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The rise of intracity mobility startups can be attributed to the teething troubles the existing transportation system suffered from like the non-availability of vehicles at the right place, exploitation by the drivers, lack of safety, and road congestion. With the new age consumer increasingly choosing to stay 'asset-light', rental options like Ola and Uber will continue to thrive. In today's post, we understand the opportunity and players in the market, look at the prominent themes emerging in the space, and wrap by looking at a few problems that the sector has seen.
Understanding the space
The mobility space in India is huge and growing! An average Indian spends 7% of his day in commuting to office, with an average speed of 24kmph in major cities. To solve this multi-faceted issue numerous startups have emerged, each trying to solve a piece of the puzzle, leaving the customer spoilt for choice. You want convenience you can choose Ola/Uber, you want cheaper options you can use Shuttl/Rapido/Moto. If you are in sales and need to travel extensively then you can take Vogo/Bounce. Folks with a sustainability bent can hop onto a Yulu/ Zypp. What had begun as an exercise in capturing a largely unorganized fragmented market, has transformed into new ways of doing business and new niche markets. For instance, now Zoomcar provides an option of P2P carsharing, wherein car owners who do not use their cars extensively can lend their cars for a shorter duration. The sheer size and scale of the space continue to attract innovation, backed by a tonne of capital!
Next, let's try to look at the prominent themes emerging in the space.
As with any major sector, we find the top VC funds pumping in loads of cash. Matrix has taken positions in Ola Electric, Oye, & Vogo; Nexus in Rapido; S