Increasing Demand For Taxi Services In India

India has the world’s second largest population with 33% urban share which is expected to grow at 9% every year. Being an emerging economy, India’s significant amount of growth largely depends on the Transportation sector. The government is expanding rapid mass transit systems (eco-friendly) in big cities and plans to provide the same in tier 2 cities. However, a huge number of people still travel by cabs regardless because the metro network in any city (except Delhi & NCR to some extent) fails to cover the entire destination that citizens want to reach. one of the largest taxi services provider in India they offer first class taxi services all over India. Cabs are convenient for long distances as, unlike metro rails, you remain seated throughout the for the tourtaxi services in india

Faults In Old Cab Industry

The potential of this market has been successfully tapped by the cab aggregators who do not own a single cab but merely connect customers to drivers via technology, and their profits have been growing exponentially due to rising demand. Cabs were available before the advent of app-based cab services, but black and yellow taxi services in India were problem-ridden such as:

  • Dishonest cab drivers who instead of going by meter would try to negotiate a lump-sum which was usually way higher than the metered amount.
  • Not every black and yellow taxi (for example, Ambassador Taxis in Kolkata) had AC, and it was difficult to travel in hot weather.
  • Catching a cab involved walking to the main road and waving at every vacant cab passing by and the driver had the ultimate choice of giving a ride.
  • Even if a cab stopped for you, it depended on the destination where you wanted to go whether you’d get the service. Drivers would usually reject pick and drop of small distances as they preferred providing services only for longer distances.
  • Hiring a cab late at night was next to impossible because of the exorbitant amount of money demanded by the drivers.
  • Cabs would deny dropping at your exact desired location and leave you on the main road instead.
  • Passengers wouldn’t even know if the driver held a valid driving license. Hence, safety and security of the passenger were not ensured.

The Solution Providers

The app-based cab booking services offered by aggregators like Ola, Uber, Meru, etc. provided a comprehensive, cost-effective solution to the problems above. These cabs run on-meter, and the fare is shown on the app before booking. Each cab is a decent commercial vehicle which provides you free AC, picks you from the point you’re located at and drops you at the exact desired location whether it’s day or late at night. This has been possible because the bargaining power is not provided to either the customer or the driver and fares are standardized keeping in mind the affordability and the profitability of the stakeholders. These cabs also provide you with the driver’s information, and they hold a valid driving license. A plethora of factors like these have contributed towards the sky-rocketing demand for cab services in India.