Will Ola & Uber Reach Pre-COVID levels?

Will Ola & Uber Reach Pre-COVID levels?

Ride Hailing via online apps is now an established market in India with the key operators functioning in India for nearly a decade. According to Statista, the Online Ride Hailing and Taxi segment dropped nearly 75% in revenues in 2020 vs 2019. Even the 2021 recovery (at 6.7K Million USD1) was only marginally higher compared to the 2019 level. The revenue drop in 2020 is mostly attributable to COVID-19 related lockdowns and curbs. The Year 2022 promises to be a breakthrough year for shared mobility as India is looking to roar back to economic growth.  

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Given the strategic growth requirements it is imperative that the Online Ride Hailing Market now finds either new users or new (low) price points. Finding new users would be challenging as our data indicate that the online ride hailing services are already penetrated in 200+ cities in India.

Our data also suggests that Uber has lower Average Trip Duration across all Tiers. Both these points are indicative that Uber has some head room to reallocate their focus and gain grounds in lower tier markets.

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The future of shared mobility lies with growing acceptance of economical modes of transport - autos and bikes. Thus it will be interesting to see how Ola and Uber go on to develop new products and seek to grow in new markets.  

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Keep watching this space for more interesting trends and insights on Indian ecommerce and online space.

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Blog written by : Anupam Asthana

Date: 11 Apr 2022

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Vumonic Datalabs is a global consumer intelligence platform. We provide high quality, deterministically linked, large structured data that can be used to derive deep consumer,  business and market insights. Our proprietary data pipelines deliver unbiased actual transaction data collected in a privacy secure manner via large global panels.

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