Brief presentation on Taxi industry By Neeraj Gupta

Brief presentation on Taxi industry By Neeraj Gupta | April 22 nd 2016

Evolution of taxis industry in India B&Y & Rickshaws Tourist taxis Radio taxis App based Aggregators § Permit issued by respective RTOs § All India Tourist Taxis permit § Permit issued by respective RTOs § Tourists taxis permits § Booking only thru App § Fares / Fuel type / driver qualifications are regulated § Primarily introduced for intercity services § § § Highly fragmented Fares / Fuel type / driver qualifications are regulated Fares / Fuel type / driver qualifications are not regulated § Point to point intra city § § Street pickups Multiple booking options e. g. call center, app

Industry statistics and trends 2006 108, 000 2016 13, 000 2011 221, 000 200, 000 630, 000 1, 044, 000 800, 000 ~ 10, 000 vehicles 1, 000 ~ 12, 50, 000 vehicles 9, 000 ~ 18, 000 vehicles Shift of market share from regulated to un regulated taxi aggregators

Expectations of stakeholders Consumers Chauffeurs • On time service • Better earnings • Safety • Stability of earnings • Quality of car • Social acceptance and • Convenience, comfort engagement • Transparency in billing • Professional respect • Availability • Simplified payment process Technology advancement has led to increase in consumer expectations

Impact of Technology GPS / GPRS based cab tracking and dispatch Mobile app based single touch booking ETA based booking Simplified and multiple payment options E – billing and receipts Tech is key enabler for growth of taxi industry

Impact of funding Total VC funding raised / committed of ~ 18, 000 Crores by top two aggregators in last 3 years Creating economically unviable business models Risk of 20, 000+ crores vehicle loan becoming NPA Consumers Tourist Car owners Eliminating competition through predatory pricing Providing services below cost price Non sustainable commercial arrangement 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… Uniform license for all intra city taxi operators Separate taxi permit for point to point city taxis Taxis should be treated as an essential service Stop subsidizing drivers as per new Ecommerce policy Uniform tariff regulations Screening norms for drivers