Covid-19 second wave may stall mobility sector's recovery, says RedSeer

The recovery is likely to go on a downward trajectory with a drop of 30-40% as many states like Maharashtra, Delhi and Karnataka, among other states, go into lockdown, says the consulting firm

The mobility space became ‘essential’ over the years, with the public convenience that it ushered in. However, the sector saw a huge dip after the outbreak as the larger base of customers started working from home.
 
The ecosystem witnessed an overall change in consumer behaviour. Mobility had recovered 63 per cent compared to the pre-Covid days, with 71 million rides in January 2021, according to RedSeer Consulting.
 
However, with the surging Covid-19 wave in the country, the recovery is likely to go on a downward trajectory with a drop of 30-40 per cent in the coming months as many states like Maharashtra, Delhi and Karnataka among other states go into lockdown, said RedSeer.
 
From January 2020 to March 2021, mobility recovered 69 per cent with an overall of 78 million rides. This has been a gradual increase but is inevitably still lower compared to pre-Covid days. Autos recovered the highest clocking 25 million rides. However, it has still not recovered completely as compared to the pre-Covid days. The trend continues as it poses lower risks of contracting the virus.
 
Companies such as Ola, Uber and Rapido are some of the top mobility players in the country.
 
Cabs continue to dominate the market while autos gained sizeable market share, according to RedSeer.
 
After more than 9 months of lockdown, many offices resumed at 50 per cent capacity leading to high growth in the category. As the second wave of pandemic struck, March 2021, again witnessed a decline in the number of rides.
 
Auto rickshaw has been the highest growth category and gained significant market share in the sector. This is because drivers shifted to online platforms seeking more demand.
 
However, growth in the bike-taxis segment has been slower than others as the scare of the pandemic hit again.
 
RedSeer said cabs continue to dominate the market with 40 million rides in March 2021. While the sector saw a gradual recovery, with the hit of the second wave, mobility will continue to see a decline in the coming months.