Name: Innovative Business Model Of Meru Cabs - Updated In 2025
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<div class="raw-html-embed"><div data-bglz="1" class="et_pb_text_inner"><h2><b>About Meru Cabs</b></h2><p><img decoding="async" class="wp-image-232836 alignnone " src="https://iide-media.blr1.cdn.digitaloceanspaces.com/production/upload-1736872504712-b965c1e365cf4173f541a1cc5d035150.webp" alt="Meru Cabs - Business Model of Meru Cabs" width="502" height="149" data-srcset="https://iide.co/wp-content/w3-webp/uploads/2021/09/image2-61-300x89.pngw3.webp 502w, https://iide.co/wp-content/uploads/2021/09/image2-61-480x142.png 480w" sizes="(min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) 502px, 100vw"></p><p><span style="font-weight: 400;">Meru cabs are the most trusted brand in India for providing cab service to customers as well as corporates. The company provides its services across the top 4 cities of India with a fleet of 5000 taxis.</span></p><p><span style="font-weight: 400;">The company also provides an app through which users can confirm their registration and choose where they want to go using GPS.</span></p><p><span style="font-weight: 400;">Meru Cab also focuses on personal rides through their app named “Meru Outstation”, which provides its services for weekends, business, outings, etc., and covers over 7000+ destinations across 100 cities.</span></p><p><span style="font-weight: 400;">The company also provides its services in a business called ‘Meru-biz’, which provides end-to-end mobility of resources in a structured and reliable tech-driven environment. It provides a smooth, smart, and cost-effective travel system that can be customized as per the organization’s needs or budget. Enabling access to all company rides, costs per individual, and setting up rules and regulations for all these features on one platform.</span></p><p><span style="font-weight: 400;">Meru’s fleet scopes from hatchbacks, sedans, and premium sedans, to SUVs and electric vehicles (EVGO).</span></p><p><span style="font-weight: 400;">Without any further ado, Let’s jump to our prominent part that is the Business Model of Meru Cabs.</span></p><h2><b>Business Model of Meru Cabs</b></h2><p><img decoding="async" class="wp-image-232842 alignnone " src="https://iide-media.blr1.cdn.digitaloceanspaces.com/production/upload-1736872505155-ffcb9751b3633309398de7f42d9312f1.webp" alt="Meru Cabs App-Business model of Meru Cabs" width="226" height="363"></p><p><span style="font-weight: 400;">As you know, Meru Cab owns 12% of the market share as compared to Ola. Ola has 80% of the market share both in the customer and corporate sectors, but it mainly focuses on customers and less on businesses, which creates an advantage for Meru cabs to operate in this section.</span></p><p><span style="font-weight: 400;">So in this business model of Meru Cab, we are going to understand the following points.</span></p><ul><li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">The driver deposits Rs 10,000.</span></li></ul><ul><li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Meru purchases the car and gives it to the driver. The driver is not an employee of Meru</span></li></ul><ul><li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Meru trains the driver on soft skills. The basic qualification for the driver is a minimum of three years of experience on the city roads, with a basic knowledge of reading addresses in English.</span></li></ul><ul><li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">The fuel cost has to be carried out by the driver.</span></li></ul><ul><li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">The maintenance of the car is borne by Meru.</span></li></ul><ul><li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Meru helps their drivers by providing bookings through their call centres.</span></li></ul><ul><li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">The driver is free to take passengers if he doesn’t receive any calls from the call centre.</span></li></ul><ul><li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">The driver is assigned a ride from the call centre by tracking his presence through the GPS navigation system, and hence he can not ignore the call centre’s trip assignment.</span></li></ul><ul><li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">In return, the driver provides Rs. 1000-1200 per day to Meru.</span></li></ul><p><span style="font-weight: 400;">(Be aware that this is a per-day charge rather than a per-call charge, which means that even if the driver does not receive a call from Meru on a given day, he is still required to pay Rs. 650-900 as rent for using the car.)</span></p><ul><li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Whatever the driver earns above these 1000-1200 rupees is his income.</span></li></ul><p><span style="font-weight: 400;">So, this was a brief introduction to the business model of Meru Cabs. Now, let’s quickly move on to the competitor’s comparison table.</span></p><h2><b>OLA VS MERU</b></h2><table><tbody><tr><td><b>MERU</b></td><td><b>OLA</b></td></tr><tr><td><span style="font-weight: 400;">Meru Cabs were founded by Mr Neeraj Gupta.</span></td><td><span style="font-weight: 400;">Ola cabs were founded by Mr Bhavish Aggrawal.</span></td></tr><tr><td><span style="font-weight: 400;">Meru cab has 12% of the market share.</span></td><td><span style="font-weight: 400;">Ola cab has 80% of the market share.</span></td></tr><tr><td><span style="font-weight: 400;">Meru is a company that is more call-centre based as it assigns the specific customer to the driver.</span></td><td><span style="font-weight: 400;">Ola is the company that executes most of its orders through apps as it doesn’t assign specific customers.</span></td></tr><tr><td><span style="font-weight: 400;">Meru operates on a single app providing different services like Meru biz, Meru outstation, etc.</span></td><td><span style="font-weight: 400;">Ola operates through their main app as well as other apps such as Ola Wallet, Ola Food Delivery, and so on.</span></td></tr><tr><td><span style="font-weight: 400;">Meru cabs provide a car to its driver where the driver makes a deposit and then this driver is assigned to carry out the destination given to them.</span></td><td><span style="font-weight: 400;">Ola cabs operate differently in that they don’t own any cars, but they provide a platform for those who are already experienced in this field.</span></td></tr><tr><td><span style="font-weight: 400;">Meru Cab mainly focuses on the B2B business as it’s their main source of revenue, and it’s mainly corporate-centric as they provide a different array of services to corporate businesses.</span></td><td><span style="font-weight: 400;">Ola cab is customer-centric as it provides most of its services to customers who can try to select different types of vehicles as per their needs.</span></td></tr><tr><td><p><span style="font-weight: 400;">Meru cabs have started taking registration through its app, but still, it takes most of the registration from the call centre.</span></p></td><td><span style="font-weight: 400;">Ola cabs operate and provide their bookings through the app only.</span></td></tr></tbody></table><p><span style="font-weight: 400;">In the next segment of the business model of Meru Cabs, we have a comprehensive SWOT Analysis of Meru Cabs.</span></p><h2><b>Swot Analysis on Meru Cabs</b></h2><h3><b>Strengths of </b><b>Meru Cabs</b><b> –&nbsp;</b></h3><ul><li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">The first company to establish cab services across the country was</span></li><li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">High awareness as a taxi operator.</span></li><li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Presence across many cities in India.</span></li><li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Meru cab drivers are well trained about safety and security issues as well as well-versed with communication skills.</span></li><li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Meru car was one of the first companies to start metered radio cabs.</span></li></ul><ul><li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Available for 24×7 e-bill service.</span></li><li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">MeruCab still has control over various airports.</span></li><li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Meru cabs are business-friendly as they provide the overall cost of transportation and solutions to reduce the cost as well.</span></li><li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Serves our 2 million customers and is recognized with multiple awards.</span></li><li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Meu has a call centre for services or any emergencies.</span></li><li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Meru has tamper-proof digital cab meters, integrated with a GPS tracker to ensure&nbsp;</span></li><li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Every fare is tracked.</span></li><li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Meru Cab keeps their cabs clean and tidy.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</span></li></ul><h3><b>Weaknesses of </b><b>Meru Cabs</b></h3><ul><li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">In Meru’s business model, the cabs are owned by the company, so the company is responsible for the maintenance of the cars, which indirectly increases its expenses.</span></li><li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">The sudden surge in competition would lead to lower margins (lower profitability) and lower market share.</span></li><li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Meru cab still carries out their registration on call-centre booking.</span></li><li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Meru does not provide non a/c cabs.</span></li></ul><ul><li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">It becomes difficult for the user to contact the company if there is any server breakdown.</span></li></ul><h3><b>Opportunities for </b><b>Meru Cabs</b></h3><ul><li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">The unorganized market in India is huge, approximately 90%, and hence the potential is high.</span></li><li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Increasing internet penetration and up-gradation of technology can lead to an increase in leads.</span></li><li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Increasing disposable income.</span></li><li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">The shifting of consumers towards convenience creates huge demand.</span></li><li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">They should try different techniques of operating the cab, like, instead of giving them the car, providing the services to the one who owns the car.</span></li><li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">The company should try to operate more through the app Also, they should try to make the app interface more user-friendly.</span></li><li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Meru Cab should not only focus on metro cities but also tier-2 cities.</span></li><li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Meru cab should think about the strategic partnership, which will help the company to increase its market share.</span></li><li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Meru Cab also provides AAS (Assured Airport Services).</span></li></ul><h3><b>Threats for </b><b>Meru Cabs</b></h3><ul><li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Rising competition.</span></li><li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Because Uber and Ola are massive corporations, they can afford to invest heavily in R&amp;D.</span></li><li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">The presence of a large number of national players.</span></li><li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Customer preference changes daily, so it is hard to keep the customers satisfied every time.</span></li><li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">The future is unclear as the government imposes lots of regulations.</span></li><li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">OLA has a major market share which includes 80% of the customer base.</span></li></ul><p><span style="font-weight: 400;">The revenue model or the money-making process of Meru Cabs is firmly evaluated and profit-oriented. Let’s go through them in detail analysis in the upcoming section of the business model of Meru Cabs.</span></p><h2><b>Money Making Process of Meru Cabs</b></h2><h3><b>Revenue generated from the Cabs</b></h3><p><span style="font-weight: 400;">Meru Cabs has fixed an appropriate amount of pay from the drivers to the company regularly. They need to pay approx 1000 to 1200 rupees per day. So, it ultimately states that each car on the road facilitates them with some revenue consistently. Any money earned over Rs. 1200 / day goes to the driver. Meru, on the other hand, provides a certain minimum number of trips. However, Meru sets the rates per kilometre travelled.</span></p><h3><b>Advertisements</b></h3><p><img decoding="async" class="wp-image-232839 alignnone " src="https://iide-media.blr1.cdn.digitaloceanspaces.com/production/upload-1736872505661-5bb3f100614486046280f6c5b6a6f39e.webp" alt="Meru Cabs Advertisement-Business model of Meru Cabs" width="364" height="401"></p><p><span style="font-weight: 400;">Everyone requires publicity, Meru Cabs initiated a very innovative project in which HG collaborated with various brands and promised them to publicize their advertisements on their car. These advertisements pay the drivers a total sum of 1000 rupees. These advertisements are run for a specific amount of time. By this, the drivers are encouraged to bring more revenue.</span></p><p><span style="font-weight: 400;">Ever wondered how these cabs are allocated to various customers, within seconds? Let’s understand that together.</span></p><h2><b>Allocation of Cabs&nbsp;</b></h2><p><span style="font-weight: 400;">The heart of the business model of Meru Cabs lies in the centralised command centre, the drivers in the vicinity receives a message to arrive at a certain pickup location with a specific pick up time and board the ride. They maintain a keen record of the time they’re free along.</span></p><p><span style="font-weight: 400;">Lately, they’ve introduced a GPS tracking system for Cabs to deliver accurate information and show the visibility of the cabs in the App.</span></p><p><span style="font-weight: 400;">To cover all the locations across the city, always be an essential element for them. They ensure that the drivers are spread across the city and no particular area goes without a free cab for a long duration of time. This centralized system tracks all the cabs and thus do not take any chance to affect the business.</span></p><p><span style="font-weight: 400;">As we are now close to the end of the business model of Meru Cabs, we’ve analysed certain major challenges for them. Let’s study them.</span></p><h2><b>Challenges to Meru Cabs</b></h2><p><span style="font-weight: 400;">There’s no doubt that Meru has been a success story till now, but what hurts the most is the company’s No-holiday Policy. The drivers have to work every single day, in case of sickness or family emergency they still need to pay the permanent amount fixed by the company.</span></p><p><span style="font-weight: 400;">In India, working every day is not a problem from a driver’s perspective as they are already used to it but it hurts them financially when they need to take urgent leaves. The company is now facing direct competition with Ola Cabs, Mega Cabs, Uber, etc.</span></p></div></div>

<div class="raw-html-embed"><div data-bglz="1" class="et_pb_text_inner"><h2><b>Conclusion</b></h2><p><span style="font-weight: 400;">Hope in this case study, you will be able to find Meru cabs’ business model and how it works. This business model provides a complete solution for reaching the destination and making bookings through calls.</span></p><p><span style="font-weight: 400;">Meru Cabs are still facing losses as they are not able to find a break-even financially. The company is still under constraints due to factors like internal inefficiencies, long cab downtime, lack of qualified drivers, driver strikes, increasing costs, expanding operations, and competition from other players.</span></p><p><span style="font-weight: 400;">In this case study, we have tried to explain from top to bottom how Meru cabs work, function, and provide services. Meru cab has still not changed their method of the booking system, so if they change that method in the future it might create a boom in the transportation sector.</span></p><p><span style="font-weight: 400;">So, we also now know that Digital Marketing skills are gaining importance in today’s corporate world. You can learn these digital marketing skills too, with our </span><a href="https://iide.co/online-digital-marketing-certification/?utm_source=Organic&amp;utm_medium=Course_Differentiator&amp;utm_campaign=Short_Courses"><span style="font-weight: 400;">Short term certification courses in Digital Marketing</span></a><span style="font-weight: 400;">.</span></p><p><span style="font-weight: 400;">If you’re interested in learning more about digital marketing, you can check out our </span><a href="https://bit.ly/Survey-On-DigitalMarketing" rel="nofollow noopener noreferrer" target="_blank"><span style="font-weight: 400;">Free Digital Marketing Basics Masterclass</span></a><span style="font-weight: 400;"> by Karan Shah, IIDE’s Founder and CEO.</span></p><p><span style="font-weight: 400;">Thank you for reading this case study! We hope you find it interesting, would love it if you can spare some time sharing your view on it. If you would like to know more about us drop your email in the comment section and we will revert to you.</span></p></div></div>

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Are you searching for the Business Model of Meru Cabs? In this case study, we’ll cover its Business strategy, Swot Analysis and many more.

Innovative Business Model Of Meru Cabs - Updated In 2025

<div class="raw-html-embed"><div class="et_pb_text_inner"><p><span style="font-weight: 400;">MERU was the first chauffeur provider, founded by Mr Neeraj Gupta in 2000. The company focuses on providing affordable and hassle-free transportation to different companies’ employees and customers. It also provides premium-class services like a/c cars, tabs, etc.</span></p><p><span style="font-weight: 400;">Lately, the company has started providing services in the B2C sector, but its main aim is to increase the focus on the B2B section as it contributes 40-45% of its revenue.</span></p><p><span style="font-weight: 400;">So in this case study, we are going to explain the Business model of Meru Cabs, explaining how the company still owns 12% of the market share. We’ll be covering an in-depth analysis on its&nbsp;</span></p><p><span style="font-weight: 400;">But first, we should understand the company.</span></p></div></div>

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A Case Study on the Innovative Business Model of Meru Cabs

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