Wednesday, June 19, 2024

Home » OOH News » Meru Cabs to expand into 20 cities in next 18 months

Meru Cabs to expand into 20 cities in next 18 months

By BS Reporter , Business Standard, Pune - March 06, 2014

To invest Rs 270 cr in expansion; targets to increase its car fleet to 100,000 in 25 cities by 2025

Mumbai-based radio taxi company Meru Cabs is planning to expand its presence across India.  To start with Meru will be present in 20 cities in the next 18 months. This expansion will include cities like Chennai, Chandigarh Kolkata, Lucknow and Kanpur.

"We will invest another Rs  270 crore for the business expansion which includes business process, buying new cars, brand building and exploring new markets. By 2025, Meru is planning to increase its car fleet up to 100,000 cars in 25 cities across India. The market is growing at compound annual growth rate (CAGR) of  15 per cent,” said Siddhartha Pahwa, group CEO, Genie and Meru Cabs.

As part of this expansion Meru today launched  its new cab service Genie Cabs in Pune after Hyderabad and Bangalore. Meru will add 2,000 cabs in Chennai, 2,500 in Kolkata, and 300 in Chandigarh.

"Genie Cabs will mainley cater to an economy transportation solution in Pune.  We have received good response in Bangalore and Hyderabad.  It will provide point- to -point service to its customers within the city at a minimum fare of Rs  100 for the first 6 km. It has a new fleet of hatchback cars like Toyota Liva, Maruti Ritz, Tata Indica Quadrijet and Ford Figo,” said Pahwa.

The company has registered consumer revenue of Rs  450 crore in the financial year 2013-14. The total number of cars in the organised car rental market of India is 100,000, while the total market is of 16 lakh vehicles. Meru owns and operates around 7,000 cabs across India. "The biggest challenge for us is to train drivers and retain them in the service. We are different form the other players when it comes to quality service especially the drivers,” Pahwa added.

You May Also Like

Have You Say