TABcab

Team Members
Mrinal Bhirud Pritesh Chaudhary
Sagar Jadhav Yogesh Jadhav
Lipika Inerkar Umesh Mahajan
Vishal Parekh Pooja Sharma
Sameer Shinde Vivek Nambiar
Vivek Yadav

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

Group 9
NAVratnas
 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 • Massive transformation in the Indian

due to growth of various sectors
• This segment started
demanding and has the ability
to pay for better services
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
•Total Radio Cab segment
Start of Operation 2006 2006 2007 is 15000+ cabs in size
•3 major players holding
70% of market share
•Over 10 players across
Operator India cashing on this
lucrative market
•Other Operators include
Parent Company Group Mega Carzonrent India V-Link Fleet
TABCcab, GetMeCabs, GoCarz
Pvt Ltd Solutions Pvt
Ltd
•More than 10 lakh passengers
Media Marketing, per month across Mumbai,
Radio cabs, Radio Cabs,
Business Lines Radio Cabs, Bangalore, Delhi and
Car rentals, Mass Transport,
Telecom, Hyderabad
Car leasing Fleet Solutions,
Banking, • Operator Revenue ~
Car rentals and
Hospitality Rs.5007Cr
Bus services

•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

Group 9
NAVratnas
COVERAGE OF CITIES

Most operators have focused on

building base in the high-density
AMRITSAR markets like Delhi, Bangalore,
Mumbai and Hyderabad in the
LUDHIANA CHANDIGARH initial stages
DELHI They are now targeting other
big cities like Chennai,
Kolkata and Pune

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

BANGALORE

Group 9
NAVratnas
 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 Padmini taxis have been frozen since
November 1997

Group 9
NAVratnas
Key Players

Group 9
NAVratnas
 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

New,Fresh, Largest fleet, 60 Car Rentals, Drivers from
Value Proposition Luxury sec. to book, Corporate reputed
Toyota Etios Brand Equity Leasing institutes like
and Maruti the Institute of
SX4, Driving and
Infotainment Training
Research (IDTR)
,Mobile Apps
are available

Group 9
NAVratnas
 Overview of Major Players cont…

Tab Cabs Meru Cabs Easy Cabs Mega cabs

Tariff 27/20/2 27/20/2 20/20/1.5 27/20/0.5

Mumbai Mumbai, Mumbai, Delhi,
Operations in Delhi Delhi Mumbai
Cities Bengaluru, Bengaluru, Bengaluru,
Hyderabad Hyderabad Kolkata,
Chandigarh,
Amritsar,
Ludhiana

Group 9
NAVratnas
 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

Maruti Suzuki Esteem Mahindra Logan

Easy Cabs Tata Indigo Hyundai Accent

Tata Indigo
Mega cabs Tata Indigo marina

Group 9
NAVratnas
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 passengers 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%
Other local
Radio cabs and
Black & Yellow
Customer Expectations Meru Easy cabs Mega cabs TabCab
Taxis
Availability
Keeping up the
commitment
Excellent
Ease of booking Very Good
Good
Travel comfort Average
Below Average
No trouble with driver

Affordability

Group 9
NAVratnas
 TABcab- an overview
Why Mumbai?
TAB cab is a venture by the SMS Taxi Cabs Pvt.
Ltd., a subsidiary of SMS Infrastructure Ltd., a Taxis in 1997: 63000
large infrastructure group based out of Nagpur T Phase I
Taxis in 2012: 30000
1200
It was launched in Mumbai in February 2012 Govt. banned cabs T
Toyota
older than 25 years Etios
Mumbai’s leading phone-fleet operator with Phase II
1674 Tab cabs. There was a huge
gap and the demand 400 Maruti
T
The company had been awarded licenses for a for cabs increase SX4
total of 4,000 phone fleet taxis by Government every day
of Maharashtra through a first time tender for Phase III
phone fleet taxis. Industrial Capital
and thus the Rest by
70 cr number of people DecT24
2013
700 = 104 cr + 500 cr + 96 cr
0 travelling to and in
Total Investment Permit Cars Call Centre & ancillaries
city is increasing

Group 9
NAVratnas
 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 mid-
level 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
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 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 The driver then needs to pay Rs.
1100 to the company and can keep
reached upcoming areas in and the rest of the earning for himself
around the city
The driver gets only one holiday
monthly

The drivers also get Rs. 400 for

every advertisement posted on the
Educate the Increase Tailored Enter untapped cab
masses Accessibility Services markets
The maintenance charges are
borne by the company

Group 9
NAVratnas
Current D-S-T-P
• Use of only Toyota Etios with typical White and Red color to

D
differentiate from others
• Every TABcab has a 3G tablet in it for entertainment of customers

• Geographical – Urban, Rural

S
• Income group -High income Group, Mid Income Group, Low
Income Group

• Urban customers in Mumbai only

T
• High income group, Upper middle income group

• Service that offers travel with luxury, comfort of large space in

P
Toyota Etios
• Entertainment with latest movies, songs and 3G on the way

Group 9
NAVratnas
 Survey
Brand Recall 60
50
50 Direct
40 40
from a
30 30
20 stand
10 Brand Recall 20
Mobile
0 10
App
0
Prefered means to
hire other than Call
Mumbai Pune by Radio Cab
60
40
20 Mumbai Pune
0 by Radio Cab
**Based on a survey conducted in Mum-Pune region
YES NO Depends Total Responses:50
on rate
Group 9
NAVratnas
 7 P’S

Product Place

Price Promotion

People Process
Physical
Evidence
Group 9
NAVratnas
 7 P’s..contd
Product
• Radio Cab Service in
the premium category
• 3 types of services-
TabCab , TabCab Gold,
TabCab Express
• Cabs running on CNG
• White , Red and Gold-
primary colors for Brand
Recall
Place Price Promotion
• Mumbai and Pune- twin • TabCab- Rs. 27 for 1st/ Rs. • Print and digital media.
cities roughly 160km 20 for subsequent kms • Focus on popular social
away from one another • TabCab Gold- Rs. 30 for 1st/ networks to cater to the
• Inter-city service and Rs. 23 for subsequent kms youth i.e.
Intra-city service • TabCab Express- Rs. 2000 facebook,twitter,youtube
• TabCab hotspots at per trip- Cab Pool comes • iOS,Android game- on
major city junctions to down to Rs. 400 per person. the lines of Crazy Taxi
increase availability

Process People Phy Evi

• 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
• Drivers- well
trained,registered ,thorough
background check
• TabCab Gold- Will greet
customers in English
• Call Centre Execs-
English/Hindi/Marathi
• Print-digital Ads will
showcase the plush
interiors/ highlight
comfort
• ‘For Hire’ boards on top
showing availability

Group 9
NAVratnas
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 Quantum Growth

WEAKNESSES
- Infotainment in-car services Objectives
- Poor call centre response
- Preferred taxi service at Mumbai Airport
- High maintenance costs
- Modern fleet of around 1674 taxis Brand
- Limited consumer base (Mumbai)
- Location tracking GPS and 24 x 7 customer Awareness
- Complaints of overcharging and rude
support
drivers rampant on social media websites Increasing
- Tie-up with major bank – BoB
SWOT Reach
OPPORTUNITIES ANALYSIS THREATS Product
- Current demand of 7000 – 8000 radio cabs - Stiff competition from current players Differentiation
in Mumbai city - Stiff fare policy due to low switching costs
Image creation
- Operations Expansion into Tier I cities - Fuel Price/ taxation policy on diesel cars (Top-of-mind recall)
- Growing Affluent Market Demands - Highly regulated market
- Strategic partnerships with Online Travel - Political impacts – Drivers union - mgmt Customer
Portals disputes engagement
- Social media branding - Dearth of skilled drivers

Group 9
NAVratnas
 Quantum Growth Recommendations
Timeline of the Strategic Recommendations
1st year 2nd year 3rd year
REACH

STRATEGY & EVENTUAL RESULT

Rectification Expansion Consolidation
• Excess concentration
• Big Ticket Idea:
of services in certain • Frequent travellers
Mumbai – Pune ENGAGE
parts of the city TabCab Card:
Shuttle Service
• Elimination of current Launch of frequent
• Big Ticket Idea:
perception that tab travellers programme
Launch of cab
cabs can be hired only to cater regular
services in Pune city
via customers
• Vertical integration:
telecommunication • Tie up with corporate
• Excess utilisation of
Tie-up with major 3,
entities LOYALTY
4, 5 star hotels in
exterior car body for • Elimination of current
Mumbai, Panvel,
marketing other perception that tab
Lonavla, Amby Valley,
brands cabs can be hired only
Lavasa and Pune
• Communication via
• Launch of customised
failure of utilities and telecommunication
services provided
mobile application
• Limited launch (Soft
MONETIZE
with direct gateway to
intra car opening to gauge
BoB platform
• Lack of emphasis on response) in other
• Tie up with airlines for
GPS & safety aspects metros in India
inflight cab booking
of the car service

Group 9
NAVratnas
Critical Recommendation – 1st year
Primary Research - Responses of 6 drivers of Tab Cab

Average visits to /fro Mumbai city 42 Saturated market

from/to Airport per month
Average Fare to/fro Mumbai city per Rs. 570
month
Average visits to Thane city and Navi 22 Blue Ocean
Mumbai from Airport per month market
Average Fare from Mumbai city per Rs. 1090 Includes only ‘to’
month 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
upcoming Panvel airport + resultant population migration)

Group 9
NAVratnas
 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: Frequency of accessing internet on mobile/tablet
4-5 times 3-4 times Once a Once in Once a
1. With the launch of Mumbai-Pune shuttle service and launch of a day Daily a week week 15 days month
intra Pune Tabcab services, the entire Mumbai Pune corridor 60%
including expressway can be serviced
2. Generally, in premium hotels, the customer tends to complete the 40%
cab booking via desk reception. Hence, synergising with these 20%
hotels will enable fixed avenues of revenues
3. Special emphasis on Amby Valley and Lavasa hot spots and Pimpri 0%
Courtesy: Hyundai Research for GYMC 2013
industrial zone (No direct connectivity to expressway)
4. Food chains on municipal borders of Panvel and Pune can also be Launch of customised
covered mobile application
with direct gateway
to Bank of Baroda
Bank platform
MUMBAI NAVI MUMBAI PANVEL
• Elimination of inter
dependence on
online portals who
LAVASA LONAVLA AMBY VALLEY charge exorbitant
commission
• Decrease in costs
due to limited Call
PIMPRI PUNE centre operations

Group 9
NAVratnas
Integrated Marketing Campaign

Brand Communication Idea “For a Smart Ride”

1. TabCab 30minute Guarantee

Campaign Ideas 2. TabApp- the mobile app
3. TabCab HotSpots!!

Execution Ideas 1. Corporate Tie-ups

2. Category Growth

Group 9
NAVratnas
 Mumbai-Pune Shuttle service
“I don’t like the fact that the fare
Non-AC Mumbai-Pune demanded by buses/cabs vary
Bus depending on the time of the
18% AC Bus week/day. I pay Rs. 250 sometimes
38% and Rs. 450 sometimes to travel”
- Prabha Nadar ( works at Infosys,Pune)
Tourist
Cab
32% “The Auto Drivers in Pune are a pain. I
Car-Pool end up paying Rs. 250 for a 10km
12% Intra-City journey from my bus-stop to
my workplace”
**Based on data received from 50 Mum-Pune frequent travellers
- Deepak Majithia (works at Cognizant)

Variable Fares Intra-City Pune Night Travel

“There are no cabs/buses available at
•Neeta Volvo fares •Pune faces exorbitant • No buses or tourist
depend on demand fares/ errant rickshaw cabs ply after 11:30 night. I end up waiting another night in
and change drivers pm Mumbai and leave the next day”
frequently • Travellers end up • IT professionals - Dilip Manohar (works at Shell-Mumbai)
•Drop spots are far paying same amount working late nights
away from city for rickshaw and bus lose out on a day at
home

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
•Booking can be done up to 1 hour before time of
journey
•Target Customers: Families travelling to Pune
Executives willing to pay premium
Airport travelers
•Category Switch- Attracting customers from AC buses/
Tourist cabs segment
•Night travel using TabCab also available
•One side trip charge- Rs. 2400/3
•Booking can be done 1 day before journey,
Computerized Algorithm to decide feasibility
•Target Customers: Weekend Travelers
IT Executives
Airport travelers
•Category Switch- Attracting customers from
Carpool/CabPool/AC buses segment
• 3 customers per trip for a comfortable ride

Group 9
NAVratnas
 30- Minute Guarantee

48% of respondents feel that a Radio Cab Booking method Solution:

is cumbersome
64% believe that it takes 45-60 mins to book a Cab service •30 Minutes Guarantee
in Mumbai •Hotspots around the city
The 30 minute guarantee will be a differentiating factor for will help in providing Cab
TABcab Service in 30 minutes
•Service available only in
TABcab currently is considered unreliable due to factors: major areas of the city
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

Group 9
NAVratnas
 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
“You need to book TAB Cabs online!!”
directly - 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
• People did not remember TABcabasnumber (63636363)
I am unaware of my office often
timings”
- Deepak
confusing with 44224422 (Meru Cab) Majithia
and other(works at
contacts
Smartphone Incidence across age group
Cognizant)
• 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 remember the 8%
contact details
don’t 8%
remember 8%
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 36-40 40+

Group 9
NAVratnas
 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
registered customers
Airport Pick-up/Drop Food Chain Tie-ups
• Tie up with hotels and offer
their customers regular
• Through flight booking
service
portals like Makemytrip
• Emphasis on Amby Valley
• Hotlines at airports – Make
and Lavasa hot spots and
it convenient for passengers
Pimpri industrial zone
• Inflight Brochures and
• Food chains on municipal
Bookings
borders of Panvel and Pune
can also be covered
• Banner for SMS booking
near baggage collection
• Campaign on the lines of
“You Drink, We Drive!”
Group 9
NAVratnas
 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 Others

• Make all good features and

• People need not remember
ease of booking of TabCab
contact details of TabCabs
well known to masses • Automated message to
promote SMS/web booking
• Convenience of booking will
• Publicise TabCab hotspots whenever a call is made to
lead to greater customer
and correct myths of the call centre
satisfaction and better brand
customers
recall
• Through Social media – A
• Advertisements in local dedicated page to make
• Campaign on the lines of:
magazines and newspapers consumers aware of TabCab
“TabCab at the tap of your
fingers!”
• TV and radio advertisement

Group 9
NAVratnas
 Promotion(contd…)

TabCab Tagline : Position as a cab for smart people

For a Smart Ride !!

TabCab had a tie-up with the More such tie-ups.

movie Maitru ki Bijlee ka Example tie up with a movie such
Mandola as Hum Hain Raahi Caar ke

Launch frequent travellers To cater to the regular customers

programme and build customer loyalty

Radio partner with a popular To reach out to the customers and

radio channel 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 1 2 3 4 5
Fleet Size 1600 2400 4000 5200 6000
Etios 1200 1900 3000 4000 4500
SX4 400 500 1000 1200 1500
Revenues
Fare charges 46.46 70.75 116.16 152.06 174.24
Ad Revenue 15.36 18.43 30.72 39.94 46.08
Total Revenues 61.82 89.18 146.88 192.00 220.32
Expenses
Operational Expenses 17.28 27.65 46.08 58.03 66.96
Admin & Marketing 11.52 17.28 28.80 37.44 40.32
Employee Costs 4.50 6.75 11.25 14.63 16.88
EBITDA 28.52 37.51 60.75 81.90 96.17
Interest costs 23.04 23.04 23.04 23.04 23.04
Depreciation Costs 16.00 28.00 40.00 52.00 60.00
PAT -10.52 -13.53 -2.29 6.86 13.13
Ebitda/ Sales (%) 46.14 42.05 41.36 42.66 43.65
Pat / sales (%) _ _ _ 3.57 5.96

Group 9
NAVratnas
 Revenue Model
Major Costs Revenue Sources

Assumptions:
•Depreciation •Subscription Charges
• Fleet Size increases •In-Taxi Advertising
from 1674 to 6000 •Maintenance
•Vinyl Cover
•Salaries
Advertising
•Interest

PBT Revenues
15.00 250.00
10.00 200.00
5.00 150.00
0.00 PBT 100.00 Revenues
1 2 3 4 5
-5.00
50.00
-10.00
0.00
-15.00 1 2 3 4 5

Group 9
NAVratnas
THANK YOU

Group 9
NAVratnas