Make My Trip hates profits
Make My Trip has been in the business for 13 years. Yet, profit eludes the company.
Make My Trip has been in the business for 13 years. Yet, profit eludes the company.
NDBJ Brief:
Make My Trip is India’s biggest online travel brand. Analysts valued it at $ 1.8bn.
It had acquired Go Ibibo in 2016, and other brands such as RedBus, Ryde and Rightstay.
Its FY 18 revenue was $ 675mn . It was 50% more than FY 17 ( $ 447mn).
It reduced losses from $ 73.1mn in FY 17 to $44.1mn in FY 18.
It’s CEO Deep Kalra cites Amazon growth curve for focusing on growth and not on profit.
NDBJ Insight:
Make My Trip is not Amazon. Indian travel market is small, though It owns 58% of the market after the merger. IRCTC owns 22%. Clear Trip and Yatra own the rest. Total market size is around $1bn.
India’s travel online market may be a $4bn market by 2020. Also, online is a tiny fraction of India’s overall travel market; worth $ 48bn. MMT does not even hold 1%.
Booking and Expedia are similar companies. Both are competing to grab the travel market in the rest of the world. Priceline had acquired Booking to pave the way for profitability. MMT may do the same with more acquisitions.
On the other hand Amazon owns 50% of the e-commerce market in the USA( $600bn approx.). USA’s retail market is worth $ 4tn approx. Unlike MMT Amazon owns 5% of USA’s retail market.
Also, Amazon has produced profits elsewhere, with the help of AWS ( double digits margins). It also made profits in the main business as early as 2001, six years after it launched.
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