Following in the footsteps of auto ancillary companies and OEM players, now the car-rental companies are in an expansion mode. If the reports doing the rounds in the market place are to be believed, the market leader in rental-cab service provider segment, with almost 50 % of the market share, Meru Cabs is now mulling to expand its footprints overseas beginning next year.
Mr. Rajesh Puri, CEO of Meru Cabs was quoted as saying that the demand for Meru Cabs is on the higher side in the Indian market. Right now the company has accumulated not less than 50 percent of the total market share in the domestic arena. Henceforth, the company will now be actively looking to expand its horizons to overseas markets. Without naming the countries, he further went on to say that the company will be starting its radio cab services in at least 2 countries in the Asian continent by next year.
Meru has been mulling to invest a total sum of Rs 200 crores for purchasing and deploying a fleet of additional 2,500 cabs by the end of this year. To sustain this level of up gradation, Meru is expected to go on a recruitment drive for an equal numbers of drivers for its additional cars by the end of 2011. This is in lieu of the growing demand.
At present the fleet size that Meru Cabs operates numbers to 5,000 cars and the company is about to add another 2,500 cars by the end of this year in order to meet the supply side of the equation, Mr. Puri said.