Changing paradigms in the taxi industry in India

With focus on the taxicab aggregator model adopted by players like Ola Cabs and Uber operating in India, the article begins with the evolution and growth of the taxi industry in India followed by the entry of the radio-taxi operators. With the development of the ecosystem of internet penetration and rising mobile users, the taxicab aggregator business has received a robust fillip because in their business model the firm's mobile app allows customers with smart phones to submit a trip request which is then routed to their drivers who help complete the trip. The growth of taxicab/radio-share cab aggregators led the radio-taxi operators to relook at their operations prompting players like Meru Cabs to adopt a hybrid model. In the article, the business model of Ola Cabs and Uber India is explained in detail. Further the intense rivalry between them in the taxicab aggregator business is covered in depth. While the taxicab industry is poised towards bright future, it is acknowledged that the regulatory environment needs to keep evolving over time and keep pace with ever changing needs of the market.