Lockdowns to affect recovery of ride-hailing sector

The share of cab rides in overall ride-bookings declined from 59% in the January to March quarter in 2020, to 51% for the same quarter in 2021.Premium
The share of cab rides in overall ride-bookings declined from 59% in the January to March quarter in 2020, to 51% for the same quarter in 2021.
 2 min read . Updated: 03 May 2021, 08:50 PM IST Staff Writer

The recovering ride-hailing sector is likely to see a 30% - 40% drop in volumes in the coming months, as many states including Maharashtra, Delhi and Karnataka amongst others go into lockdown, according to estimates from management consultancy Redseer Consulting.

The mobility segment including cab, auto and bike taxis, showed almost 69% recovery in volumes for the first quarter of 2021, when compared to pre-covid levels, clocking close to 78 million rides in March 2021.

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Total mobility rides clocked by the sector stood at 113 million in January last year, during pre-covid times.

“With the recent covid-19 developments in the country, the recovery is likely to go on a downward trajectory with a drop of 30-40% in the coming months as many states like Maharashtra, Delhi and Karnataka among other states go into lockdown," added Redseer.

Auto rides witnessed the highest recovery, of 89%, clocking 25 million rides in March this year. Bike taxis and cab rides showed 72% and 60% recovery compared to pre-covid levels, clocking 14 million and 40 million rides in March 2021, respectively

Further, the share of cab rides in overall ride-bookings declined from 59% in the January to March quarter in 2020, to 51% for the same quarter in 2021.

As drivers shifted to online platforms seeking more demand, auto rides picked up market share to 31% in the first quarter this year, as compared to 23% during the same period last year. Bike taxi bookings continued to contribute to 17% of the overall demand.

“After more than nine months of lockdown, many offices resumed at 50% capacity leading to high growth in the category of cab taxis. As the second wave of pandemic struck, March 2021 again witnessed a decline in the number of rides," said Redseer.

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Now, the management consultancy believes that lockdowns will further affect recovery of cab aggregators in the coming months.

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