Mobility Firms are relying on new use cases, such as visit to pharmacies and supermarkets, to stage a rebound as uncertainty happen to arise from the new corona virus strain. This could delay opening of spaces and the return of urban commuting in 2021.
They might see a recovery from the first quarter of 2021 but it will be a long, bumpy and a roller -coaster ride for them with many fraught challenges.
Cab – giants like Ola and Uber, the core mobility business is likely to take long for recovery as compared to two – wheeler startups. There is a strong chance that Ola and Uber will challenge the rules if consultative changes are not initiated, said industry experts.
The new guidelines will possible be a part of courtroom battle, much like the first set of regulations. On demand transportation technology aggregator rules were challenged by both Ola and Uber in the Karnataka high court right after it was introduced by state government. This could dampen the recovery of ride hailing companies who also have relied on segments such as autos, rentals and other non core offerings to bring in revenues.
A December 2020 Google report showed that mobility trends for places such as supermarkets, pharmacies, food markets and specialty stores saw 9% increase while travel to other residences were up by 10%. In contrast, travel to work which contributed to a majority of business to mobility companies fell by 21% whiles visits to restaurants, cinemas and cafes and shopping centres dropped by 27%.
Let’s hope for the best!!
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