The increasing competition is helping- with new players entering the Indian market, it is assisting the category to get the long due attention. The industry which moves travelers across India is moving at a fast pace with new technologies, new business models, demanding customers, committed service providers are all helping the industry to consolidate amongst organized players and build Indian brands which can expand beyond the borders of India.
The car rental market in India is booming with the creation of new opportunities as several international and national companies are entering the market in major cities. These companies are offering various services to travelers, be it a chauffeur driven car, a special pick up service, corporate services and much more. The Indian taxi market is pegged at USD 9 billion (Rs 54,000 crore), of which less than 10% is organized. The cab business has emerged as one of the fastest growing businesses in the Indian transportation sector. In the past, passengers at airports, railway stations and bus terminals or those wanting transport at odd hours of the day had to depend on unreliable public taxis, often having to pay much more than the actual rates. The next decade will witness about 500,000 taxis being replaced and another 500,000 new taxis getting inducted in major cities.
The Indian Car rental business is growing rapidly at a (CAGR) of around 12% and is expected to be worth around USD 15 billion within next 5 years with the organized sector having almost 50% of this market . The organized sector differentiates itself from the unorganized sector in terms of its service parameters such as quality of service, reliability, trained drivers, larger fleet size, monitored prices, etc. The challenge though, remains to ensure a smooth and consistently reliable service standard for which fleet upgrade and induction of technology is critical. The growth of car rental in India has remained consistent and gradual, with organized players increasingly investing in luxury cars to cater the demands of their customers. Rise in personal incomes, improved road infrastructure and increased volumes of both inbound and domestic tourists are the chief factors for growth in rental market.
The next five to ten years will witness a boom in the industry, which will outclass the old players present in this segment. Owing to this cut throat competition, the car rental companies are going an extra mile to ensure that every need of the customer is kept in mind. Apart from traditional car rental companies, there is a lot of direct and indirect competition on the anvil. With variations in the model of business, entry of new players varies from demarcated fleet to hourly rates to just being an intermediary connecting drivers with passengers. Some of these players neither own the vehicles nor maintain them, but only act as a marketplace. However, one will be able to be a long term player and benefit from operating a substantial fleet with a wide range of options. These options need to be centric to the needs and wants of the consumer and innovative enough to re-define their choice as well as ground transportation in India.
Carzonrent with its market leadership built through its unique positioning offering complete bouquet of end-to-end long and short term car rental solutions through its fleet of 7500 cars across the country and perhaps is the first and the only player to offer complete 360 degree solutions. Carzonrent is the only company which says- ‘ you need a car for 20 minutes or for 4years, we have a car for you'. Carzonrent has set up a 24x7 customer support center to bring uniformity in operations. We value the comfort of our customers and make sure we use technology to create value at every step of the value chain. A Global Positioning System, or GPS, helps the driver reach the destination on time without causing any discomfort to the customer. The service is convenient as it is available across major cities and can be booked through web or phone. We also provide customers a choice of paying in cash or through a card. Last year, Carzonrent launched "MYLES", self-drive option for all discerning users offering daily and hourly rentals of a whole range of cars across 16 cities in India. "Myles" has the potential to change the dynamics of Indian public transport system and road travel in India.
As a large dynamic country bridging the divide between its million cities, car rental will be the next engine of growth for the travel in India. And as the direct and indirect competition is changing the car rental market rapidly, quality and innovation are key factors to help continue this growth.