Evolution of taxis industry in India

• Brief presentation on Taxi industry

• By Neeraj Gupta | April 22nd 2016

Evolution of taxis industry in India

• B&Y & Rickshaws

• Tourist taxis

• Radio taxis

• App based Aggregators

• Permit issued by respective RTOs
• Fares / Fuel type / driver qualifications are regulated
• Point to point intra city
• Street pickups

• All India Tourist Taxis permit
• Primarily introduced for intercity services
• Highly fragmented

• Permit issued by respective RTOs
• Fares / Fuel type / driver qualifications are regulated
• Multiple booking options e.g. call center, app

• Tourists taxis permits
• Booking only thru App
• Fares / Fuel type / driver qualifications are not regulated

Industry statistics and trends

• ~ 10,00,000 vehicles

• ~ 18,00,000 vehicles

• ~ 12,50,000 vehicles

• Shift of market share from regulated to un regulated taxi aggregators

Expectations of stakeholders

• Chauffeurs
• • Better earnings • Stability of earnings • Social acceptance and engagement • Professional respect

• Consumers
• • On time service • Safety • Quality of car • Convenience, comfort • Transparency in billing • Availability • Simplified payment process

• Technology advancement has led to increase in consumer expectations

Impact of Technology

• GPS / GPRS based cab tracking and dispatch

• ETA based booking

• Simplified and multiple payment options

• E – billing and receipts

• Mobile app based single touch booking

• Tech is key enabler for growth of taxi industry

Impact of funding

• Creating economically unviable business models

• Risk of 20,000+ crores vehicle loan becoming NPA

• Eliminating competition through predatory pricing

• Creating monopolies leading to exploitative pricing

Impact of regulatory vacuum

• No separate license
• No separate taxi permit / use of tourist taxi permit
• No control on :
• Quality of services
• Safety
• Driver credentials
• Pricing
• Fuel type

Impact of deceptive pricing

• Misleading fares :
• Base fare
• Minimum fare
• Ride time charges
• Per km charges
• Surge pricing / peak time charges

Way forward…

• Taxis should be
• treated as an
• essential
• service

• Uniform tariff regulations

• Stop subsidizing drivers as per new Ecommerce policy

• Separate taxi permit for point to point city taxis

• Uniform license for all intra city taxi operators

• Screening norms for drivers