According to the report, the ride-hailing market is estimated to have a total turnover of USD26 billion in 2020. It has been projected to grow at a compounded annual growth rate (CAGR) of 19.1% and to reach a turnover of USD52.5 billion by 2024.
This decade is crucial for electrification of mobility in India. A slow transition would mean tens of millions of additional combustion engine vehicles on Indian roads
“Ride-hailing is growing fast in India and we need to ensure that this progress is sustainable. BluSmart’s fleet with Mahindra’s eVerito sedan has shown that electric ride-hailing is both technically and financially viable today. This WBCSD report summarises its implementation experience and will further help others to venture into the EV fleet segment,” Mahesh Babu, MD and CEO, Mahindra Electric Mobility Limited, said.
Fleet operators must devise ways to utilise the EVs as high as possible so that the lower running expense advantage can be maximised to attain superior unit economics in comparison with ICE vehicles and generate greater revenue.
Also, owing to the higher utilisation, electrification of a ride-hailing car today could save 4.75 times the emissions saved due to the electrification of a private car.
Ride-hailing business models in most countries are based on improving vehicle utilisation of privately-owned vehicles.
However, due to regulatory restrictions in India, traditional app-based ride-hailing services in the country rely on driver-partners owning vehicles and driving them through the day to recover costs as well as earn a living.
According to WBCSD’s India Business Guide to EV Adoption, most driver-partners are not yet comfortable owning EV assets, primarily due to limited understanding of EV technology and economics, limited or no access to public charging infrastructure, inability to individually finance EVs that usually have a higher upfront cost as well as anxiety stemming from a limited range of existing vehicles available in the Indian market.