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Team Members
Mrinal Bhirud Sagar Jadhav Lipika Inerkar Vishal Parekh Sameer Shinde Vivek Yadav Pritesh Chaudhary Yogesh Jadhav Umesh Mahajan Pooja Sharma Vivek Nambiar

Group 9 NAVratnas

Growth Drivers Industry Analysis Competitor Analysis Customer expectations

Insights Image of Tabcab Awareness about Tabcab’s offerings

Objectives Drivers & insights leading to objectives Road blocks to achieving them

Execution Plan Current Process Execution strategy Potential Benefits

Conclusion Timeline Investment required

Group 9 NAVratnas

Radio Cabs- Growth Story
• Point to Point Taxi Market completely unorganized • Characterized by badly maintained vehicles, tampered meters and unruly behavior of drivers • Dominant presence of Auto Rickshaws due to availability and affordability Key Factors catalytic in helping the Radio Cab Industry in India to take root and flourish

Expanding middle class • Increased disposable income due to growth of various sectors • This segment started demanding and has the ability to pay for better services

Transformation in Auto Industry • Massive transformation in the Indian Automotive Industry • Currently offers a wide variety of options at different price points • Better quality options available at varied price points • Radio Cab sector has been the direct beneficiary
Group 9 NAVratnas

GoCarz •More than 10 lakh passengers per month across Mumbai.00. Bangalore. Mass Transport.Market Overview Start of Operation 2006 2006 2007 Operator Parent Company Group Mega Carzonrent India Pvt Ltd V-Link Fleet Solutions Pvt Ltd •Total Radio Cab segment is 15000+ cabs in size •3 major players holding 70% of market share •Over 10 players across India cashing on this lucrative market •Other Operators include TABCcab.000 cabs plying in Mumbai split between black and yellow cabs. Radio Cabs. Delhi and Hyderabad • Operator Revenue ~ Rs. GetMeCabs. Car leasing Radio Cabs.50.Radio Cabs. Car rentals. Banking. Fleet Solutions. private fixed rental cabs and Radio cabs •Total strength of Radio Cabs in Mumbai is less than 3% market share of Taxi business •Current penetration an indicator of market potential and growth opportunities •Model attracting both permit owners and fresh drivers Group 9 NAVratnas . Telecom.000-2. Car rentals and Bus services •1.5007Cr Business Lines Media Marketing. Hospitality Radio cabs.

Mumbai and Hyderabad in the initial stages They are now targeting other big cities like Chennai.COVERAGE OF CITIES AMRITSAR Most operators have focused on building base in the high-density markets like Delhi. Amritsar) Group 9 NAVratnas . Kolkata and Pune LUDHIANA CHANDIGARH DELHI KOLKOTA MUMBAI HYDERABAD BANGALORE Mega Cabs is the only exception to this strategy whereby the Company has spread out its operations in big and small cities (Chandigarh. Bangalore. Ludhiana.

000 old black and yellow taxis on Greater Mumbai road and 35. Santro etc There are 54.524 taxi permits 5% of the commuters in Mumbai use taxis 2.Taxi Service in Mumbai Only 20.32. Tata Indica.000 New taxis like Maruti Alto. Omni. Wagon R.002 drivers hold Taxi Driver’s Badge (Billa) which authorizes them to drive a taxi Issue of new permits for Premier Padmini taxis have been frozen since November 1997 Group 9 NAVratnas .

Key Players Group 9 NAVratnas .

Fresh. Infotainment 400-500 Largest fleet. to book. Brand Equity 600 Car Rentals. Luxury Toyota Etios and Maruti SX4. Corporate Leasing 400-500 Drivers from reputed institutes like the Institute of Driving and Training Research (IDTR) .Mobile Apps are available Group 9 NAVratnas . 60 sec.Overview of Major Players Tab Cabs Incorporation Year 2012 Meru Cabs 2006 Easy Cabs 2007 Mega cabs 2006 Fleet Size Value Proposition 1867 New.

Delhi Bengaluru. Ludhiana Group 9 NAVratnas .Overview of Major Players Tab Cabs Tariff Operations in Cities 27/20/2 Mumbai Meru Cabs 27/20/2 Mumbai. Mumbai Bengaluru. Kolkata. Chandigarh. Hyderabad cont… Mega cabs 27/20/0.5 Mumbai. Delhi Bengaluru.5 Delhi. Amritsar. Hyderabad Easy Cabs 20/20/1.

Car Dealers Company Cars Used Toyota Etios Maruti SX 4 Tab Cab Maruti Suzuki Esteem Mahindra Logan Meru Cabs Tata Indigo Tata Indica Toyota Corolla Easy Cabs Maruti Suzuki Esteem Mahindra Logan Tata Indigo Hyundai Accent Mega cabs Group 9 NAVratnas Tata Indigo Tata Indigo marina .

Industry Analysis and Comparison Industry Overview • • • • Market at a nascent stage with revenue of approx. $750 million Over 10 major players across India cashing on this lucrative market More than 10 lakh passengers per month across Mumbai. Delhi and Hyderabad Operators are expanding in tier 2 cities as well TAB Cab • Total Fleet Size is close to 1847 as of Feb 2013 •Highest Growth rate among the major players. Bangalore. •Uses Best in Class Toyota Etios and Maruti SX4 •Best in class systems and fleet size growing at 66% Customer Expectations Availability Keeping up the commitment Ease of booking Travel comfort No trouble with driver Affordability Meru Easy cabs Mega cabs Other local Radio cabs and Black & Yellow Taxis TabCab Excellent Very Good Good Average Below Average Group 9 NAVratnas .

. 70 cr 700 0 = 104 cr Permit Why Mumbai? Taxis in 1997: 63000 T Taxis in 2012: 30000 Govt. banned cabs older than 25 years Phase I 1200 T Toyota Etios Phase II 400 Maruti T SX4 Phase III There was a huge gap and the demand for cabs increase every day Industrial Capital and thus the number of people travelling to and in city is increasing + 500 cr Cars + 96 cr Rest by T24 Dec 2013 Total Investment Call Centre & ancillaries Group 9 NAVratnas . Ltd.TABcab. The company had been awarded licenses for a total of 4.000 phone fleet taxis by Government of Maharashtra through a first time tender for phone fleet taxis. a large infrastructure group based out of Nagpur It was launched in Mumbai in February 2012 Mumbai’s leading phone-fleet operator with 1674 Tab overview TAB cab is a venture by the SMS Taxi Cabs Pvt. a subsidiary of SMS Infrastructure Ltd..

The company should widen it target customer and offer tailored services for every category The company also hasn’t reached upcoming areas in and around the city A driver can become a TABcab driver after undergoing a 2-day training programming which is organized by the company and costs Rs.TABcab. The brand’s main target customers are midlevel employees who travel within the city and to the airport frequently. 5000/- The company has positioned the brand as Fresh and New but it should reposition itself and make it category which is more accessible to the public The driver then needs to pay Rs. 1100 to the company and can keep the rest of the earning for himself The driver gets only one holiday monthly Educate the masses Increase Accessibility Tailored Services Enter untapped markets The drivers also get Rs. 400 for every advertisement posted on the cab The maintenance charges are borne by the company Group 9 NAVratnas .Operations The brand’s differentiating factor is the hi-tech gadgets available inside the cab for entertainment which the company fails to leverage on.

songs and 3G on the way Group 9 NAVratnas . Low Income Group T P • Urban customers in Mumbai only • High income group. Upper middle income group • Service that offers travel with luxury. comfort of large space in Toyota Etios • Entertainment with latest movies.Current D-S-T-P D S • Use of only Toyota Etios with typical White and Red color to differentiate from others • Every TABcab has a 3G tablet in it for entertainment of customers • Geographical – Urban. Rural • Income group -High income Group. Mid Income Group.

Survey Brand Recall 50 40 30 20 10 0 60 50 40 30 20 10 0 Prefered means to hire other than Call Direct from a stand Mobile App Brand Recall Mumbai Pune by Radio Cab 60 40 20 0 YES NO Depends on rate Group 9 NAVratnas Mumbai Pune by Radio Cab **Based on a survey conducted in Mum-Pune region Total Responses:50 .

7 P’S Product Price People Place Promotion Process Physical Evidence Group 9 NAVratnas .

Rs.registered . get a printed receipt People • Drivers. 2000 per trip. 20 for subsequent kms • TabCab Gold.contd Product • Radio Cab Service in the premium category • 3 types of servicesTabCab .thorough background check • TabCab Gold. Promotion • Print and digital • iOS. facebook.twin cities roughly 160km away from one another • Inter-city service and Intra-city service • TabCab hotspots at major city junctions to increase availability Price • TabCab. 23 for subsequent kms • TabCab Express.Android game.twitter.tabcab.Rs.Will greet customers in English • Call Centre ExecsEnglish/Hindi/Marathi Phy Evi • Print-digital Ads will showcase the plush interiors/ highlight comfort • ‘For Hire’ boards on top showing availability Group 9 NAVratnas .Rs. TabCab Express • Cabs running on CNG • White .in • Book a Cab through the mobile application ‘ TabApp’ • Locate nearest available cab /hotspot through ‘ TabApp’ • Pay bill via Cash/Card. • Focus on popular social networks to cater to the youth i. Red and Goldprimary colors for Brand Recall Place • Mumbai and Pune. 30 for 1st/ Rs. 27 for 1st/ Rs. TabCab Gold.7 P’s.e.. 400 per person.well trained.Cab Pool comes down to Rs.on the lines of Crazy Taxi Process • Call 63636363 • Log on to www.

Operations Expansion into Tier I cities .Modern fleet of around 1674 taxis .Location tracking GPS and 24 x 7 customer support .Tie-up with major bank – BoB WEAKNESSES .Complaints of overcharging and rude drivers rampant on social media websites THREATS .Fuel Price/ taxation policy on diesel cars .Political impacts – Drivers union .Infotainment in-car services .Dearth of skilled drivers Quantum Growth Objectives Brand Awareness Increasing Reach Product Differentiation Image creation (Top-of-mind recall) OPPORTUNITIES . Aspirational value STRENGTHS .Strategic partnerships with Online Travel Portals .Highly regulated market .Limited consumer base (Mumbai) .High maintenance costs .Quantum Growth Recommendations Indianisation of Thought Process Mid size Sedan-level Chauffeur driven car still signifies 1.Preferred taxi service at Mumbai Airport .Growing Affluent Market Demands .Stiff fare policy due to low switching costs .Stiff competition from current players .Social media branding SWOT ANALYSIS Customer engagement Group 9 NAVratnas .mgmt disputes . Status symbol 2. Standing in the society – Social status 3.Poor call centre response .Current demand of 7000 – 8000 radio cabs in Mumbai city .

Lonavla.Quantum Growth Recommendations Timeline of the Strategic Recommendations 1st year 2nd year 3rd year REACH Rectification • Excess concentration Expansion • Big Ticket Idea: Mumbai – Pune Shuttle Service • Big Ticket Idea: Launch of cab services in Pune city • Vertical integration: Tie-up with major 3. 4. Panvel. Lavasa and Pune • Launch of customised mobile application with direct gateway to BoB platform • Tie up with airlines for inflight cab booking Consolidation • Frequent travellers TabCab Card: Launch of frequent travellers programme to cater regular customers • Tie up with corporate entities • Elimination of current perception that tab cabs can be hired only via telecommunication • Limited launch (Soft opening to gauge response) in other metros in India of services in certain parts of the city • Elimination of current perception that tab cabs can be hired only via telecommunication • Excess utilisation of exterior car body for marketing other brands • Communication failure of utilities and services provided intra car • Lack of emphasis on GPS & safety aspects of the car service STRATEGY & EVENTUAL RESULT ENGAGE LOYALTY MONETIZE Group 9 NAVratnas . Amby Valley. 5 star hotels in Mumbai.

Saturated market Recommendations: 1. Financially feasible model (Infrastructure boost provided by upcoming Panvel airport + resultant population migration) Group 9 NAVratnas . Shift concentrated cab hubs from Mumbai city to suburbs and Thane city wherein to match the trend of migration of smart spending emerging upper middle class is based and major corporate offices are being shifted. Create a buzz through online social media marketing and public space hoardings so to attract customers from Thane and Navi Mumbai to create two-way transport model 3. 1090 Blue Ocean market Includes only ‘to’ charges.Critical Recommendation – 1st year Primary Research .Responses of 6 drivers of Tab Cab Average visits to /fro Mumbai city from/to Airport per month Average Fare to/fro Mumbai city per month Average visits to Thane city and Navi Mumbai from Airport per month Average Fare from Mumbai city per month 42 Rs. 2. 570 22 Rs.

Food chains on municipal borders of Panvel and Pune can also be covered Frequency of accessing internet on mobile/tablet 4-5 times a day Daily 3-4 times Once a a week week Once in 15 days Once a month 60% 40% 20% 0% Courtesy: Hyundai Research for GYMC 2013 MUMBAI NAVI MUMBAI PANVEL LAVASA LONAVLA AMBY VALLEY PIMPRI PUNE Launch of customised mobile application with direct gateway to Bank of Baroda Bank platform • Elimination of inter dependence on online portals who charge exorbitant commission • Decrease in costs due to limited Call centre operations Group 9 NAVratnas . Generally. the customer tends to complete the cab booking via desk reception. 5 star hotels and food chains: 1. Hence. Special emphasis on Amby Valley and Lavasa hot spots and Pimpri industrial zone (No direct connectivity to expressway) 4. in premium hotels. the entire Mumbai Pune corridor including expressway can be serviced 2. synergising with these hotels will enable fixed avenues of revenues 3.Critical Recommendation – 3rd year Market expansion phase via launching services in Pune and managing the synergetic vertical chain Tie up with major 3. With the launch of Mumbai-Pune shuttle service and launch of intra Pune Tabcab services. 4.

TabCab HotSpots!! Execution Ideas 1. Category Growth Group 9 NAVratnas . TabApp.the mobile app 3. TabCab 30minute Guarantee 2. Corporate Tie-ups 2.Integrated Marketing Campaign Brand Communication Idea “For a Smart Ride” Campaign Ideas 1.

I end up waiting another night in Mumbai and leave the next day” .Pune) Tourist Cab 32% Car-Pool 12% **Based on data received from 50 Mum-Pune frequent travellers “The Auto Drivers in Pune are a pain. 450 sometimes to travel” .Deepak Majithia (works at Cognizant) Variable Fares •Neeta Volvo fares depend on demand and change frequently •Drop spots are far away from city Intra-City Pune •Pune faces exorbitant fares/ errant rickshaw drivers • Travellers end up paying same amount for rickshaw and bus Night Travel • No buses or tourist cabs ply after 11:30 pm • IT professionals working late nights lose out on a day at home “There are no cabs/buses available at night. I end up paying Rs.Mumbai-Pune Shuttle service Non-AC Bus 18% Mumbai-Pune AC Bus 38% “I don’t like the fact that the fare demanded by buses/cabs vary depending on the time of the week/day.Dilip Manohar (works at Shell-Mumbai) Customer Insights Group 9 NAVratnas . I pay Rs. 250 sometimes and Rs. 250 for a 10km Intra-City journey from my bus-stop to my workplace” .Prabha Nadar ( works at Infosys.

Shuttle service between Mumbai-Pune-Mumbai TabExpress.Rs. 2200/-( 180 kms)+ Rs. 2400/3 •Booking can be done 1 day before journey.Attracting customers from AC buses/ Tourist cabs segment •Night travel using TabCab also available TabExpress.Individual •USP.Rs.Attracting customers from Carpool/CabPool/AC buses segment • 3 customers per trip for a comfortable ride Group 9 NAVratnas .Pooling •USP.TabExpress TABExpress. 15 per km •Booking can be done up to 1 hour before time of journey •Target Customers: Families travelling to Pune Executives willing to pay premium Airport travelers •Category Switch. Computerized Algorithm to decide feasibility •Target Customers: Weekend Travelers IT Executives Airport travelers •Category Switch.Drop facility to IT park/ Corporate SEZ’s •One side trip charge.Door to Door Pickup/Drop facility •One side trip charge.

30.Minute Guarantee 48% of respondents feel that a Radio Cab Booking method is cumbersome 64% believe that it takes 45-60 mins to book a Cab service in Mumbai The 30 minute guarantee will be a differentiating factor for TABcab TABcab currently is considered unreliable due to factors: o Long Wait times o Cancelled bookings o Unavailability during peak time o Unavailability at night o Errant drivers **Conditions Apply •Customer will be communicated about the 30 minute guarantee during booking depending on Traffic conditions •In case of non-fulfillment.10% off on Fare Solution: •30 Minutes Guarantee •Hotspots around the city will help in providing Cab Service in 30 minutes •Service available only in major areas of the city Group 9 NAVratnas .

24/.for TABcab • Do not introduce TABGold for first year Group 9 NAVratnas .Pune Intracity Need • Rapidly expanding city with a huge radius • No proper mode of transportation available • Major business hub in the state after Mumbai • Will act as feeder for TABExpress Problem Addressing • Increase operations in Pune by Year 2 • Pricing will be cheaper than Mumbai with TABGold starting at Rs.

Thane and Borivali • Reduction in waiting time • Get rid of ignorance that TABcab can only be booked online Group 9 NAVratnas .Siddhant Phutane (MBA student) • 8 hotspots identified – Nariman Point. Dadar. Kurla. Vashi. Andheri) .Urvi Vora(works in SEEPZ. Bandra.TABcab Hotspots “I don’t see many TAB Cabs in the Consumer Insightscity” • People unaware that a TABcab can be hailed like a normal cab • Perceived number of TABcabs are very less in the city Problem Addressing • Hotspots – points from where we can hail a TABcab directly “You need to book TAB Cabs online!!” . Bombay Central.

can hail TABcab in vicinity .Dilip Manohar (works at Shell-Mumbai) • Brand as : Booking within a minute!! <18 18-24 25-30 31-35 Group 9 NAVratnas 36-40 40+ .Deepak Majithia (works at confusing with 44224422 (Meru Cab) and other contacts Cognizant) Smartphone Incidence across age group • Unaware that a TABcab can be hailed like a normal cab 13% Problem Addressing “I know there is a call-a-cab facility but I • People need not remember the 8% contact details 8% 8% don’t remember the number” • Convenience to book a cab leading to better brand experience 5% 5% • Each TABcab fitted with GPS tracking.TABApp Consumer Insights • “I would rather hail a normal cab than do online booking I am unaware of my office often People did not remember TABcabasnumber (63636363) timings” .

We Drive!” Group 9 NAVratnas .TABcab-Promotion Increase Accessibility and Availability of TabCabs: Promote it as time-saving and reliable Leverage its easy means of booking: Booking should be just a click or SMS away Corporate Tie-ups • Link in Office Intranet – For convenient booking • Emphasis on late night service for the night shift employees • Pre-paid coupons to customers of corporate business partners • Booking by single SMS for registered customers Airport Pick-up/Drop Food Chain Tie-ups • Tie up with hotels and offer their customers regular service • Through flight booking portals like Makemytrip • Hotlines at airports – Make it convenient for passengers • Inflight Brochures and Bookings • Banner for SMS booking near baggage collection • Emphasis on Amby Valley and Lavasa hot spots and Pimpri industrial zone • Food chains on municipal borders of Panvel and Pune can also be covered • Campaign on the lines of “You Drink.

Promotion (contd…) Increase Accessibility and Availability of TabCabs: Promote it as time-saving and reliable Leverage its easy means of booking: Booking should be just a click or SMS away TabApp: Mobile App • People need not remember contact details of TabCabs Mass Media • Make all good features and ease of booking of TabCab well known to masses • Publicise TabCab hotspots and correct myths of the customers • Advertisements in local magazines and newspapers • TV and radio advertisement Others • Convenience of booking will lead to greater customer satisfaction and better brand recall • Campaign on the lines of: “ TabCab at the tap of your fingers!” • Automated message to promote SMS/web booking whenever a call is made to call centre • Through Social media – A dedicated page to make consumers aware of TabCab Group 9 NAVratnas .

Example tie up with a movie such as Hum Hain Raahi Caar ke To cater to the regular customers and build customer loyalty Radio partner with a popular radio channel To reach out to the customers and increase brand awareness • In Mumbai alone demand for 7000-8000 cabs: Potential for growth • Similar Demand in other cities to cater to • Future Prospects : Limited Launch in other metro cities Group 9 NAVratnas .Promotion(contd…) TabCab Tagline : For a Smart Ride !! TabCab had a tie-up with the movie Maitru ki Bijlee ka Mandola Launch frequent travellers programme Position as a cab for smart people More such tie-ups.

18 3 4000 3000 1000 116.75 37.52 4.04 60.28 6.14 _ 27.52 46.05 _ Group 9 NAVratnas 46.44 14.75 18.04 52.46 15.25 60.65 5.53 42.00 5 6000 4500 1500 174.36 _ 58.24 46.90 23.94 192.04 40.Profit & Loss Glidepath Fig (in Rs crores) Year Fleet Size Etios SX4 Revenues Fare charges Ad Revenue Total Revenues Expenses Operational Expenses Admin & Marketing Employee Costs EBITDA Interest costs Depreciation Costs PAT Ebitda/ Sales (%) Pat / sales (%) 1 1600 1200 400 46.17 23.00 6.51 23.43 89.82 2 2400 1900 500 70.86 42.16 30.00 -2.65 17.00 -10.80 11.96 .75 23.03 37.96 40.08 220.08 28.52 23.29 41.50 28.06 39.88 96.57 66.88 4 5200 4000 1200 152.32 17.28 11.66 3.04 16.00 -13.00 13.72 146.36 61.32 16.04 28.13 43.63 81.

00 1 2 3 4 5 Revenues Group 9 NAVratnas .00 100.00 0.00 -15.Revenue Model Major Costs Assumptions: • Fleet Size increases from 1674 to 6000 Revenue Sources •Depreciation •Maintenance •Salaries •Interest •Subscription Charges •In-Taxi Advertising •Vinyl Cover Advertising PBT 15.00 0.00 250.00 50.00 Revenues 10.00 1 2 3 4 5 PBT 150.00 5.00 -10.00 -5.00 200.

THANK YOU Group 9 NAVratnas .