Delhi, India, November 02, 2020 --(PR.com)-- Shared mobility is rising at a sturdy pace. Changing ownership patterns of daily commuters are aiding the growth. Inherent tailwinds in the market such as the increasing cost of private vehicle ownership, increasing mobile internet penetration and the rise of digital payment options are also boosting the shared mobility market. India�s diverse population demographics and cultures present a unique and attractive playground for Indian and global brands alike, creating an opportunity of scale for expansion.

Praxis Global Alliance, a leading management consulting and advisory firm, deep dives into the shared mobility market in India in their latest automotive report. The study includes a shared mobility market overview, regulatory framework, segment-wise market share and growth, and consumer behavior and personas. The report also lays focus on implications on shared mobility and key investment trends arising from the COVID-19 outbreak.

Some key implications and takeaways from the study include:

- Increasing vehicle density on roads growing at a CAGR of 6% with 41 vehicles/km in 2016 has made Indian cities among the most congested globally. This is amplified by low usage of public transport i.e. 5% of total trips and 85% of all commute occurring on the road

- Daily commute market grew by CAGR 10% from FY16 to FY20 with the highest growth rates across 2W, 4W taxi, auto segments. The market is expected to be worth US$ 83B in FY22 and recover fully to pre-COVID (FY20) level by Q1FY23

- Barring 2W taxi, the regulatory framework for other modes of shared mobility is well-defined and with inherent tailwinds in the market makes it possible for shared mobility to be a way of road transportation in the future

- Penetration of online bookings is quite low overall across segments accounting for only 6%, corresponding to about 2% in bus, 100% in cab aggregators, 5% in 3W auto-rickshaw, and 90% in 2W rental and taxi space

- 4W taxi market in India is largely unorganized with the dominance of Maxi cabs and private cabs; popular aggregators like Ola, Uber, and Meru Cabs capture market share of US$ 3.1B in a US$ 19B market

- 2W rental and taxis are a relatively small market valued at US$ 0.15B in FY19 but has grown rapidly in the last 3 years at 98% CAGR; 70% market constituted by bike taxis with Rapido and Ola holding 40% of the market

- Shared mobility in India attracted a total of US$ 4.4B in private equity funding during 2015-20 with 80% of funding received by cab aggregator companies, followed by 2W taxi and rental startups which received 13% of total investment. In 2020 (YTD till 20th October, 2020), the total funding received in shared mobility space is US$ 165M compared to US$ 1.2B funding received in 2019

Sharing his views on the analysis, Aryaman Tandon, Director, Praxis Global Alliance said, �With increased internet penetration, consumers now have several options for commuting through app-based ride-hailing and rental services. Due to the current pandemic, shared mobility and rental faced a temporary slowdown; demand for shared vehicles declined as various industries quickly adjusted to remote work. However, post-COVID-19, inherent tailwind, and economic factors will enable the growth of the segment. The shared mobility market is expected to fully recover to pre-COVID-19 levels by Q1FY23.�

The COVID-19 pandemic has crashed the shared mobility sector due to reduced public mobility, companies like Bounce, Yulu recorded a 40-50% drop in rides across all cities before suspending operations.

The decline in ridership is likely to continue having serious implications for key stakeholders in the market leading to lowered revenue and stock prices for players. Effusion of new capital for companies will also be difficult as investors become more conservative with capital.

About Praxis: Praxis Global Alliance is the next-gen management consulting and business research services firm revolutionizing the way consulting projects are delivered. It delivers practical solutions to the toughest business problems by uniquely combining domain practitioner expertise, AI-led research approaches, and digital technologies. The company operates four business units including Praxis Global Alliance Financial Investor Group (FIG) offering pre-deal support, commercial due diligence, post-acquisition value creation, Praxis Global Alliance Business Enablement and Transformation (BET) for practitioner-led business advisory and consulting, PGA Labs focused on technology-led business and market research and tools, and PraxDigital� delivering data engineering and analytics, AI, OpenData and visualization solutions to clients across verticals. Present in 4 locations in India and Singapore, Praxis Global Alliance works with C-suite to the front-line executives across business streams helping them with end-to-end business enablement, organizational transformation, and revenue maximization support in an agile environment.

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