Ola, Uber, Other Cab Hailing Apps May Suffer Severe COVID Dent; Personal Car Sales May Benefit

The deadly virus, which is resetting consumer behaviour towards the usage and adoption of different services and pushing businesses to revise their growth strategies, might also challenge cab-booking businesses to address hygiene concerns on a war footing.

“It is a big challenge for them to revive growth post-Covid as they know the demand may not come for a very long time. There could be a dent on business for six-nine months. There are also issues on the drivers’ end who are sitting idle at home due to lack of demand,” Sanchit Vir Gogia, Founder and CEO of consultancy firm Greyhound Research told Financial Express Online.

However, there is a large amount of scepticism among people who are ready to shift or go back to their personal vehicles to avoid chances of virus contraction. “Cars sales will happen in a very big way for those who are upwardly mobile and have money. This would definitely mean a reduction in the business of Ola and Uber. They might focus on enterprise side such as partnering with e-commerce, food delivery firms because that is where foreseeable money is, otherwise they will lose drivers,” said Gogia. Uber, for instance, had partnered with Flipkart, BigBasket and Spencer’s Retail to deliver essential goods and groceries.

[Financial Express]


Analyst:

Sanchit Vir Gogia: Sanchit is the Chief Analyst, Founder & CEO of Greyhound Research, a Global, Award-Winning, Technology & Innovation Research & Advisory firm. To read more about him, click here.

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