In a groundbreaking move that promises to redefine the Indian travel landscape, MakeMyTrip has embarked on a transformative journey by acquiring a majority stake in Savaari Car Rentals, a frontrunner in the Car Rental domain that boasts a presence in over 2000 cities across India. This acquisition is part of MakeMyTrip’s ambitious strategy to harness the Intercity Car Rental market’s burgeoning potential, a sector valued at $6-$8 billion, with a significant potential of $3 billion shift towards online services.
As travel within India is about to experience a significant increase, the partnership between MakeMyTrip and Savaari is poised to take advantage of this exciting period of exploration momentum is further amplified by the government’s initiatives, which resonate with the country’s growing enthusiasm for discovering both the mainstream and hidden gems. The Ministry of Tourism’s data, showing a 20.7% annual increase in domestic travel, reaching 1.7 billion in 2022, with a projection of soaring to 4 billion by 2027, underscores the timeliness and strategic acumen of this partnership.
Unifying Visions: Tapping into a Fragmented Market
Kicking off with a unified vision and an eye on the vast market potential, alongside considerations of various external dynamics, this collaboration is poised to catalyze a revolution in the largely untapped intercity market. This strategic leap is the dawn of a new era in the industry, positioning MakeMyTrip at the helm of a transformative wave. Over the past 5-7 years, MakeMyTrip has meticulously crafted a marketplace for Intercity travel, weaving together diverse players, including Savaari, to forge a robust Intercity business framework.
Savaari’s unparalleled focus on crafting a premier Car Rental service for Intercity road trips brings a treasure trove of expertise to the table. Its commendable track record of profitability, exponential growth, and stellar customer satisfaction metrics render it an invaluable asset within MakeMyTrip’s portfolio. The synergy of Savaari’s cutting-edge technology, competitive pricing models, and custom road trip offerings with MakeMyTrip’s platform is set to redefine the Intercity travel experience, offering customers an unmatched journey.
Gaurav Aggarwal, Founder and CEO of Savaari Car Rentals, encapsulates the essence of this strategic union: “This acquisition marks a pivotal moment in the $3 billion-plus, yet largely unorganized, intercity market. We are now looking to transform this space by leveraging technology as well as deeper consumer understanding from MakeMyTrip. The timing of the acquisition couldn’t be better, as it coincides with the improved road infrastructure in the country and a wider acceptance among travellers to book intercity cab services online.”
Through innovation, comprehensive solutions, and a relentless pursuit of excellence in service delivery, MakeMyTrip and Savaari are setting the stage to lead the Indian Car Rental Industry into a future characterized by organization, customer focus, and unparalleled travel experiences.
Revolutionizing intercity travel – MakeMyTrip and Savaari’s strategic alliance to dominate the car rental market
MakeMyTrip’s acquisition of Savaari Car Rentals stands as a landmark development, reshaping the landscape of India’s intercity Car Rental market, a sector brimming with untapped potential and ripe for innovation. This partnership vividly illustrates how complementary strengths can create a formidable force in the travel industry. MakeMyTrip, with its vast travel network, and Savaari, renowned for its bespoke technological solutions and customer-centric approach, are joining hands to bring about a revolutionary change.
This alliance is set to redefine the way customers experience travel, making operations more fluid while unlocking the vast opportunities within the Indian Car Rental landscape. Savaari will retain its unique brand identity under the expansive umbrella of MakeMyTrip, ensuring that its legacy of excellence continues to thrive. This merger is a pledge to enrich the journey of exploring India’s diverse terrains and destinations, fueled by a shared vision and commitment to innovation.
Maintaining the essence of the partnership, Rajesh Magow, Co-founder and Group CEO of MakeMyTrip, encapsulates the transformative intent of this acquisition: “The inter-city cab service remains largely offline, with low online penetration, fragmented supply, and a lack of standardization in service. We have encountered similar issues in intercity private bus transport where we now have a leadership position through redBus. With this majority stake in Savaari, we seek to extend that leadership to adjacent segments in ground transport,” Magow explains. He continues, highlighting the synergies and future direction, “The founding members and the leadership of Savaari have done an incredible job over the past few years in becoming the premier player in this category. Our endeavor now will be to further boost growth with our technology and consumer insights expertise. Prakash Sangam, CEO of redBus, will lead this initiative from the MakeMyTrip group’s perspective and work closely with the leadership team of Savaari to scale this business to new heights.”
Strengthening moats and commitment to excellence
Savaari, a trailblazer in the Car Rental industry, has revolutionized the sector through its innovative approach, offering value-added services, tailor-made road trip packages, and affordable one-way drop services across an expansive network of over 2000 cities. Renowned for its commitment to affordability without compromising quality, Savaari has carved a niche for itself, becoming a hallmark of excellence and affordability in travel. This dedication is mirrored in its exceptional Net Promoter (NPS) and Customer Satisfaction (C-SAT) scores, a testament to its unwavering focus on customer satisfaction, as vividly reflected across social media and review platforms.
Savaari stands to benefit immensely from MakeMyTrip’s extensive network, unlocking new avenues in the promising yet underexplored Indian Car Rental market. This partnership promises to broaden Savaari’s consumer base and establish it as the preeminent, customer-first Car Rental brand in India.
Beyond reconfiguring the Car Rental market’s framework, the MakeMyTrip and Savaari collaboration is imbued with a shared vision of enabling travellers to discover India’s splendor through the unique lens of road travel. Recognizing the intrinsic value of India’s diverse landscapes and the unparalleled experiences they offer, accessible predominantly via road, this collaboration is set to make these ventures more tangible for a vast array of travellers. By leveraging MakeMyTrip’s expansive customer reach alongside Savaari’s expertise in curating unforgettable road trips, this partnership extends beyond mere logistics, fostering a profound engagement with India’s cultural mosaic and scenic diversity.
The MakeMyTrip and Savaari partnership, characterized by the strategic acquisition of Savaari, is poised to be a transformative force in the travel industry. Central to this alliance is a commitment to harnessing and amplifying the collective expertise of both teams, a move that underscores the customer-centric ethos driving this collaboration. In alignment with its vision for growth and innovation, Savaari is actively expanding its team across key verticals in the Growth Marketing, Tech, and Product divisions.
To further bolster its operational strength, there will be a strategic transfer of key resources from MakeMyTrip to Savaari. This exchange of expertise is designed to enhance Savaari’s capabilities and drive innovation within its operations.
Elevating Travel Experiences Through Technology and AI Integration
This strategic alliance is poised to redefine the travel landscape by unveiling a suite of enhanced services tailored to meet the varied needs of its customers. This collaboration is set to introduce the option for customers to purchase additional kilometres, adding a level of flexibility for those embarking on longer journeys. The inclusion of assisted pickups and vehicles outfitted with carriers promises a travel experience that is not only seamless but also tailored to the comfort and convenience of the traveller.
Understanding the critical role of last-mile connectivity in enhancing the overall travel experience, Savaari and MakeMyTrip are dedicated to ensuring their services span the full spectrum of traveller needs. With an ambitious plan to double its operational footprint from 2,000 to 4,000 cities within the next six months, the partnership underscores a deep commitment to making its premier services more accessible to a wider audience.
Addressing the underserved niche of domestic leisure travel, this collaboration is set to pioneer Intercity road travel that blends the latest in digital travel content with the personalised touch of trained chauffeurs. Speaking about the development, Samir Kumar, MD & General Partner, Athera Venture Partners, who were early investors in both Savaari and redBus, said “The acquisition of Savaari by MakeMyTrip not only affirms Savaari’s dedication to excellence but also heralds a new era of growth and possibilities. I’ve witnessed MakeMyTrip’s remarkable intercity private bus travel transformation with redBus. This innovation and expertise, I firmly believe, will be replicated in reshaping intercity cab services with Savaari, continuing their trajectory of redefining travel in India.”
With a keen eye on innovation and inclusivity, this collaboration is well on its way to establishing new benchmarks in the travel and hospitality sector.
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