Taxi Services in Delhi:
As per techsciresearch India, taxi market stood at around $ 6.4 billion in 2016 and is forecast to grow at a CAGR of 13.7% during 2017 – 2022, to reach $ 14.3 billion. Which appears to be good news for the players who are in taxi services in Delhi.
Some of the major players operating taxi services in
These figures looks quite attractive but the ground reality is quite different, because these big numbers lies with the management of these big companies who plays with the number but unfortunately are totally unaware of ground reality, they are eating up all the juices of the fruit and leaving only the seeds of fruit for the driver. They themselves are drawing a handsome Salary. Taxi fares are pretty low in Delhi right now due to excessive competition
The main drawback of corporate taxi services in Delhi right now are:
- Drivers are themselves made to buy vehicle on loan.
- Most drivers are generally not good with finance numbers and hence are not able to evaluate the running cost of vehicles and hence demand right fare from the companies.
- Maintenance cost of vehicle is not considered by these companies, which can go up to 1 to 2 Lac INR for engine overhauling.
- Depreciation cost of vehicle.
- Cost of various paper work such as insurance permit, pollution are not considered by these companies.
- Inflation in fuel prices which rises mostly , depreciates rarely.
- Personal expenses of Driver which include food/house rent / school fees of children / Emi of car,
- The cost of buying new vehicle after old vehicle is exhausted.
- Some of these companies hold the payment of cab owners for almost 45 to 50 days and even after calling them 100 times payment may not be made.
- Some of the above companies charges hefty commission for duty which can go as high as up to 40 %, these companies are generally who have corporate clients, but how the hell driver would maintain his car for corporate if he gets peanuts.
- Due to high incentive initially offered by ola & uber the number of Vehicles have increased drastically resulting in higher competition and hence lesser profit.
Right now future is pretty uncertain of taxi market business as a whole in India as the diesel prices is almost equivalent to that of petrol, so saving is not much on diesel engine, plus the validity of registration of commercial diesel vehicle has been reduced to 5 years, so as soon as a vendor pays off the loan he has to buy new diesel vehicle or change it to white number, this again will lead to malpractices also we are not sure when the government one fine day will ban diesel vehicle and ask for electrical vehicle.
Taxi market will be stabilised again when the person such as doctors, engineers, lawyers and all the tom dick and harry who had earlier entered this profession by buying a vehicle and giving it to a driver due to the lure offered earlier by Ola and Uber will slowly leave this profession.