Tab Cab V3 0 5z3c56

TABcab

Team 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

OVERVIEW 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

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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

Transformation in Auto Industry

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

• 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

Radio Cabs- Market Overview Start of Operation

2006

2006

2007

Operator Parent Company

Business Lines

Group Mega

Media Marketing, Radio Cabs, Telecom, Banking, Hospitality

Carzonrent India Pvt Ltd

Radio cabs, Car rentals, Car leasing

V-Link Fleet Solutions Pvt Ltd

Radio Cabs, Mass Transport, Fleet Solutions, Car rentals and Bus services

•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, GetMeCabs, GoCarz •More than 10 lakh engers per month across Mumbai, Bangalore, Delhi and Hyderabad • Operator Revenue ~ Rs.5007Cr

•1,50,000-2,00,000 cabs plying in Mumbai split between black and yellow cabs, 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

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COVERAGE OF CITIES Most operators have focused on building base in the high-density markets like Delhi, Bangalore, Mumbai and Hyderabad in the initial stages

AMRITSAR

LUDHIANA

CHANDIGARH DELHI

They are now targeting other big cities like Chennai, Kolkata and Pune

KOLKOTA MUMBAI

HYDERABAD BANGALORE

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Mega Cabs is the only exception to this strategy whereby the Company has spread out its operations in big and small cities (Chandigarh, Ludhiana, Amritsar)

Taxi Service in Mumbai Only 20,000 old black and yellow taxis on Greater Mumbai road and 35,000 New taxis like Maruti Alto, Wagon R, Omni, Tata Indica, Santro etc There are 54,524 taxi permits 5% of the commuters in Mumbai use taxis 2,32,002 drivers hold Taxi Driver’s Badge (Billa) which authorizes them to drive a taxi Issue of new permits for Premier Pi taxis have been frozen since November 1997

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Key Players

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Overview of Major Players Tab Cabs

Meru Cabs

Easy Cabs

Mega cabs

Incorporation Year

2012

2006

2007

2006

Fleet Size

1867

400-500

600

400-500

Largest fleet, 60 sec. to book, Brand Equity

Car Rentals, Corporate Leasing

Drivers from reputed institutes like the Institute of Driving and Training Research (IDTR) ,Mobile Apps are available

Value Proposition

New,Fresh, Luxury Toyota Etios and Maruti SX4, Infotainment

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Overview of Major Players Tab Cabs

Tariff

27/20/2 Mumbai

Operations in Cities

cont…

Meru Cabs

Easy Cabs

Mega cabs

27/20/2

20/20/1.5

27/20/0.5

Mumbai, Delhi Bengaluru, Hyderabad

Mumbai, Delhi Bengaluru, Hyderabad

Delhi, Mumbai Bengaluru, Kolkata, Chandigarh, Amritsar, Ludhiana

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Car Dealers Company

Cars Used Toyota Etios

Tab Cab

Maruti SX 4

Maruti Suzuki Esteem Mahindra Logan

Meru Cabs

Tata Indigo

Tata Indica

Toyota Corolla

Easy Cabs

Maruti Suzuki Esteem Mahindra Logan

Mega cabs

Tata Indigo

Tata Indigo

Hyundai Accent

Tata Indigo marina

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Industry Analysis and Comparison TAB Cab

Industry Overview •

Market at a nascent stage with revenue of approx. $750 million

• Total Fleet Size is close to 1847 as of Feb 2013

•

Over 10 major players across India cashing on this lucrative market

•Highest Growth rate among the major players.

•

More than 10 lakh engers per month across Mumbai, Bangalore, Delhi and Hyderabad

•Uses Best in Class Toyota Etios and Maruti SX4

•

Operators are expanding in tier 2 cities as well

•Best in class systems and fleet size growing at 66%

Customer Expectations

Meru

Easy cabs

Mega cabs

Other local Radio cabs and Black & Yellow Taxis

TabCab

Availability Keeping up the commitment

Excellent

Ease of booking

Very Good Good

Travel comfort

Average Below Average

No trouble with driver Affordability

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TABcab- an overview TAB cab is a venture by the SMS Taxi Cabs Pvt. Ltd., a subsidiary of SMS Infrastructure Ltd., 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 cabs. 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. 70 cr 700 0

=

Total Investment

104 cr Permit

+

500 cr Cars

+

96 cr

Call Centre & ancillaries

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Why Mumbai? Taxis in 1997: 63000 T Taxis in 2012: 30000

Phase I

Govt. banned cabs older than 25 years

1200 T Toyota Etios Phase II

There was a huge gap and the demand for cabs increase every day

400 Maruti T SX4

Industrial Capital and thus the number of people travelling to and in city is increasing

Phase III

Rest by DecT24 2013

TABcab- Operations The brand’s differentiating factor is the hi-tech gadgets available inside the cab for entertainment which the company fails to leverage on.

The brand’s main target customers are midlevel employees who travel within the city and to the airport frequently. The company should widen it target customer and offer tailored services for every category

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 company also hasn’t reached 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. 5000/-

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 ment posted on the cab

The maintenance charges are borne by the company

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Current D-S-T-P

D

S T P

• 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, Low Income Group

• 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, songs and 3G on the way

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Survey Brand Recall 50 40 30 20 10 0

Brand Recall

60 50 40 30 20 10 0

Direct from a stand Mobile App Prefered means to hire other than Call

Mumbai Pune by Radio Cab 60 40 20 0

Mumbai Pune by Radio Cab YES

NO

Depends on rate

**Based on a survey conducted in Mum-Pune region Total Responses:50

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7 P’S

Product

Place

Price

Promotion

People

Process

Physical Evidence Group 9 NAVratnas

7 P’s..contd Product

Price

Place

• Radio Cab Service in the category • 3 types of servicesTabCab , TabCab Gold, TabCab Express • Cabs running on CNG • White , Red and Goldprimary colors for Brand Recall

• Mumbai and Pune- twin cities roughly 160km away from one another • Inter-city service and Intra-city service • TabCab hotspots at major city junctions to increase availability

Process • Call 63636363 • Log on to www.tabcab.in • Book a Cab through the mobile application ‘TabApp’ • Locate nearest available cab /hotspot through ‘TabApp’ • Pay bill via Cash/Card, get a printed receipt

Promotion

• TabCab- Rs. 27 for 1st/ Rs. 20 for subsequent kms • TabCab Gold- Rs. 30 for 1st/ Rs. 23 for subsequent kms • TabCab Express- Rs. 2000 per trip- Cab Pool comes down to Rs. 400 per person.

People • Drivers- well trained,ed ,thorough background check • TabCab Gold- Will greet customers in English • Call Centre ExecsEnglish/Hindi/Marathi

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• Print and digital media. • Focus on popular social networks to cater to the youth i.e. facebook,twitter,youtube • iOS,Android game- on the lines of Crazy Taxi

Phy Evi • Print-digital Ads will showcase the plush interiors/ highlight comfort • ‘For Hire’ boards on top showing availability

Quantum Growth Recommendations Indianisation of Thought Process Mid size Sedan-level Chauffeur driven car still signifies 1. Status symbol 2. Standing in the society – Social status 3. Aspirational value STRENGTHS - Infotainment in-car services - Preferred taxi service at Mumbai Airport - Modern fleet of around 1674 taxis - Location tracking GPS and 24 x 7 customer - Tie-up with major bank – BoB

WEAKNESSES - Poor call centre response - High maintenance costs - Limited consumer base (Mumbai) - Complaints of overcharging and rude drivers rampant on social media websites

OPPORTUNITIES - Current demand of 7000 – 8000 radio cabs in Mumbai city - Operations Expansion into Tier I cities - Growing Affluent Market Demands - Strategic partnerships with Online Travel Portals - Social media branding

THREATS - Stiff competition from current players - Stiff fare policy due to low switching costs - Fuel Price/ taxation policy on diesel cars - Highly regulated market - Political impacts – Drivers union - mgmt disputes - Dearth of skilled drivers

SWOT ANALYSIS

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Quantum Growth Objectives

Brand Awareness Increasing Reach Product Differentiation Image creation (Top-of-mind recall)

Customer engagement

Quantum Growth Recommendations Timeline of the Strategic Recommendations 1st year

2nd year

3rd year

Rectification • Excess concentration

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

Expansion

Consolidation

• 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, 5 star hotels in Mumbai, Panvel, Lonavla, Amby Valley, Lavasa and Pune • Launch of customised mobile application with direct gateway to BoB platform • Tie up with airlines for inflight cab booking

• 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

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STRATEGY & EVENTUAL RESULT

REACH

ENGAGE

LOYALTY

MONETIZE

Critical Recommendation – 1st year Primary Research - Responses of 6 drivers of Tab Cab Average visits to /fro Mumbai city from/to Airport per month

42

Saturated market

Average Fare to/fro Mumbai city per month

Rs. 570

Average visits to Thane city and Navi Mumbai from Airport per month

22

Blue Ocean market

Average Fare from Mumbai city per month

Rs. 1090

Includes only ‘to’ charges.

Recommendations: 1. 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. 2. 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. Financially feasible model (Infrastructure boost provided by Panvel airport + resultant population migration)

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Critical Recommendation – 3rd year Market expansion phase via launching services in Pune and managing the synergetic vertical chain Tie up with major 3, 4, 5 star hotels and food chains: 1. With the launch of Mumbai-Pune shuttle service and launch of intra Pune Tabcab services, the entire Mumbai Pune corridor including expressway can be serviced 2. Generally, in hotels, the customer tends to complete the cab booking via desk reception. Hence, synergising with these hotels will enable fixed avenues of revenues 3. Special emphasis on Amby Valley and Lavasa hot spots and Pimpri industrial zone (No direct connectivity to expressway) 4. Food chains on municipal borders of Panvel and Pune can also be covered

MUMBAI

NAVI MUMBAI

PANVEL

LAVASA

LONAVLA

AMBY VALLEY

PIMPRI

PUNE

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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

60% 40% 20% 0%

Courtesy: Hyundai Research for GYMC 2013

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

Once a month

Integrated Marketing Campaign

Brand Communication Idea

“For a Smart Ride”

1. TabCab 30minute Guarantee 2. TabApp- the mobile app 3. TabCab HotSpots!!

Campaign Ideas

Execution Ideas

1. Corporate Tie-ups 2. Category Growth

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Mumbai-Pune Shuttle service Non-AC Bus 18%

“I don’t like the fact that the fare demanded by buses/cabs vary depending on the time of the week/day. I pay Rs. 250 sometimes and Rs. 450 sometimes to travel” - Prabha Nadar ( works at Infosys,Pune)

Mumbai-Pune AC Bus 38%

Tourist Cab 32%

“The Auto Drivers in Pune are a pain. I end up paying Rs. 250 for a 10km Intra-City journey from my bus-stop to my workplace” - Deepak Majithia (works at Cognizant)

Car-Pool 12% **Based on data received from 50 Mum-Pune frequent travellers

Variable Fares

Intra-City Pune

Night Travel

•Neeta Volvo fares depend on demand and change frequently •Drop spots are far away from city

•Pune faces exorbitant fares/ errant rickshaw drivers • Travellers end up paying same amount for rickshaw and bus

• 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 waiting another night in Mumbai and leave the next day” - Dilip Manohar (works at Shell-Mumbai)

Customer Insights Group 9 NAVratnas

TabExpress TABExpress- Shuttle service between Mumbai-Pune-Mumbai TabExpress- Individual

TabExpress- Pooling

•USP- Door to Door Pickup/Drop facility

•USP- Drop facility to IT park/ Corporate SEZ’s

•One side trip charge- Rs. 2200/-( 180 kms)+ Rs. 15 per km

•One side trip charge- Rs. 2400/3 •Booking can be done 1 day before journey, Computerized Algorithm to decide feasibility

•Booking can be done up to 1 hour before time of journey

•Target Customers: Weekend Travelers IT Executives Airport travelers

•Target Customers: Families travelling to Pune Executives willing to pay Airport travelers

•Category Switch- Attracting customers from AC buses/ Tourist cabs segment •Night travel using TabCab also available

•Category Switch- Attracting customers from Carpool/CabPool/AC buses segment • 3 customers per trip for a comfortable ride

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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

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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

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. 24/- for TABcab • Do not introduce TABGold for first year Group 9 NAVratnas

TABcab Hotspots “I don’t see many TAB Cabs in the Consumer Insightscity” - Siddhant Phutane (MBA student)

• 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!!” - Urvi Vora(works in SEEPZ, Andheri)

• 8 hotspots identified – Nariman Point, Bombay Central, Dadar, Bandra, Kurla, Vashi, Thane and Borivali

• Reduction in waiting time • Get rid of ignorance that TABcab can only be booked online Group 9 NAVratnas

TABApp Consumer Insights •

“I would rather hail a normal cab than do online booking I am unaware of my office often People did not TABcabasnumber (63636363) timings” - Deepak Majithia (works at confusing with 44224422 (Meru Cab) and other s Cognizant)

Smartphone Incidence across age group

• Unaware that a TABcab 13%can be hailed like a normal cab

Problem Addressing “I know there is a call-a-cab facility but I • People need not the 8% details 8% 8% don’t the number” - Dilip Manohar (works at Shell-Mumbai)

• Convenience to book a cab leading to better brand experience 5% 5% • Each TABcab fitted with GPS tracking; can hail TABcab in vicinity

• Brand as : Booking within a minute!!

<18

18-24

25-30

31-35 Group 9 NAVratnas

36-40

40+

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 ed customers

Airport Pick-up/Drop

• Through flight booking portals like Makemytrip

• Hotlines at airports – Make it convenient for engers • Inflight Brochures and Bookings

• Banner for SMS booking near baggage collection

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Food Chain Tie-ups • Tie up with hotels and offer their customers regular service

• 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, We Drive!”

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

Mass Media

• People need not details of TabCabs

• Make all good features and ease of booking of TabCab well known to masses

• Convenience of booking will lead to greater customer satisfaction and better brand recall

• Publicise TabCab hotspots and correct myths of the customers

• Campaign on the lines of: “TabCab at the tap of your fingers!”

• ments in local magazines and newspapers • TV and radio ment

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Others

• 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

Promotion(contd…) TabCab Tagline : For a Smart Ride !!

Position as a cab for smart people

TabCab had a tie-up with the movie Maitru ki Bijlee ka Mandola

More such tie-ups. Example tie up with a movie such as Hum Hain Raahi Caar ke

Launch frequent travellers programme

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

Profit & Loss Glidepath Fig (in Rs crores) Year Fleet Size Etios SX4 Revenues Fare charges Ad Revenue Total Revenues Expenses Operational Expenses & Marketing Employee Costs EBITDA Interest costs Depreciation Costs PAT Ebitda/ Sales (%) Pat / sales (%)

1 1600 1200 400

2 2400 1900 500

3 4000 3000 1000

4 5200 4000 1200

5 6000 4500 1500

46.46 15.36 61.82

70.75 18.43 89.18

116.16 30.72 146.88

152.06 39.94 192.00

174.24 46.08 220.32

17.28 11.52 4.50 28.52 23.04 16.00 -10.52 46.14 _

27.65 17.28 6.75 37.51 23.04 28.00 -13.53 42.05 _

46.08 28.80 11.25 60.75 23.04 40.00 -2.29 41.36 _

58.03 37.44 14.63 81.90 23.04 52.00 6.86 42.66 3.57

66.96 40.32 16.88 96.17 23.04 60.00 13.13 43.65 5.96

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Revenue Model Major Costs Assumptions: • Fleet Size increases from 1674 to 6000

Revenue Sources

•Subscription Charges •In-Taxi Advertising •Vinyl Cover Advertising

•Depreciation •Maintenance •Salaries •Interest

PBT

Revenues

15.00

250.00

10.00

200.00

5.00

150.00

0.00 -5.00 -10.00

PBT 1

2

3

4

5

Revenues

100.00 50.00 0.00

-15.00

1

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2

3

4

5

THANK YOU

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