Indian Transporatation Unit Economics
2 min readAug 29, 2021
I was reading blogs on unit economics and found the numbers quite interesting. So decided to share.
TL;DR
Having a bicycle cost around 2.26 INR/km, Scooter costs 4 INR/km (fuel, maintenance, and EMI), and Bus costs around 0.88 INR/km. And that’s why share mobility hurts the economy. It’s really cheap for users.
Data:
- Money in transportation=(20 days * 11 months) * (115 INR/ride * 2 ) * (26.5 million people)= 19 Billion
- Scooter caused mortalities = 31% of overall deaths.
- Micro mobility (less than 5 km) trips = 66%
- Scooters ownership share wrt all vehicles = 81%
Bicycle Unit Economics
- Cost per cycle = 4500 INR
- Life span = 730 days
- Daily depreciation cost per day ~ 4.10 INR
- Assume 3 rides per day hence depreciation cost per ride ~ 1.36 INR
- Gross margin per ride(10 * depreciation cost) = 13.60 INR
- Gross revenue per ride ~6.8 INR
- Avg distance = 3 km
- Gross revenue per ride per km = 2.26 INR/km
- Gross margin per ride(13.6–2.26) = 11.34 INR
- CAC = 200
- Ride to cover CAC(200/8) per customer ~18 rides
Scooter Unit Economics
- Cost to customer for Scooter(Vogo) = 5 INR/km
- Scooter Fuel, maintenance and EMI = 4 INR/km
- Gross Margin = 1 INR/km
- CAC(assume) = 100 INR
- Avg ride(assume) ~ 6 km
- Rides to cover CAC(100/ 6) per customer ~ 16 rides
Bus Unit Economics:
- Cost per Bus = 3MM INR
- Life = 10 year
- Fuel efficiency = 3 KM/litre
- Daily travel(2 trips) = 70 KM
- Driver = 24 K/month, Fuel= 35K, maintenance and depreciation = 30 K = 89 K
- 35 seater bus charges per seat = 63 Rs.
- Revenue per seat = 35 * 63 = 2205 Rs
- Revenue per km = 2205/70 = 31 INR/km
- Revenue per km per seat = 0.88 INR/km/seat
Reference:
