MakeMyTrip completes Savaari transaction, acquires controlling stake in cab rental company
MakeMyTrip said on Thursday it had completed the Savaari transaction by aquiring a controlling stake in the car rental service provider. MakeMyTrip had announced in its second quarter FY23-24 results that it has entered into an agreement to acquire a majority stake in Savaari Car Rentals Private Limited. Savaari will continue to operate as an independent entity led by the existing leadership team, the company said in a statement.
“All the formalities of the acquisition of the controlling stake are now complete. This acquisition marks a pivotal moment in the $3 billion-plus, yet largely unorganized, intercity market. We are now looking to transform this space by leveraging technology as well as deeper consumer understanding from MakeMyTrip.
The timing of the acquisition couldn’t be better, as it coincides with the improved road infrastructure in the country and a wider acceptance among travellers to book intercity cab services online,” said Gaurav Aggarwal, founder and CEO, Savaari Car Rentals.
Rajesh Magow, co-founder and group CEO of MakeMyTrip said the inter-city cab service remains largely offline, with low online penetration, fragmented supply, and a lack of standardization in service.
«We have encountered similar issues in intercity private bus transport where we now have a leadership position through redBus.
With this majority stake in Savaari, we seek to extend that leadership to adjacent segments in ground transport. The founding members and the leadership of Savaari have done an incredible job over the past few years in becoming the premier player in this category. Our endeavour now will be to further boost growth with our technology and consumer insights expertise,»he added.
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