startup idea help

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Since big players like uber and ola are not expanding much in small towns, do you think starting a similar service in smaller towns can be hit? what could be the major challenges?

  • Akshay Halasangi
    I can only think of people with whom you will sell your service. Apart from that you should be fine. However the market reach and usablity of the product will be lesser when compared.
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Uber and Ola are not aggresive in tier 2 and tier 3 towns because they don’t forsee massive demand for such service in the near future.

There is some threshold demand requirement for getting the break even of that service. Although these players are also incurring losses in metros also but that is just their marketing strategy.

These players would be the first one to infiltrate in smaller cities as demand for such service will increase.

Now why demand is less in smaller cities is a different discussion but i feel travelling long distances is not a thing in small cities. Most people use two wheelers to travel across crowded markets as they lack infrastructure and wide roads. Corporate working class who are more tech savvy and have high disposable income are not in majority in small cities.

But things are changing fast and who knows when such a demand breaches its threshold and invites startups to solve their commutation probelm

On the other inter city commutation is still a pain point and can has to be solved appropriately. Ola is giving this feature but rates are not competitive with local players in this segment. This area sufficient demand in both metros as well as small cities. I believe a lot many startups will pitch in to solven this problem in coming times.

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