A conversation with a cab driver

Recently I took an EasyCab from the Bangalore Airport to my house. My colleague wanted to understand the business model of these franchisee cabs.

The driver told us he had to buy the car himself. MeruCabs and EasyCabs have gone with Mahindra Logan (very comfortable car). Supposedly for every 100 cars bought, Mahindra gave about 25-30 free cars to these cab companies.

The cab service assures a business of Rs 4500 per day to each car driver and in return they have to pay Rs 900 per day to the cab company. During hay days this particular cab driver made Rs 150,000 a month for about 4 months and after that he is struggling to have a business of even Rs 25,000 a month. The maintenance of the car, diesel is on the driver.

The cab company is not able to give him Rs 4500 business but the driver is obligated to pay Rs 900. Doesn’t seem to sound fair.The drivers tried to protest but few politicians from 3 political parties promised to help and as usual they only divided the driver’s union into 3 sections.

However it was good to see how that section of society was benefiting from the improved economy.

Comments

  1. Not sure how the numbers were arrived at in the first place.

    Their business can be improved if they are made a bit cheaper (they can switch off the AC if that makes sense for the rates to come down), I am sure a lot of us would prefer to take one while going to the malls than driving down there and paying hefty parking charges..a good alternative for the ever “no” saying autos…

  2. If the easyCabs followed the lead from UK budget airline easyJet you would have booked exclusively online, you would have been charged extra for putting your bag in the trunk (hold), made to buy an overpriced sandwich and terrible coffee, then dropped off at the wrong terminal. But at least that would have been better that Ryancabs, who would have done all of the above, charged you extra for breathing, then dropped you at the wrong airport (in a different city).

Leave a Reply