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.