With too many players in field, fares dip

  • | Friday | 14th December, 2018

“A driver who does not have a public service badge will again charge lesser because of his inexperience,” he said. Many people book all three and just take the one which comes first, even if it includes a cancellation fee. “With the new rules stating that we can drive only 8 to 10 hours a day, we need business constantly to make a profit. “Private use vehicles do not have all these capital expenditures, so it makes it a stress-free operation and have the flexibility to charge lower,” said another cab driver P Suresh. “With no daily rent involved, the fares are lesser than what we charge,” he said.Fare aggregators, who rope in vehicles owned by individuals, say too many players in the business including these private vehicles has made their business fall by at least 10%.“Among aggregators, we have ola, uber and red taxi.

Conventional taxi operators as well as cab aggregators, who are already reeling under the growing competition, are beginning to feel the pinch of illegal taxi operations by private vehicles.These private vehicles, who pay less road tax, life tax and insurance amounts, charge at least 20% lesser than normal cabs, thus becoming a popular choice for youngsters and tourists on a shoestring budget.Call taxis and private cab owners say their business has fallen by at least 50% after fare aggregators entered the scene. However, now fare aggregators say these privately-owned vehicles has led to their business reducing slightly.“Many fare aggregators have become favourites among people because they charge in single digits per kilometre for small cars and available in hardly 10 minutes within the booking time,” said K Kumaravelu, a cab vehicle owner and driver for the past 35 years. “With no daily rent involved, the fares are lesser than what we charge,” he said.Fare aggregators, who rope in vehicles owned by individuals, say too many players in the business including these private vehicles has made their business fall by at least 10%.“Among aggregators, we have ola, uber and red taxi. Many people book all three and just take the one which comes first, even if it includes a cancellation fee. For them it is a loss of just Rs 30, but for us it is a loss of fuel, time and business,” said D Parthiban, who drives for a popular fare aggregator in the city. “With the new rules stating that we can drive only 8 to 10 hours a day, we need business constantly to make a profit. With these private vehicles have a price edge over us, it does cut into our business,” he added.Cab drivers say they do not have an option but to transfer their additional expenses on the customers and again drive almost throughout the day to break even. “Private use vehicles do not have all these capital expenditures, so it makes it a stress-free operation and have the flexibility to charge lower,” said another cab driver P Suresh. “A driver who does not have a public service badge will again charge lesser because of his inexperience,” he said.

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