Transportation and Logistics
Commercial due diligence on a shared mobility service provider
09 May 2019
  • Client description: A global private equity fund interested in investing in a shared mobility service provider
  • Opportunity: due diligence case to profile the business, understand the market, benchmark the product, estimate standalone revenue and analyze the effectiveness of the service in catering to the daily commuting needs for users with an aim to invest in a shared mobility service provider
Our Approach
  • Conducted market sizing exercise along with growth projections
  • Product benchmarking and competitive analysis to understand market attractiveness and differentiation
  • Conducted N>1000 customer survey to understand usage frequency, use cases, propensity to pay
  • Conducted >50 interviews with own and competitor customers to understand drivers of usage 
  • Estimated 5-year revenue & EBITDA growth based on key performance matrices of the shared mobility service provider

Key Insights / Outcomes

Penetration of mass road transit systems like buses in India, standing at 1.2 buses available per 1,000 people, is quite lower than required and the situation is unlikely to change in near future.

Barring 2W taxi, regulatory framework for other modes of shared mobility is well-defined and with inherent tailwinds in the market it makes possible for shared mobility to be a way of road transportation in the future.

2W rental and taxis is a relatively small market valued at US$ 0.15B in FY19 but has grown rapidly in the last 3 years at 98% CAGR; ~70% market constituted by bike taxis with Rapido and Ola holding ~40% of the market.

Praxis Value Delivered 
  • Successfully provided the client with deep, comprehensive company profile study, the study of market attractiveness and view of the customer, product benchmarking, estimates of revenue & EBITDA growth, and scope for shared mobility service
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