India Rental Two Wheeler Market, India Rental Two Wheeler Industry: Ken Research

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How is the India Rental Two Wheeler Market Positioned?

The concept of two wheeler rental is not new in India. Tourist destinations like Leh & Ladakh, Kerala and Goa are full of two wheeler renting vendors offering affordable bikes to tourists for leisureIt is also solving the major problem of last mile connectivity and micro mobility in metro cities and semi urban cities where hardly any public transportation is seen. . Increase in road-trip tourism tops the list of major drivers for the increase in bike rental market size followed by traffic jams and congested locations in metro cities. In addition, rise in the fare by cab aggregators and taxi availability is also becoming one of the biggest drivers of the industry as individuals prefer to opt for an affordable transpiration for their intra city commute. Undoubtedly, the concept of two wheeler renting is booming in the country. With the quest to make bike renting quicker and hassle free process, several startups and vendors are working on their unique business models. Interesting startups and their unique offerings are building up a successful bike rental market in India. The market has attained speedy growth over the period of last 4 years from FY’2017 to FY’2020. Major companies like Bounce, Vogo, Royal Brothers, Onn Bikes, Yulu Bikes, etc. have entered the entered the market in last 5-6 years and since then the market has evolved drastically. It is growing in a two way process and yet to explore huge potential. Increase in internet penetration, smartphone and use of applications has enabled easy booking options for riders and renters.

Apart from offering high convenience to renters, it is also providing the vendors with growth opportunities by taking bookings through bike renting apps developed by startup entrepreneurs. Such apps complement the existing business models of bike vendors by giving them a platform where they can manage their fleet and track bookings.

India Rental Two Wheeler Market Segmentation, FY ’2020

India Rental Two Wheeler Market is at the Growth Stage, with organized players increasing their market penetration. The overall market in terms of fleets size increased from ~  in FY’2017 to ~ in FY’2020, growing at a double digit positive CAGR during the period.

By Market Structure

The market has continued to be dominated by the organized sector with a massive share of ~% in terms of GTV during the FY’2020. Startups have a higher presence, large fleet base and offer urban commute solutions to the individuals.

By Owned & Leased Fleet (Organized Market)

Most of the players and startups focus on an asset heavy model rather than a leased model. This helps them in having the complete control over the quality and service. Owned fleets contributed to ~% share in the organized market for FY’2020. Big players such as Bounce and Yulu own their fleets instead of working on an aggregator model.

By Major Cities

Majority of the demand for rental two wheelers generated from the southern cities in India such as Bengaluru and Hyderabad. One of the major reasons behind this is that majority of the start ups are based in these cities. Moreover, workforce migration to these cities, heavy traffic congestions have also led to the higher demand.

By Type of Two Wheeler

India rental two wheeler markets is dominated by scooters during FY’2020. This is because gearless scooters are trending in the country, among both male and female population. It is a cheaper and convenient as compared to bikes. Moreover scooters are more prevalent in tourist destinations such as Goa and Pondicherry.

india-rental-two-wheeler-market

By Purpose (Commuting and Leisure)

Workplace commuting is the main reason behind renting a two wheeler in India. Previously rental solutions majorly served leisure purpose and only focused upon tourist destinations but with the entrance of companies such as Bounce and Vogo, the situation has completely changed. These players majorly focus upon Point A to Point B commute and are comparatively cheaper.

By Packages Offered

Daily and hourly packages are the most sought after plan for rental services. Owing to Covid pandemic, more players are focusing upon long term rental plans as the customers would not only feel safer but also secure about having immediate access to the outside world whenever they wanted. Moreover, B2B tie-ups generally focus upon having a monthly contract.

By Booking Channel

It has been observed that presently, bookings through online apps and websites dominate the market holding a share of ~% in the rental market. Bookings in the unorganized market (tourist destinations) are mostly done via physical stores instead of online app or booking via call option.

Competition Scenario in India Rental Two Wheeler Market

India rental two wheelers market competition structure was observed to be highly fragmented with the presence of ~ 15,000 unorganized players. Although, organized players such as Bounce, Vogo, Drivezy, Onn Bikes, Yulu Bikes, Royal Brothers, and others contribute a significant share in the overall market. Pricing, models & packages offered, type of vehicles, areas of operations, vehicle & service quality, investor/client tie-ups, value added services offered, number of pick up and drop points are some of the critical parameters on the basis of which companies compete in the organized segment.

India Rental Two Wheeler Market Future Outlook and Projections

Rental two wheeler market is expected to recover from the Covid-19 pandemic and witness growth by mid of 2021. India’s young population and emerging entrepreneurial culture is all set to drive the rental industry with more investors coming forward. Corporate Companies are expected to tie up with 2W rental companies due to the surge in demand, post pandemic. In addition, more focus would be given to solving the urban commute challenges. EVs are likely to hold a relevant share in the total rental fleets in the next 5 years. Leading players are expected to launch their operations in the major Tier 1 & Tier 2 cities.

Key Segments Covered:-

By Market Structure (in Terms of Fleets and GTV)

Organized Market

Unorganized Market

By Type of Organized Market Fleets

Owned Fleets

Leased Fleets

By Major Cities (in terms of Fleets)

Bangalore

Goa

Mumbai

Pune

Jaipur

Delhi NCR

Hyderabad

By Type of Two Wheelers (in terms of Fleets)

Scooters

Motorcycles

E-Bikes

By Type of Bikes

Commuter

Sports

High End Bike

By Purpose (in terms of B2C Bookings)

Commuting

Leisure

By Booking Package (in terms of B2C Bookings)

Hourly

Daily

Weekly

Monthly

By Booking Channel (in terms of B2C Bookings)

Online App/Website

Physical Store

Booking via Call

By Usage (in terms of B2C Bookings)

Intracity Bookings

Intercity Bookings

Companies Covered:-

Bounce

VOGO Rentals

Drivezy

Yulu Bikes

ONN Bikes

RenTrip

Royal Brothers

ZopRent

Boongg

ZipHop

Wheelify

eBikeGo

RidoBiko

Bykemania

Mobycy

GoBikes

Faebikes

Key Target Audience:-

Rental Two Wheeler Players

Two Wheeler OEMs

Consultancy Companies

Industry Associations

Regulatory Bodies

Time Period Captured in the Report:-

Historical Period – 2017-2020

Forecast Period – 2020-2025

For More Information on the research report, refer to below link:

India Rental Two Wheeler Market

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Contact Us:-
Ken Research
Ankur Gupta, Head Marketing & Communications
Ankur@kenresearch.com
+91-9015378249

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