How is the India Rental Two Wheeler Market Positioned?
The concept of two wheeler rental is not new in India. Tourist destinations like Leh & Ladakh, Kerala and Goa are full of two wheeler renting vendors offering affordable bikes to tourists for leisureIt is also solving the major problem of last mile connectivity and micro mobility in metro cities and semi urban cities where hardly any public transportation is seen. . Increase in road-trip tourism tops the list of major drivers for the increase in bike rental market size followed by traffic jams and congested locations in metro cities. In addition, rise in the fare by cab aggregators and taxi availability is also becoming one of the biggest drivers of the industry as individuals prefer to opt for an affordable transpiration for their intra city commute. Undoubtedly, the concept of two wheeler renting is booming in the country. With the quest to make bike renting quicker and hassle free process, several startups and vendors are working on their unique business models. Interesting startups and their unique offerings are building up a successful bike rental market in India. The market has attained speedy growth over the period of last 4 years from FY’2017 to FY’2020. Major companies like Bounce, Vogo, Royal Brothers, Onn Bikes, Yulu Bikes, etc. have entered the entered the market in last 5-6 years and since then the market has evolved drastically. It is growing in a two way process and yet to explore huge potential. Increase in internet penetration, smartphone and use of applications has enabled easy booking options for riders and renters.
Apart from offering high convenience to renters, it is also providing the vendors with growth opportunities by taking bookings through bike renting apps developed by startup entrepreneurs. Such apps complement the existing business models of bike vendors by giving them a platform where they can manage their fleet and track bookings.
India Rental Two Wheeler Market Segmentation, FY ’2020
India Rental Two Wheeler Market is at the Growth Stage, with organized players increasing their market penetration. The overall market in terms of fleets size increased from ~ in FY’2017 to ~ in FY’2020, growing at a double digit positive CAGR during the period.
By Market Structure
The market has continued to be dominated by the organized sector with a massive share of ~% in terms of GTV during the FY’2020. Startups have a higher presence, large fleet base and offer urban commute solutions to the individuals.
By Owned & Leased Fleet (Organized Market)
Most of the players and startups focus on an asset heavy model rather than a leased model. This helps them in having the complete control over the quality and service. Owned fleets contributed to ~% share in the organized market for FY’2020. Big players such as Bounce and Yulu own their fleets instead of working on an aggregator model.
By Major Cities
Majority of the demand for rental two wheelers generated from the southern cities in India such as Bengaluru and Hyderabad. One of the major reasons behind this is that majority of the start ups are based in these cities. Moreover, workforce migration to these cities, heavy traffic congestions have also led to the higher demand.
By Type of Two Wheeler
India rental two wheeler markets is dominated by scooters during FY’2020. This is because gearless scooters are trending in the country, among both male and female population. It is a cheaper and convenient as compared to bikes. Moreover scooters are more prevalent in tourist destinations such as Goa and Pondicherry.
By Purpose (Commuting and Leisure)
Workplace commuting is the main reason behind renting a two wheeler in India. Previously rental solutions majorly served leisure purpose and only focused upon tourist destinations but with the entrance of companies such as Bounce and Vogo, the situation has completely changed. These players majorly focus upon Point A to Point B commute and are comparatively cheaper.
By Packages Offered
Daily and hourly packages are the most sought after plan for rental services. Owing to Covid pandemic, more players are focusing upon long term rental plans as the customers would not only feel safer but also secure about having immediate access to the outside world whenever they wanted. Moreover, B2B tie-ups generally focus upon having a monthly contract.
By Booking Channel
It has been observed that presently, bookings through online apps and websites dominate the market holding a share of ~% in the rental market. Bookings in the unorganized market (tourist destinations) are mostly done via physical stores instead of online app or booking via call option.
Competition Scenario in India Rental Two Wheeler Market
India rental two wheelers market competition structure was observed to be highly fragmented with the presence of ~ 15,000 unorganized players. Although, organized players such as Bounce, Vogo, Drivezy, Onn Bikes, Yulu Bikes, Royal Brothers, and others contribute a significant share in the overall market. Pricing, models & packages offered, type of vehicles, areas of operations, vehicle & service quality, investor/client tie-ups, value added services offered, number of pick up and drop points are some of the critical parameters on the basis of which companies compete in the organized segment.
India Rental Two Wheeler Market Future Outlook and Projections
Rental two wheeler market is expected to recover from the Covid-19 pandemic and witness growth by mid of 2021. India’s young population and emerging entrepreneurial culture is all set to drive the rental industry with more investors coming forward. Corporate Companies are expected to tie up with 2W rental companies due to the surge in demand, post pandemic. In addition, more focus would be given to solving the urban commute challenges. EVs are likely to hold a relevant share in the total rental fleets in the next 5 years. Leading players are expected to launch their operations in the major Tier 1 & Tier 2 cities.
Key Segments Covered:-
By Market Structure (in Terms of Fleets and GTV)
Organized Market
Unorganized Market
By Type of Organized Market Fleets
Owned Fleets
Leased Fleets
By Major Cities (in terms of Fleets)
Bangalore
Goa
Mumbai
Pune
Jaipur
Delhi NCR
Hyderabad
By Type of Two Wheelers (in terms of Fleets)
Scooters
Motorcycles
E-Bikes
By Type of Bikes
Commuter
Sports
High End Bike
By Purpose (in terms of B2C Bookings)
Commuting
Leisure
By Booking Package (in terms of B2C Bookings)
Hourly
Daily
Weekly
Monthly
By Booking Channel (in terms of B2C Bookings)
Online App/Website
Physical Store
Booking via Call
By Usage (in terms of B2C Bookings)
Intracity Bookings
Intercity Bookings
Companies Covered:-
Bounce
VOGO Rentals
Drivezy
Yulu Bikes
ONN Bikes
RenTrip
Royal Brothers
ZopRent
Boongg
ZipHop
Wheelify
eBikeGo
RidoBiko
Bykemania
Mobycy
GoBikes
Faebikes
Key Target Audience:-
Rental Two Wheeler Players
Two Wheeler OEMs
Consultancy Companies
Industry Associations
Regulatory Bodies
Time Period Captured in the Report:-
Historical Period – 2017-2020
Forecast Period – 2020-2025
For More Information on the research report, refer to below link:
India Rental Two Wheeler Market
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Ken Research
Ankur Gupta, Head Marketing & Communications
Ankur@kenresearch.com
+91-9015378249