Ola, Uber ‘rebels’ to launch fixed-fare service soon

After exiting leading cab aggregator firms following disputes over payment, a group of taxi drivers have come together to offer a similar service round-the-clock, but with a fixed fare structure.

By :  migrator
Update: 2018-11-29 19:54 GMT

Chennai

Lacking the technology platform that enabled Ola and Uber to establish themselves, the new venture, Ottunargal Thozhilalargal Sangam (OTS), is betting on their plan to charge only a fixed fare regardless of the time of the day.

Affiliated to the CITU, the Tamil Nadu Call Taxi Thozhilalargal Sangam was started with nearly 200 taxi drivers, who severed their ties with the popular cab aggregators in February following dispute over payment. Nine months on, its members say they have managed to receive modest patronage from the public.

The biggest challenge for them is lack of sophisticated – and expensive – technology that forms the backbone of the aggregation operation. “It is not economically viable for us to develop a new mobile application and pay monthly charges to the big brands like Paytm and Google,” said M Boopathi, the general secretary of the union. Thus, the drivers are dependent on word of mouth publicity – and WhatsApp – to attract more customers. “Simultaneously, we are mulling alternative ways to expand our reach,” he added.

According to him, many taxi drivers had entered the profession after availing huge loans to buy the vehicles. “But now they are finding it difficult to pay the dues and insurance premium in the backdrop of stiff rise in fuel prices,” Boopathi said.

Now, the union is planning to expand its operations by streamlining services and fixing a single rate –irrespective of peak or nonpeak hours.

The association has already urged the State Transport Department to fix a tariff for aggregators, but are yet to receive any response. “We will soon rollout taxis with meters that can print bills at the end of the trip. It will cost up to Rs 2,000 to fix the meter. This will be implemented soon,” added the union leader.

FARE

Rs 100 for first 4 km

Rs 18 for each additional kilometre

Rs 16 for mini category

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