Studying this company currently.
What I like:
- Employee transportation is an area where corporates struggle. There are 100s of players at every office location, but they fail to meet a lot of daily base goals like cabs plying on time
- Like Peter Lynch said, never ignore what’s going on near you. I dont come back home without spotting a WTi cab in Delhi NCR
- Their airport counter business has already reached 14cr in a few years. That’s B2C business, although with a slightly higher operational cost and fierce competition
What I don’t like:
- Competition. Having a company like this is every budding driver’s big dream. I have seen a few going on to start a small 2/3 cab service of their own. And since most big corporates outsource employee transportation, they don’t care who their providers are
- Their operational costs have a high rentals which they need to pay for using cabs. I understand this is an asset light way, but it certainly eats into margins
- Talking of margins, the company is at their peak margins. I dont really like companies who can’t expand their margins in 3-5 year horizon
Also, I dont really understand this Dubai move. Will continue to track and see how this goes, but to me this looks like a very naive, shady or gaudy move.
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