Taxiforsure, an online taxi service provider has confirmed raising its first formal & major institutional funding post its seed funding. Accel Partners, Helion Venture Partners (HVP) and Blume Ventures were the firms that participated in this round. Although the exact amount of funding has not been revealed, TaxiForSure has said that they have raised Rs.23 crore ($4 million) till now and that this funding round amounted to most of the total funding.
Taxiforsure is a taxi aggregator. Launched by Aprameya Radhakrishna & Raghunandan G, both IIM-Ahmedabad graduates two years ago, the company operates on a fairly common business model of making taxis available for passengers. Companies similar to Taxiforsure include Olacabs, Savaari, EasyCabs, Taxiguide, etc. Companies like EasyCabs & Olacabs primarily concentrate on point-to-point trips. In other words, these cabs are essentially just like the black & yellow cabs that ferry people from where they can be approached. These are usually small trips. Hence this is a large volume game with fairly low revenue per trip.
On the other hand companies like Savaari, Meru Cabs etc., strive to offer outstation trips and multiple-hours packages besides also working on half-day and full-day packages. While each of the segments involves transporting people, the volume, the trip-duration & the logistics are very different. In the near past we have even seen the emergence of self-driven taxi service with high end automation.
Despite operating in a fairly competitive environment, Taxiforsure is confident of its business plan. In fact, the company claims to have reached operational profitability in Bangalore & ironically is active in only one another region; Delhi.
Owing to internet, smartphones & GPS capability, many taxi service aggregators have come-up. These can now effectively ensure a taxi is made available to an enquiring customer based on his location. Gone are the days, when taxi companies had to park their taxis near airports in hopes of grabbing a long-trip customer. Launched just 2 years ago, Taxiforsure claims to have accelerated at 40% on a monthly basis & has an expansion plan to enter major metros like Mumbai, Chennai, Pune, Jaipur, etc. With growing competition, do you think it will stand a fighting chance?