In 2023, MakeMyTrip announced that it had acquired a majority stake in the Indian intercity car rental company Savaari.
MakeMyTrip called the Indian Intercity market for car rentals a fragmented market with low online penetration. The company foresees an opportunity to transform this space with technology and offer a better value proposition, both for suppliers as well as the customers.
“Currently, intercity cabs is a highly unorganized and fragmented market and with road infrastructure improving in the country, it presents a good future growth opportunity. So we have decided to strengthen this line of our business,”
– Rajesh Magow, co-founder, group CEO and director of MakeMyTrip.
Savaari, as Magow said, would be a small ticket investment within the $10 million range.
Magow called it “logical investment,” and said Savaari has been an existing supplier on the platform and it will help MakeMyTrip to accelerate its plans on the intercity offering side.
Online Travel Agencies (OTAs) such as Expedia, Booking.com, Trivago and more, regularly buy up car rental businesses. This is because it allows them to easily add new integrated revenue streams to their business.
We also see that larger car rental companies like Avis, Hertz, or transportation platforms such as Uber are the ones acquiring smaller car rental marketplaces. Private equity firms also play a role in acquiring these businesses, especially if they see potential for growth or restructuring.
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