The time of ‘smart’ decision is up and hence youngster and other potential car buyers are calculating the potential expenditure a car have. This calculation where traffic jams, maintenance and mobility are a few of the parameters are giving a potential threat to the automobile companies.
The threat:
Mobile based application companies like UBER and OLA cabs are now the new trend in the car transportation. Young guns who will to have their own transportation medium (car) are now opting for the extremely fast taxi services.These services are highly cost effective and fast in their own sphere. This is in turn pushing the boundaries of the dreams of ‘buying a car’ and replacing it with the diligent move of booking a cheap taxi.
What did Mr. Mahindra said?
“The age of access being offered by taxi-hailing apps like Uber and Ola is the biggest potential threat to auto industry. Since these apps operators have made transpiration a commodity, (auto) sales could be hit and volumes get impacted. A lot of youngsters who can own vehicles today don’t want to own one, but only need access to transportation. The job of automobile manufacturers is to passionately build something that others love to own,” Mr. Anand Mahindra, the chairman of Mahindra group said on the exponential growth of the taxi services.
The growth of Taxi service in India:
The taxi service in India has grown leaps and bounds with hundreds of thousands of daily travellers using the services. Not only this, investors have an amazing believe in the potential iof the service in India and hence UBER has already decided to put around $1Billion in India as an investment. OLA is already having millions of dollars of the investment in its kity. There are other cab services like TaxiforSure (now acquired by OLA), Meru, Tabcab etc which are making a strong impact in the market.
The indication of Mr. Mahindra is clear, it is about a product not only efficient but also smart and a must have. The indication is the next step to the future is the development of the smart cars where fuel efficiency would not be boasted as a USP.
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