About the project

CUTS International is undertaking an analysis of relevant market and competition assessment of ride-sharing industry. Sharing economy has evolved rapidly in the last few years. It enables usage of underutilised resources through monetary payment. Co-working, house renting, ride-sharing are examples of shared economy. Ride-sharing or taxi aggregator model connects drivers with riders through internet. This is a new addition to traditional modes of transports like bus, auto-rickshaws, metro, city taxi etc. Taxi aggregators are faster, hassle free and easily accessible as compared to traditional transports.

Rapid growth of taxi-aggregators has disrupted the transport industry, especially in urban and semi-urban areas. This has spurred market competition in the sector and consequently, consumers have benefitted immensely through affordable and easily accessible rides. However, the rapid innovation-led disruption caused by taxi-aggregators has stimulated concerns with incumbent players regarding unfair competition.

Having said this, in such a rapidly evolving market landscape, ascertaining issues regarding unfair competition can become an increasingly challenging task and inherently depends upon the nature of market competition in a specific geography. To that end, it is crucial to first get a detailed understanding about the nature and level of competition in the ride-sharing market. This project offers to conduct a detailed determination of the relevant product and relevant geographic market and subsequently aims at ascertaining the level of competition in the same. In-depth understanding of changing dynamics of competition in the transport sector will help policy makers to understand consumer’s choice in a greater manner. It may also lead to formulation of better regulations for new and traditional modes of transport.