Traditional taxi operators, majority of whom are owners-cum-drivers, are fearing doomsday for the industry with the entry of mobile app-based taxi aggregator like Ola. “It is an attempt by corporates to kill individual entrepreneurs, curb competition and create monopoly,” the operators in the district charged.
Ola and similar aggregators claim to operate under city taxi concept; however, Mangaluru does not have the city taxi system under the Regional Transport Authority, said K. Anand, General Secretary of Dakshina Kannada District Taximen and Maxicab Association. Even for city taxis, the minimum fare fixed by Bengaluru RTA is Rs. 70 and per km fare is Rs. 14.5 while Ola offers Rs. 49 and Rs. 12/14 respectively.
Mr. Anand told The Hindu that taxis in Mangaluru operate either on All-India or state permits and offer competitive fares. There is scope for bargain too. They have to charge two-way fare even for a drop as the return trip is not assured, unlike in Bengaluru. Taxi aggregates may work well for cities like Bengaluru where return trip is assured; but not for Mangaluru and smaller places.
With cut-throat fare competition, the taxi aggregates are all set to kill individual entrepreneurs, who do not wish to lose their identity by attaching their cabs to the aggregates, said Ramesh Kotian, General Secretary of Udupi unit of Taximen and Maxicab Association.
Mr. Anand further alleged that Ola has been paying from its pocket to drivers, about Rs. 31,000 assured payment a month even though the drivers had not clocked required number of distance. “How can it pay from its pocket unless the company has ulterior motives to capture the entire market,” he questioned. One fine day, the company would ditch drivers who had attached their vehicles and bring in its own fleet after monopolising the market, he said.
Responding to this, Ola’s Mangaluru operational head N. Sadhanadhan said initially they paid fixed sum to drivers. However, Ola has now moved to commission basis and is confident of getting drivers return trips so as to provide assured revenue, he said.
Mr. Anand said the Association would soon decide the future course action; but is firm on banning aggregators’ operation in Mangaluru.
CAB CALLING
*Dakshina Kannada has about 5,000 taxis and Mangaluru about 3,000
*Of them, about 3,000 in the district are owner-cum-drivers
*Fares are charged on the basis of minimum 8 hours or 300 km, whichever is less
*Per km fare starts from Rs. 8 for mini cars and goes up to Rs. 14 for multi-utility vehicles
*Drop to airport from Mangaluru costs Rs. 500 while it is about Rs. 250 in Ola
