Meru Cabs, a radio taxi provider, hopes to expand its fleet by tying up with car owners with one or two cars,according to its CEO Siddhartha Pahwa.
There are nearly 14 lakh cabs. However, nearly 95 per cent of them are in the unorganised sector with owners hiring one or two cars, he said.
The car rental market is nearly $10 billion (across all segments) and is growing at 12-13 per cent with customers looking for quality service at a reasonable price.
Typically, some of the large brands source the cars from such single owners. However, Meru has already started converting some of the single or two vehicle owners in to its fold by wooing them with various welfare measures, in addition to taking care of their vehicles, accident insurance for drivers and supporting their children’s education. This is being done in four cities, and will be extended to 10 next year, he told Business Line .
Meru, with revenue of nearly ₹450 crore, recently launched its service in the city after Mumbai, Delhi, Bangalore, Hyderabad, Jaipur and Ahmedabad. It began with 100 cars here and will increase the fleet to 500 in three months, said Pahwa. The Mumbai-based company has around 5,500 vehicles and completed over 35 million trips, he said.