CarDekho derives 75% revenues from New Car Business

cardekho-new-business-revenue New car business accounts for 75% of the CarDekho’s revenues currently. There are three revenue streams in this segment: 1> advertisements by OEMs; 2> Lead generation for dealers/OEMs – CarDekho generates leads for ~2,000 partner new-car dealers; and 3> technology solutions including lead management systems for OEMs/dealers, virtual reality and sales & marketing solutions. CarDekho has strong OEM relationships with Renault, Ford, Nissan & Datsun, Tata Motors, Honda and M&M for a portfolio of solutions.

The revenue from the used car business is (more…)

StayZilla Vs Zo Rooms – Hotels & Alternative Stay Aggregators

StayZillaStayzilla is an aggregator of hotels and alternative accommodation on the Mobile App & Web. The company’s focus is to build supply, which it believes is the most difficult issue to resolve. It believes that there is enough pent-up demand to fill in any supply that will come online. Traffic on the platform also depends more on having inventory across a wider geographical coverage (number of towns/cities) rather than deeper coverage (more hotels within a geographical area).

Importance of supply can be seen from the fact that the company believes that the property owners are customers rather than those booking the hotel. Further, Stayzilla doesn’t believe that hotel owners / operators need technology for booking as is (more…)

MakeMyTrip Air Ticketing Strengthens, Structural Growth Story Intact

MakeMyTripMakeMyTrip [MMYT] asserts its focus on growing its Hotels & Packages (H&P) business by spearheading online shift & mobile platform adoption. It is cementing leadership here. Robust air traffic driven by discounting of airfares surprised positively for MMYT’s Air business.

MakeMyTrip gained market share in domestic air ticketing business increasing it from about a steady 12% for the last several quarters to around 13%+ in Sep-14 quarter. To provide context, MMYT delivered a solid Sep-14 quarter with air ticketing revenues (less service cost) of US$18.4 million in revenues i.e., 20% Y/Y (and 10.7% Q/Q) revenue growth. Management suggests that revenue per booking is low primarily because of discounted ticket prices. But there is little correlation between revenue per transaction and air ticketing margins as margins in (more…)

Taxi Booking – New Battle Ground for Chinese Internet Giants

Online TaxiBaidu and car rental company Yidao Yongche yesterday announced that the two companies will jointly launch a business car rental service “Baidu VIP Car” The Chauffeur driven service will be supported by Baidu Map, with the first app to support the service soon to be released on the Android platform. Founded in 2010, Yidao is a leading car rental company in China. Its service currently covers 74 cities in China and also 3 cities in the US.

With China’s three largest internet platforms all having launched ventures within the car rental market, the space seems to have become a new (more…)

MakeMyTrip – Business Verticals Review and Outlook

MakeMyTrip Business Verticals MakeMyTrip (MMT) offers a comprehensive suite of travel and travel-related services and products. The company’s two primary lines of business are air ticketing and hotels & packages. Additionally, it provides rail and bus tickets, car hire, and ancillary travel services, e.g. travel insurance and visa processing.

Air Ticketing Business
The air ticketing business is primarily targeted at domestic travel within India and international travel to/from India. Over FY10-F13, MMT’s domestic air travel transactions have increased at 29% CAGR to 3.4m, whereas international travel transactions have risen at a 39% CAGR to 0.35m. MMT has real-time access to inventory of all major (full-service and LCC) domestic airlines (more…)