xx (Rs)
X
Avg. income xx (Rs)
Avg. no. of xx
Taxi rent for xx(Rs)
Avg. take home income per month (Rs)
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Y
Cost x + y (Rs)
Y
x (Rs)
Y
es
X
Y
X
Total take home income xx (Rs)
Y
Pr
Total take home income xx (Rs)
Charge above x
X
Avg. no. of xx
Y
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xx (Rs)
X
Y
X
Taxi rent for xx (Rs)
Y
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Cost x (Rs)
X
Charge xx (Rs)
XX
Avg. take home income per month (Rs)
YY
m
Charge above x
X
Y
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Charge xx (Rs)
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Avg. xx
Values
Y
On an average, a radio cab driver earns xx% more than a Black & Yellow taxi driver.
Please read our industry report for further details.
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Demand drivers & growth opportunities
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Many large cities like xx, xx, xx and xx are relatively untapped
Population
Major Cab Operators
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
Pr
XX
e
XX
XX
XX
pl
XX
XX
XX
m
XX
XX
Sa
XX
es
City
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Top 10 most populous cities
XX
XX
There are no big players with fleet size more than xx in other major cities like xx,
xx, xx, xx, xx, xx and xx….. Please read our industry report for further details
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A highly regulated
market
leading to
Operational
challenges
leading to
Eight major reasons for the shortage of drivers
– detailed viewpoints of drivers, cab operators
and regulatory authorities
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due to
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Availability of
drivers, a key hurdle
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details
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Challenges
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details
Please read our industry report to get the insight of the challenges faced by the
radio cab operators in carrying out their operations
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Competitive challenges
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The online car aggregators have the ability to be a worthwhile competitors to the
radio cab operators in the long run
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Characteristics
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Point-to-point services
Local travel services
Airport transfer services
Out station services
The online aggregators do not own the fleet, but they can be credited with ...................
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Competitive challenges
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Economy radio cabs – the business model yet to be successful
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Quick Cabs - Financials
Z
X
Z
X
Z
Pr
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X
Y
Y
Y
FY09
FY10
FY11
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The concept of economy radio cabs
started in City A in 20xx. However, even
after xx years there is still no sizeable
player in terms of fleet size and more
importantly in terms of revenues. Quick
cabs, Player A, Player B, Player C and
Player D are some of the players who
have entered the City A as economy
radio cab service providers.
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Rs mn
Operating income
Net profit after tax
Total debt
The economy radio cab companies charge a daily rental of around Rs XXX-XXX from the
drivers, which is at a xxx of about xx-xx% compared to the rentals charged by the standard
radio cab companies.
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Financial estimates
This industry incurs high operational cost along with high depreciation expenses. As this is a capital intensive
sector, the companies also have to bear high interest cost.
MERU CABS (Rs mn)
FY13E
FY14E
XXXX
XXXX
XXX
XXX
XX
XX
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Year
Revenues
EBITDA
PAT
Pr
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The companies have reported ----- operating
performance with an EBITDA margin of ~X-X%
but have reported ----- bottom line --- high
depreciation as well as interest costs. We estimate
the following ranges for expenditure as a % of
sales:
• Operational expenses:
x%
• Administrative & marketing expenses: x%
• Employee expenses:
x%
• Depreciation expenses:
x%
• Interest expenses:
x%
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Year
Revenues
EBITDA
PAT
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Year
Revenues
EBITDA
PAT
Year
Revenues
EBITDA
PAT
EASY CABS (Rs mn)
FY13E
FY14E
XXXX
XXXX
XXX
XXX
XX
XX
MEGA CABS (Rs mn)
FY13E
FY14E
XXXX
XXXX
XXX
XXX
XX
XX
TAB CABS (Rs mn)
FY13E
FY14E
XXXX
XXXX
XXX
XXX
XX
XX
FY15E
XXXX
XXX
XX
FY15E
XXXX
XXX
XX
FY15E
XXXX
XXX
XX
FY15E
XXXX
XXX
XX
We expect the cab companies to report an EBITDA margin of ~x.x - x.x% during FY13-15E with a PAT margin
in the range of x.x – x.x% over the period.
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Company standings and our suggestions to the industry
Mega Cabs
Current fleet
size
Brand
recognition
Financial
performance
XX
XX
XX
XX
XX
Operational
efficiency
XX
Management
comfort
XX
Ability
expand
XX
to
XX
XX
XX
Pr
XX
Tab Cabs
XX
e
XX
pl
XX
XX
XX
XX
XX
XX
XX
XX
XX
m
XX
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Easy Cabs
es
Meru Cabs
Sa
Parameters
UR Associates suggestion to the industry
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Rating of radio cab operators
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We have rated the performance of the companies vis-à-vis their peers on various parameters. The ratings are
based on UR Associates research and interaction with the various stakeholders of the Indian Radio Cab
Industry
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We have outlined 6 suggestions /
recommendations to the Indian
Radio Cab Industry for better
operating
performance
and
overcoming challenges faced by
the industry.
Please read our industry report
for further details.
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MEGA CABS
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EASY CABS
Pr
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SUPER CABZ
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TAB CABS
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MERU CABS
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Company profiles
We are only presenting MERU CABS profile in the presentation, all other cab companies
profiles are prepared on similar lines.
Please Read Our Industry Report For Further Details
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Company profile – Meru Cabs
Area of operations:
City A, City B, City C and
City D
 Revenues from radio cab services are almost x times of the
nearest competitor
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 xrd largest radio taxi company in the world
 Serves more than x million passengers a month
Sa
Existing PE/VCs: XXX
Fund
 Largest fleet of radio cabs with about xx% market share in
terms of volume
m
Fleet type: Cab A, Cab B,
Cab C and Cab D
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Total fleet: XXXX
Company highlights
 #x player in Indian Radio cab market with the “MERU” name
being the synonymous with radio cab.
Launched: Month 20xx
Meru Cabs was started in 20xx by Mr. XYZ, a first generation entrepreneur in partnership with private equity
firm ABC Ltd. Meru has ushered the Radio cab market in India and has been one of the most popular names in
this industry
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Company profile – Meru Cabs
Current fleet size
xxxx
V-Link Travel
Solutions Pvt.
Ltd.
io
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xxxx
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ta
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xxx
Fleet size evolution
XXXX
XXX
X
2007
Mumbai
x
x
x
x
2008
Delhi
XXXX
x
x
x
x
x
x
x
x
2009
2010
Hyderabad
XXXX
x
x
XXXX
x
Car Rentals
Automotive
Solutions
Please
read
our industry
report
for
further details
Please
read
our industry
report
for
further details
Please
read
our industry
report
for
further details
Please
read
our industry
report
for
further details
x
Sa
XXXX
Meru Cabs Pvt.
Ltd.
Pr
Bangalore
e
Hyderabad
pl
Delhi
m
Mumbai
V-Link Fleet
Management
Solutions
es
xxxx
No. of cabs
Group structure
x
x
2011
x
x
2012
Current
Bangalore
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Company profile – Meru Cabs
Board of Directors
Meru Cabs Pvt. Ltd. was
established by V-Link Travel
Solutions
Pvt.
Ltd.
in
partnership with India Value
Fund Advisors (IVFA). IVFA is a
private equity fund established
in 2000 with .………………...
Neeraj Gupta: He is a first
generation entrepreneur and
the Managing Director of V-Link
Travel Solutions Pvt. Ltd. and
Meru Cabs Pvt. Ltd. Neeraj
started his passenger transport
business under the name
'Travel Link' in 20xx and had
started
Meru
Cabs
in
partnership with IVFA.
Management
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Ownership
Please read our industry report
for further details.
For other Directors of the Board
please read our industry report.
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Siddhartha Pahwa: He was
recently appointed as the CEO.
Prior to this, he was the COO of
Meru Cabs. He has over 15
years of experience in Supply
Chain, Operations and Finance
management. Earlier, he was
the President - Supply Chain &
Generics at Abbott Healthcare
Pvt. Ltd.
Please read our industry report
for other members of the
management team.
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Company profile – Meru Cabs
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Meru currently has xxx companies as its
customers for cabvertise services. The
advertising formats are:
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 Advertisement format A:
 Advertisement format B:
 Advertisement format C:
Sa
“Cabvertise”
is
the
advertising services offered
by Meru cabs which is seen
as a much more effective
and
cost
beneficial
alternative
to
outdoor
media.
At
present
advertising
revenues
contribute ~x% to the total
revenues of the company.
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CABVERTISE: An important driver for growth
Meru quotes Rs xxxx – xxxx per xx for cabvertise services. Please read our industry
report for further details.
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Company profile – Meru Cabs
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SWOT ANALYSIS
Please read our industry report for details
Weakness
Please read our industry report for details
Threats
Pr
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pl
m
Please read our industry report for details
Sa
Opportunities
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Strengths
Please read our industry report for details
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Company profile – Meru Cabs
Financial performance
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Please read our
industry report
for
further
details.
FY 10
FY 11
pl
EBITDA
X
Please read our
industry report
for
further
details.
Sa
X
X
FY07 (4
months)
X
FY 08
X
FY 09
FY 10
X
X
es
FY 09
e
Rs million
FY 08
m
FY07 (4
months)
XX
X
Pr
XX
XX
io
Rs million
XX
XX
Net profit
n
Gross revenues
Rs million
X
FY07 (4
months)
FY 08
FY 09
FY 10
X
FY 11
Please read our
industry report
for
further
details.
FY 11
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Company profile – Meru Cabs
Total no. of xxxx
Cab xx rate
Revenue (Rs million)
Advertising revenues per xx/yy
xxx rate
Advertising revenues per xx/yy
Total advertising revenues (Rs
million)
Total revenues (Rs million)
% growth
X
XX
X
XXX
XXX
x%
x%
XXXX
X
n
X
XX
io
XXXX
XXXX
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ta
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XXXX
XX
X
XX
X
X
X
XXX
XXX
x%
x%
es
Avg. no. of xxxx per xxx
XXXX
FY 15E
Pr
No. of xxxx per xxx
FY 14E
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Avg. xxxx per xxx
FY 13E
XXXX
XXXX
XXXX
x%
x%
x%
pl
Fleet size
FY 12E
XXX
m
Metrics
XXXX
XX
XXXX
XXXX
XX
XXXX
XXXX
XX
XXXX
XXXX
XXXX
x%
x%
x%
x%
x%
XXX
Sa
MERU CABS
Revenue forecasts
XXX
Copyright © UR Associates
XXX
XX
We expect that with
xxxx cities, Meru should
reach the xxxx mark in
the next x years time.
Please
read
industry report
further details.
our
for
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Company profile – Meru Cabs
Accumulated D&A
Net Block
Capital work-inprogress
Fixed Assets
XXXX
xx
XXXX
xx
XXXX
xx
xxxx
xxxx
xxxx
X
X
xx
xx
XXX
XXXX
xx
xx
XXX
xx
x
XXXX
n
io
xxx
x
xx
XXX
X
XXXX
Potential risks
X
Five Potential Risks
which can impact the
operational efficiency of
the company as well as
other cab operators.
en
ta
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xxx
x
FY11
xxx
XXXX
xx
xxx
XXXX
xx
xx
xx
Pr
Gross block
xxx
x
FY10
xxxx
xx
e
Shareholders' funds
Share application
money
Loan funds
FY09
XXX
pl
Reserves surplus
FY08
X
m
Paid-up share
capital
FY07
XXXX
Sa
(Rs million)
es
Key Balance Sheet items
xxxx
xx
XXX
X
XXXX
Please
read
our
industry report for
further details.
Copyright © UR Associates
Please read our industry
report
for
further
details.
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Disclaimer:
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Please read our 75 page comprehensive industry report to get in-depth insight of
the Indian Radio Cab Market, the Growth Drivers, Challenges, Regulatory
Framework, Company profiles and Financial Performance and Estimates.
Pr
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statutory proceedings.
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reproduction, disclosure or dissemination is prohibited. The information and opinions on which this communication is based
have been complied or arrived at from sources believed to be reliable and in good faith, but no representation or warranty,
express or implied, is made as to their accuracy, correctness and are subject to change without notice. Certain matters
discussed in this Document may contain statements that are individually and collectively forward-looking statements. Such
forward-looking statements are not guarantees of future performance and are subject to known and unknown risks,
uncertainties and assumptions that are difficult to predict. Recipient/s should consider this report only for information
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