Taxi-apps To Eat Automobile Sales

Taxi-apps To Eat Automobile Sales

For decades now, environmental activists have been insisting on using public transportation. This would help in reducing traffic on the roads as well as reducing pollution. In a way it will contribute to a clean and green planet. But, wait! Are car owners taking this too seriously and giving up their cars?

For years, the automobile industry in India has been flourishing. But, today the expansion of the automobile industry is being threatened by growing popularity of taxi hailing appliances such as Uber, Ola and Taxi For Sure. These cab rental and taxi services are pushing people to give up ownership of their cars which could pose a threat to auto industry sale volumes.

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Today, we are living in the age of access. Booking a taxi or a cab is just a button or call away. It has become that simple. All you need to do is, feed in you location and within few minutes you will have a cab at your service. And what more? These taxi-hailing appliances are offering the best of cars with the best of drivers. There are an increasing number of people who want access to transportation but do not want to own the object of transportation. These taxi services offer all types of cars at different base prices. From a Tata Indicia to a luxurious Mercedes, you can have your favourite car at your doorstep. When accessibility has become that simple, why would people buy a car?

Today, due to Ola and Uber, one doesn’t necessarily have to own a car. This is automobile manufacturers in India have started to worry. They are fidgety about taxi-hailing apps which have taken the streets by storm. Because of the convenience of using them, their availability and cheap price, people are lured towards them and have pushed individuals who aspired to buy cars to drop their plans and opt for convenience instead.

This trend of giving up car ownership is mostly being observed with the middle-class. The rich and affluent are still buying their own cars because they can afford to do so. Certain middle-class families still view car ownership as a status symbol.

Automobile manufacturers in India such as Mahindra are not viewing Ola and Uber as a threat. Instead they are looking at making new car models which are much more appealing than the previous ones so that they can cater to these taxi-hailing apps. They plan to leverage the opportunity by supplying cars to these aggregators. If most of the automobile manufacturers in India adopt this approach, they will not face a decline in their auto sales.

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