In the age of Ola and Uber, loss making Mega Cabs plans to expand

Taxi service provider Mega Cabs is looking to invest Rs 500 crore in the next three years to expand its services to 20 cities, betting big on airports, railway stations and other public points of transit, according to PTI.

The company, which ran into huge losses due to entry of aggregators like Ola and Uber, plans to revive market share with aggressive investment in technology and taking fleet size to 8,000 vehicles.

“We feel by 2020 we will be in 20 cities with about 8,000 vehicles,” Mega Cabs Chairman Kunal Lalani told PTI.

The company is present in six cities, including Delhi and Bengaluru, with a fleet size of about 2,500 cars.

When asked about investments, Lalani said: “Investment will not only be in vehicles but also in technology and over the next three years we would look at overall investment of about Rs 500 crore.”

On target customers and business model, he said airports and railway stations are one of the biggest points of the business.

 

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