The Indian e-rickshaw and on-demand ride hailing market growth are driven by growing need for public transportation for first- and last-mile connectivity, increasing demand for a low-priced convenient solution for commuting, and government incentives and environmental policies. Due to these factors, the urban and suburban areas of Delhi—NCR and towns of West Bengal and Bihar adopted around 4.5 lakh units of e-rickshaws in 2019. Of these, Delhi accounted for the major volume share in the India e-rickshaw and on-demand ride hailing market in 2019. Currently, over 10 lakh e-rickshaws are operating in India.
Increasing adoption of e-rickshaws is propelling the Indian e-rickshaw and on-demand ride hailing market growth. This growth is primarily driven by surging incidence of partnerships between private bodies and government authorities. The use of e-rickshaws in India is regulated by authorities under central and state governments, which, in turn, has led to the rise in public-private-partnership ventures in this industry. For instance, the first e-rickshaw service, to ensure last-mile connectivity from metro stations, was started by Delhi Metro Rail Corporation (DMRC) in 2017. After 2017, numerous services have been started for multiple stations.
Geographically, the Indian e-rickshaw and on-demand ride hailing market covers the entire urban framework that includes tier 1, 2, and 3 cities. The tier 1 category includes the cities of Hyderabad, Delhi, Kolkata, Mumbai, Bangalore, Pune, and Ahmedabad. Whereas, cities under tier 2 include Ranchi, Lucknow, Surat, Chandigarh, Jaipur, Nagpur, Varanasi, and Bhopal; and tier 3 cities include Gaya, Bhagalpur, Haridwar, Mathura, Udaipur, and Kharagpur. The market division covers geographical profile analysis of users in the respective cities.
The profile analysis is based on the scope of e-rickshaw services for traveling short distance, ferrying school children, work trip, metro connectivity, and others; commuting patterns of users; average distance covered and average spending on last-mile transportation; obstacles related to last-mile transportation; existing mode of last-mile transport in tier 2 and 3 towns; average distance and expenditure on transportation from nearby tier 3 towns to villages; shift toward e-rickshaws for first- and last-mile connectivity; and motivation, challenges, and recommendations for ride hailing services.
Due to the presence of numerous players, the Indian e-rickshaw and on-demand ride hailing market has a fragmented nature. Domestic players in the industry include Ola Electric Mobility Pvt. Ltd., Oye! Rickshaw (Khati Solutions Private Limited), Mauto Electric Mobility Pvt. Ltd., e-yAna (VGARCEDO Technologies Private Limited), Sheru, and SmartE (Treasure Vase Ventures Private Limited). To consolidate the competition, these companies are focusing on geographical expansion and product launches. For instance, DMRC partnered with SmartE, in February 2020, to extend its e-rickshaw services to 12 more metro stations, thereby, increasing the number to 29.
Therefore, the increasing focus toward adoption of green vehicles will drive the market growth in coming years.
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