Everest Fleet Pvt. Ltd.

Date: 23 Sep, 2021

With the process of urbanisation stepping up, there was a huge surge in the demand for cab services in the cities. Everest Fleet Pvt. Ltd started to address the rising demands and soon became the largest fleet management operator in Mumbai. The company offers an industry-leading client experience with a focus on improving employment opportunities through the highest quality of support and service.

About the company:

Everest Fleet Pvt Ltd was founded in October 2016 by Siddharth Ladsariya. It has a fleet of around 1,200+ cars with operations spread across Mumbai, Bengaluru, and Delhi.

The leadership team also includes Siddharth’s wife, Himani who comes from a technology background, while Prihaans Dedhia, Shivang Unadkat, and Monil Sheth come with strong operations backgrounds.

Service Offerings:

  • Everest is tackling the major issues of cab aggregators in managing fleet & drivers by becoming the largest fleet management service provider to them.
  • They are also taking care of driver training as well as management.
  • While Everest started by operating cars in 2-shifts, post-covid it is operating in a single shift.
  • Currently, the Company has its presence in Mumbai, Bangalore, and Delhi with plans for expansion to other cities over the next 12 months.

Industry Landscape:

  • The market size of the cab-hailing segment in India was US$ 2.4 Bn in CY2018 and has the potential to grow by 25% CAGR by 2022 as per a report by Redseer Consulting.
  • However due to supply-side challenges the growth rate could be down to 20% CAGR.
  • Uber and Ola have already addressed the demand side but there is a huge supply challenge in terms of the availability of cars (there is still a shortfall of 35,000 cars in Mumbai itself)

Key challenges in Cab-hailing Industry:

  • For Individual Car Owners / Fleet Owners

- Difficult to manage drivers

- High maintenance cost and difficulty to manage car upkeep

- Less than 40% asset utilisation

- Unable to scale

- High Attrition rate of drivers

  • For Drivers

- Higher car downtime

- Irregular and non-timely payouts coupled with fixed EMI payments

- Minimal guidance and training by car owners

-One shift operations result in low asset utilization.

How is Everest trying to address some of these challenges?

• Efficient utilization of cars and drivers;

• Bi-weekly payouts to Drivers so that they can manage their expenses;

• Has prepared a detailed training program which each driver has to go through before becoming eligible for a customer-facing role;

• Provides clean cars and maintains them well with regular audit checks.

The Covid-19 pandemic; Fleets to the rescue:

  • When the pandemic hit, Everest Fleet started receiving requests for transport services for emergency purposes, such as banking and hospital operations.
  • The Company quickly started the emergency transport service for essential workers and also promoted it through the WhatsApp broadcasts to family and friends so that they could assist as many people as possible. Everest Fleet received 1,200 requests within a month. People who had friends or relatives in hospitals also reached out for help.
  • In the first Covid wave, there were several restrictions but during the devastating second wave, implementing their services was easier as the government recognized the importance of essential transport services.
  • The deadly second wave also affected Everest Fleet’s employees but they took all the precautionary measures and continued their support while ensuring a great track record.

Conclusion:

Considering the present supply and demand dynamics in the cab-hailing segment, there resides a huge market opportunity when it comes to fleet management operators addressing the supply side challenges of cars and driver management in this industry. Everest Fleet Pvt. Ltd. as one of the largest fleet management service providers is playing a key role in addressing these crucial pain points and setting the benchmark for quality, innovation, support, and sustainability in the fleet management industry.

The above report has been prepared by Rockstud Capital LLP (“Investment Manager”) for informational purposes only and is subject to change without notice. The delivery of the report does not imply that the information contained herein is correct as of any time subsequent to the date specified in the contents of the Information. The financials in the above report are intentionally not mentioned due to confidentiality reasons.

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Disclaimer — The article is made for informational purposes only and should not be regarded as an official opinion of any kind or a recommendation. It does not constitute an offer, solicitation or any invitation to public in general to invest in the stocks discussed. This article is confidential and privileged and is directed to and for the use of the addressee only. The recipient, if not the addressee, should not use this material if erroneously received, and access and use of this material in any manner by anyone other than the addressee is unauthorized. It shall not be photocopied, reproduced or distributed to others at any time. While reasonable endeavors have been made to present reliable data in the article, Rockstud Capital LLP does not guarantee the accuracy or completeness of the data in the article. Prospective readers are cautioned that any forward-looking statements are not predictions and may be subject to change without notice. No part of this material may be duplicated in any form and/or redistributed without Rockstud Capital LLP’s prior written consent.

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