India’s ride-hailing market is poised to hit $6.50 billion in revenue by 2024, driven by platforms like Uber, Ola, and Rapido. While Tier 1 cities inch closer to saturation, Tier 2 and Tier 3 cities present untapped opportunities and dynamic challenges. Here’s a closer look at the trends shaping this sector's future.

Mature Markets: Balancing Growth and Acquisitions

Bengaluru recorded significant new installs, with a peak of 237k in Week 2 (12th-18th Aug), coinciding with a long weekend. Week 4 (26th Aug-1st Sept) saw new installs at 190k, reflecting consistent marketing spends. Delhi NCR saw impressive growth, with new installs surging to 500k in Week 3 (19th-25th Aug), aligning with Rakshabandhan celebrations. By Week 4, installs reached 325k, showing responsiveness to cultural events.

Growth Markets: Balancing Momentum

Pune experienced strong growth, with  an average of 60% users that were from new-to-cab users* during August. Ahmedabad displayed a consistent upward trend, peaking at 67k new installs in Week 3. Over 65% of these new installs were from new-to-cab* users, reflecting strong acquisition potential.

Emerging Markets: The New Frontier

Kochi showcased its potential as a promising market for cab apps, beginning with 26k new installs in Week 2. The city maintained a steady acquisition trend throughout the month, concluding with 20k new installs in Week 4. Impressively, the monthly average new install rate stood at 78%, reflecting strong user engagement and interest. Meanwhile, Bhubaneswar demonstrated consistent progress, achieving 23k new installs in Week 3 before tapering off to 15k in Week 4, likely influenced by weekend patterns. Notably, the city recorded a high proportion of users new-to-cab industry, underlining its untapped potential and growing market demand.

The Road Ahead

The story the data tells is clear. Cities like Bengaluru and Delhi NCR are mature markets that need innovative strategies to keep users engaged. Emerging markets like Pune and Ahmedabad must focus on balancing acquisition and retention. Meanwhile, in growth potential cities like Kochi and Bhubaneswar, aggressive awareness campaigns and loyalty programs will be essential to turn first-time users into loyal customers.

The future of India’s ride-hailing market lies in understanding these unique trends and crafting strategies tailored to each city. The opportunities are immense, but so are the challenges.

• New-to-cab users are defined as new and unique users in the past three months (May, June, July).