The taxi or cab market in India has become so competitive and attractive that a majority of people prefer leaving their cars at home and use a taxi. As the fuel prices have been rising, there is always a shortage of public transportation. Getting into this sector is a good idea, considering that it is a typically vendor-driven market and doesn’t have huge entry barriers.
So here are some points that you should keep in mind while setting up a taxi business.
What is the Market Scope?
Though there are hundreds of players in the market, the good news is that this sector is welcoming to the newcomers. But before stepping in, you must make sure that you have something new to offer or have a niche and come up with a robust value proposition. Data shows that the taxi fares have gone up by 25% in the recent past in India. And the business scope is more profitable in the urban areas as compared to rural or semi-urban areas.
