Uber’s Tryst with Autos

Auto rickshaws in India have traditionally been the most prominent mode of transport. I have made out with my girlfriend in one.

The market, although unruly in most cities, is changing. It is slowly changing itself to keep pace with its biggest rival: Ridesharing.

Below, is an FEE piece that talks about how Auto Rickshaws are changing in India.

The Rickshaw Market Is Being Uberized

One of the great pleasures of visiting other countries is seeing how different cultures have attempted to solve the great human problem of getting from A to B. The question of transit is both a personal human undertaking and also a national challenge, essential for individuals and societies to thrive.

What’s so interesting is the vast array of solutions we’ve come up with to such a universal puzzle. There are often unique local obstacles to navigate, but the variety of different forms of public transport is wonderfully broad.

In India there is a striking number of options – some ingenious, some seemingly bonkers – but then when you have a billion people to move around a bit of variety is understandable. Pedal power is still in effect, the classic cycle rickshaw is a genteel option for short trips.

Busses packed to bursting careen through city centres with passengers dangling off the side or climbing onto the roof (Virgin Trains eat your heart out). The busses don’t so much as stop but decelerate long enough for customers to hurl themselves aboard. Grand looking Hindustan Ambassador taxis lazily cruise the streets often overcharging with a new wave of Uber and Ola drivers snapping at their heels.

The Auto-Rickshaw

But by far the most fun form of transport for traversing Indian cities is the auto-rickshaw. A physical and economic marvel, you can be whisked across town for a few rupees in what feels like a cross between a go-kart and a Rascal van. They perform up to 20% of the 229 million motorised trips taken every day in Indian cities.

The multitude of crisscrossing routes means you can usually catch one to where you want to go, but determining the routes can be a challenge. Local knowledge is vital. Stops are also a fluid concept, most will pull over to squeeze on another fare. It’s amazing how what seems like a vehicle with three passenger seats can multiply into six with some judicious lap-sitting and a bit of hanging off the side.

The patchy and chaotic arrangement for matching supply and demand, as well as sometimes variable pricing, left inefficiencies in the system crying out for some tech-based organization.Each of these three-wheeled people movers represents an act of economic endeavour, an entrepreneurial venture into the fast flowing current of Indian transport competition.

They provide jobs for tens of thousands of drivers and are inexpensive to buy and run. As old models are replaced by modern versions powered by compressed natural gas, they are also helping reduce pollution in overcrowded urban areas.

Such is their ubiquity it’s understandable that Uber turned its sights on trying to capitalize the auto-rickshaw market. The patchy and chaotic arrangement for matching supply and demand, as well as sometimes variable pricing, left inefficiencies in the system crying out for some tech-based organization.

Using the billion mobile phones in India, initially hail companies would track real-time driver availability by text message. As the number of smartphones has increased, however,  the use of live GPS tracking has allowed the potential for riders and drivers to connect in a timely and systematic way.

This mash-up of new and old technology spawned a host of start-up hailing firms with home-grown Indian companies Jugnoo, AutoWale and Ola seeing off competition from Uber which has suspended its auto-rickshaw service in India. Jugnoo, which bought out AutoWale last year, recently raised $10 million in its latest investment round.

Empowering drivers, many of whom are illiterate, with technology has seen incomes double and brought at least a little order to an often haphazard and stressful job.

With so many people to keep on the move, improving the efficiency of India’s auto-rickshaws is a significant contribution to the country’s transport mix, especially for the less well-off who rely on this low cost form of transportation. As Jugnoo CEO Samar Singla said:

“Uber is for the top 20 per cent of people, we’re for the bottom 80 per cent.”

The post The Uberisation of the rickshaw appeared first on CapX

Joe Ware


Joe Ware

Joe Ware is a writer at Christian Aid.

This article was originally published on FEE.org. Read the original article.

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Strike it Off!

Strikes. Strikes by Auto Rickshaw drivers. Strikes by Bus Transport employees.
Strikes. An old Blackmail method used by the Communists and Socialists [the Left] that unfortunately works even today.

There are two common reasons why Transport related employees strike:

  • Competition from the Private Sector or others.
  • Demand for Hike in Wages.

Competition from others

Frequently seen in cities like Mumbai, Bangalore and Delhi, both, employees of state run transcos, as well as auto/taxi drivers have often protested against others disturbing their Monopoly.

Recently, autos and taxis in Delhi went on a strike demanding that the government shut down app based aggregators such as Ola and Uber.

The irony of the situation is that such strikes force the public to turn to the aggregators, totally defeating the purpose of the strike. In cities like Mumbai and Pune, an auto or cab strike might affect businesses because both run by the meter. However, the use of non Kaali-Peeli cabs and auots is quite high in the city.  In Delhi, Bangalore, Chennai, these strikes would be problematic, because the autos in the city rarely go by meter. In the long run, an Uber or Ola would cost lesser than an auto anywhere in Delhi.

Demand for Hike in Wages

The other reason for a strike, a more legitimate one, is the demand for a hike in wages.

Recently, employees of BMTC, KSRTC, NW/NE-KRTC in Karnataka went on a 3-day strike demanding a 35% hike in wages. Though the strike lasted only three days, it was declared as indefinite, and would have gone on had the Government of Karnataka not convinced the striking staff to accept a 10.5% hike. This strike made life miserable for people in Bangalore. Autos began fleecing commuters, something that they are experts at. To compound the issue, the Karnataka Government’s draconian 1950-era rules for Cabs and Aggregators just made life miserable. With some universities choosing to remain open, life looked very dystopian.

In Ocober 2015, BEST employees threatened to strike because the higher-ups held back their Diwali bonus. Common sense prevailed and the strike was called off.

This kind of strike is a bit legitimate, since employees do deserve an occasional pay hike.

Now, what can be done?

What can be done about a strike?

A Strike or Bandh can cripple a city, or in this case, a state. It kills productivity, and destroys the economy. Of course, there are some people who claim that Strikes and Bandhs are Good for the Environment.

Here are some methods to help limit strikes and their impacts on the society and its economy.

  1. Decentralisation
    A decentralised transport system limits the impact of a strike. A strike by BEST employees won’t affect transport in Nagpur. However a strike by BMTC will affect Mysore since BMTC is essentially a subsidiary of KSRTC.
  2. Salaries must be on par with inflation and the private sector. Bus drivers and conductors aren’t the ones with the easiest job in the world. Pay them what they’re worth.
  3. Take strict action against those striking. Just because employees belong to a government body, that doesn’t let them strike as and when they feel like.

 

 

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