Everyone knows how price sensitive a market is in India. I just realised how competitive it is.
I recently visited Hyderabad for a day and has to visit multiple places. I thought renting a car would be cheaper considering we needed it constantly with us for the whole day rather than taking multiple cabs and for the added flexibility. However to my surprise hiring a cab with a driver for a whole day was cheaper than renting a car for a day.
This is just a simple example of how the massive population comes to push the prices so low and competitive which makes some business models redundant altogether. The car rental company Savari.com turned out to be cheapest giving a cab for 2700Rs (all inclusive of fuel charges as well) while the cheapest car rental was 3300Rs which doesn't include the fuel.
Creating something in India is extremely difficult given the price sensitive market, competition will be tough. However one thing is clear that the consumer will benefit from this competition.
Comments