Car ownership is soon becoming a thing of the past as millennials opt for shared vehicles, saving them from the insurance, EMIs and parking charges that come as part of owning a car. Instead, taxi operators like Uber and Ola are gaining ground in metros and Tier 2 & 3 cities alike.
Anand Mahindra, CEO of Mahindra and Mahindra, told TOI that electric vehicles will be the preferred choice for ride aggregators, as demand for petrol and diesel cars starts tapering off. He even mentioned the fact that his daughter shows no insistence to own a vehicle and instead prefers shared transport for commuting.
The car-hailing business is what he is aiming to target but with a different approach. Instead of the usual cash burn, Mahindra will focus on niche markets and audiences to slowly gain traction and avoid losing money. For instance, Anand Mahindra wants to open up a Mahindra Thar fleet for hire in Goa. This is expected to have decent demand and will be a good start for the carmaker in this industry.
Apart from that, Mahindra is also looking to invest in smaller companies that have a unique approach to the business. Competitors are also entering the ride-hailing industry as they see big potential. Ford has picked up a substantial stake in ZoomCar and Hero Motocorp is also planning to leverage two-wheelers as a successful shared transport mode.
Mahindra believes that electric taxis are the future and with sales of autonomous vehicles picking up, it is clear that people will not want to drive in the coming times. The cab industry is not just a mere product, it is a solution to the next-gen transportation industry.