Mumbai autowala gives an actress a fake note, We’re left wondering

Recently, it emerged that an Autowala in Mumbai gave an actress Megha Chakraborty a Fake 100 rupee note.

The Fake 100 Coupon Note, signed by Santa Claus of the Children's Bank of India.
The Fake 100 Coupon Note, signed by Santa Claus of the Children’s Bank of India.

ScoopWhoop did a fantastic analysis of the note:

  • It claims to be issued by the Children Bank of India
  • It claims its value is One Hundred Coupon
  • The guarantee on it says ‘I promise to play with the coupon hundred’.
  • It is signed by Santa Claus.

Now, while we leave the analysis of the note to the experts at BuzzFeed and ScoopWhoop, we are left wondering about something else.

It is 2016. Cashless payment is here. UPI is here. Jio is here. RFID Cards are here. Uber and Ola are also here. PayTM and MobiKwik are here. Why pay with Cash?

The excuse that some people may not have a bank account, or a phone is no longer a valid argument, atleast not in India’s largest city.

There are two ways of achieving cashless payments:

The Physical Method

This is simple. An RFID card. BEST has a prepaid smart card in place for buses. Mumbaikars would know by now that there are FOUR prepaid cards available in the city: One for BEST, one for the Suburban Railway, one for the Metro and one for the Monorail. While the erstwhile Go Mumbai Smart Card that was scrapped in 2011 was valid on both BEST and the Suburban Rail, the RTA has mooted a common mobility card for all forms of transit. If this comes into play, this can be extended to auto-rickshaws too. Mumbai’s much, much younger sibling Ahmedabad has already raced ahead by enabling autos to be part of the Smart Card system. Of course, this will work only in a few cities. The Greater Mumbai Region, Pune, Ahmedabad, Surat, and to a certain extent Bengaluru, are among the few cities where one can find autowalas return even the last rupee change to the passenger. Delhi’s autos, with its fancy GPS enabled fare-meters NEVER ply by meter, so the chances of them accepting a prepaid card is close to zero. Gurgaon, and other areas, well, don’t even have a fare-meter in the vehicle, so tough luck.

The Digital Method

Again, Mumbaikars would know this well. The UTS app by the Centre for Railway Information Systems [CRIS] allows commuters to buy tickets and Season Passes using an Android phone and a mobile wallet. Of course, it has its own share of problems. This is also the model followed by Uber and Ola for non-cash rides. All one requires for this is a prepaid wallet and a phone. While Ola chose to partner with ZipCash, Uber chose to partner with PayTM. In some cities, autowalas have PayTM QR codes affixed to their vehicles, all the passenger needs to do is open the app, scan the code and transfer the amount. Walah!

The Bottom Line

We are not a poor nation. We are not a third-world nation. When we have advanced so much to the extent of having prepaid cards for bus tickets, and also buying suburban rail tickets on the phone, why can’t we slowly do away with cash based transit systems?

 

 

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Subsidies in Transport: Good or Bad

Subsidies in Transport are visible everywhere. Tamil Nadu has kept its bus fares at rock bottom rates, gives free bus passes to school students, Delhi has dirt cheap rates with the maximum fares being ₹15 and ₹25 in a non-AC and an AC bus. So, what else?

As stated earlier, extreme amount of subsidies bleeds the Transco of its revenue, and create a heavy indifference among the commuters to quality of services. Given that a vast majority of India’s transport services are entirely General Class services, revenues are inherently low. Similarly, in the case of Roads, a lot of people argue that Tolls are a “scam”, especially when they pay road taxes. Again, this is a false notion, one that can be explained if we cared to look at the Basic Difference between Toll and Road Tax: Toll is a User Fee. Road Tax is a Tax. I repeat, Toll is a Fee, and not a Tax. A tax is levied on a category of people on the basis of the income or what they own, in this case a vehicle. A toll, or a fee, is levied only on those who use the certain service or product, in this case the road. Many users accept this, but go on to further state that they are unjustly charged for using the entire section of a road rather than just the portion they used. Again, this is a flawed point of thought. In India, it would be a superhuman effort to set up Toll Plazas at every junction, man them [an automated one wouldn’t work, people will definitely find a way to avoid paying it then] and operate it. Of course, the Coimbatore bypass has 6 Toll Plazas on it, but 6 of them on a 28km two lane road, we all know the jam that occurs most of the time.

Toll Roads and other BOT transport projects, such as BOT Railway lines, like the Mumbai Metro One, Rapid Metro Gurgaon, Hyderabad Metro, et al, have specific intervals at which they are allowed to hike fees and fares, which makes it easier to operate and break even. In case of Transcos, most of them are either under pressure from the state or municipal body to keep their fares low [Prime Examples being DTC, MTC, TNSTC]. A few exceptions exist in the form of BEST, BMTC, TSRTC, which by virtue of the autonomy enjoyed by them revise [hike or slash] their fares at a reasonable interval. One method of determining rates is market oriented rates, which is what Uber and Ola normally does. When demand goes up, fares go up so that those who are willing to pay extra for it. However, this isn’t a feasible solution in all cases. In such situations, BEST’s Happy Hours concept works well. Similarly, KSRTC and the Indian Railways have successfully emulated the aviation industry with dynamic pricing in the form of Premium Tatkal tickets. Every transport corporation has schemes to attract customers. Similar to Toll Plazas offering a return ticket and seasonal pass, buses offer Passes and other forms of subsidies to frequent customers like the market.

Now, to take this further, below is an article from the Foundation for Economic Education which talks about the ill effects of subsidies.

 

The Distorting Effects of Transportation Subsidies

This article won the 2011 Beth A. Hoffman Memorial Prize for Economic Writing.

Although critics on the left are very astute in describing the evils of present-day society, they usually fail to understand either the root of those problems (government intervention) or their solution (the operation of a freed market). In Progressive commentary on energy, pollution, and so on—otherwise often quite insightful—calls for government intervention are quite common. George Monbiot, for instance, has written that “[t]he only rational response to both the impending end of the Oil Age and the menace of global warming is to redesign our cities, our farming and our lives. But this cannot happen without massive political pressure.”

But this is precisely backward. Existing problems of excess energy consumption, pollution, big-box stores, the car culture, and suburban sprawl result from the “massive political pressure” that has already been applied, over the past several decades, to “redesign our cities, our farming, and our lives.” The root of all the problems Monbiot finds so objectionable is State intervention in the marketplace.

In particular, subsidies to transportation have probably done more than any other factor (with the possible exception of intellectual property law) to determine the present shape of the American corporate economy. Currently predominating firm sizes and market areas are the result of government subsidies to transportation.

Adam Smith argued over 200 years ago that the fairest way of funding transportation infrastructure was user fees rather than general revenues: “When the carriages which pass over a highway or a bridge, and the lighters which sail upon a navigable canal, pay toll in proportion to their weight or their tonnage, they pay for the maintenance of those public works exactly in proportion to the wear and tear which they occasion of them.”

This is not, however, how things were actually done. Powerful business interests have used their political influence since the beginning of American history to secure government funding for “internal improvements.” The real turning point was the government’s role in creating the railroad system from the mid-nineteenth century on. The national railroad system as we know it was almost entirely a creature of the State.

The federal railroad land grants included not only the rights-of-way for the actual railroads, but extended 15-mile tracts on both sides. As the lines were completed, this adjoining land became prime real estate and skyrocketed in value. As new communities sprang up along the routes, every house and business in town was built on land acquired from the railroads. The tracts also frequently included valuable timberland. The railroads, according to Matthew Josephson (The Robber Barons), were “land companies” whose directors “did a rushing land business in farm lands and town sites at rising prices.” For example, under the terms of the Pacific Railroad bill, the Union Pacific (which built from the Mississippi westward) was granted 12 million acres of land and $27 million worth of 30-year government bonds. The Central Pacific (built from the West Coast eastward) received nine million acres and $24 million worth of bonds. The total land grants to the railroads amounted to about six times the area of France.

Theodore Judah, chief engineer for what became the Central Pacific, assured potential investors “that it could be done—if government aid were obtained. For the cost would be terrible.” Collis Huntington, the leading promoter for the project, engaged in a sordid combination of strategically placed bribes and appeals to communities’ fears of being bypassed in order to extort grants of “rights of way, terminal and harbor sites, and . . . stock or bond subscriptions ranging from $150,000 to $1,000,000” from a long string of local governments that included San Francisco, Stockton, and Sacramento.

Government also revised tort and contract law to ease the carriers’ way—for example, by exempting common carriers from liability for many kinds of physical damage caused by their operation.

Had railroad ventures been forced to bear their own initial capital outlays—securing rights of way, preparing roadbeds, and laying track, without land grants and government purchases of their bonds—the railroads would likely have developed instead along the initial lines on which Lewis Mumford speculated in The City in History: many local rail networks linking communities into local industrial economies. The regional and national interlinkages of local networks, when they did occur, would have been far fewer and far smaller in capacity. The comparative costs of local and national distribution, accordingly, would have been quite different. In a nation of hundreds of local industrial economies, with long-distance rail transport much more costly than at present, the natural pattern of industrialization would have been to integrate small-scale power machinery into flexible manufacturing for local markets.

Alfred Chandler, in The Visible Hand, argued that the creation of the national railroad system made possible, first, national wholesale and retail markets, and then large manufacturing firms serving the national market. The existence of unified national markets served by large-scale manufacturers depended on a reliable, high-volume distribution system operating on a national level. The railroad and telegraph, “so essential to high-volume production and distribution,” were in Chandler’s view what made possible this steady flow of goods through the distribution pipeline: “The revolution in the processes of distribution and production rested in large part on the new transportation and communications infrastructure. Modern mass production and mass distribution depend on the speed, volume, and regularity in the movement of goods and messages made possible by the coming of the railroad, telegraph and steamship.”

The Tipping Point

The creation of a single national market, unified by a high-volume distribution system, was probably the tipping point between two possible industrial systems. As Mumford argued in Technics and Civilization, the main economic reason for large-scale production in the factory system was the need to economize on power from prime movers. Factories were filled with long rows of machines, all connected by belts to drive shafts from a single steam engine. The invention of the electric motor changed all this: A prime mover, appropriately scaled, could be built into each individual machine. As a result, it was possible to scale machinery to the flow of production and situate it close to the point of consumption.

With the introduction of electrical power, as described by Charles Sabel and Michael Piore in The Second Industrial Divide, there were two alternative possibilities for organizing production around the new electrical machinery: decentralized production for local markets, integrating general-purpose machinery into craft production and governed on a demand-pull basis with short production runs and frequent shifts between product lines; or centralized production using expensive, product-specific machinery in large batches on a supply-push basis. The first alternative was the one most naturally suited to the new possibilities offered by electrical power. But in fact what was chosen was the second alternative. The role of the State in creating a single national market, with artificially low distribution costs, was almost certainly what tipped the balance between them.

The railroads, themselves largely creatures of the State, in turn actively promoted the concentration of industry through their rate policies. Sabel and Piore argue that “the railroads’ policy of favoring their largest customers, through rebates” was a central factor in the rise of the large corporation. Once in place, the railroads—being a high fixed-cost industry—had “a tremendous incentive to use their capacity in a continuous, stable way. This incentive meant, in turn, that they had an interest in stabilizing the output of their principal customers—an interest that extended to protecting their customers from competitors who were served by other railroads. It is therefore not surprising that the railroads promoted merger schemes that had this effect, nor that they favored the resulting corporations or trusts with rebates.”

Reprising the Role

As new forms of transportation emerged, the government reprised its role, subsidizing both the national highway and civil aviation systems.

From its beginning the American automotive industry formed a “complex” with the petroleum industry and government highway projects. The “most powerful pressure group in Washington” (as a PBS documentary called it) began in June 1932, when GM president Alfred P. Sloan created the National Highway Users Conference, inviting oil and rubber firms to help GM bankroll a propaganda and lobbying effort that continues to this day.

Whatever the political motivation behind it, the economic effect of the interstate system should hardly be controversial. Virtually 100 percent of roadbed damage to highways is caused by heavy trucks. After repeated liberalization of maximum weight restrictions, far beyond the heaviest conceivable weight the interstate roadbeds were originally designed to support, fuel taxes fail miserably at capturing from big-rig operators the cost of pavement damage caused by higher axle loads. And truckers have been successful at scrapping weight-distance user charges in all but a few western states, where the push for repeal continues. So only about half the revenue of the highway trust fund comes from fees or fuel taxes on the trucking industry, and the rest is externalized on private automobiles.

This doesn’t even count the 20 percent of highway funding that’s still subsidized by general revenues, or the role of eminent domain in lowering the transaction costs involved in building new highways or expanding existing ones.

As for the civil aviation system, from the beginning it was a creature of the State. Its original physical infrastructure was built entirely with federal grants and tax-free municipal bonds. Professor Stephen Paul Dempsey of the University of Denver in 1992 estimated the replacement value of this infrastructure at $1 trillion. The federal government didn’t even start collecting user fees from airline passengers and freight shippers until 1971. Even with such user fees paid into the Airport and Airways Trust Fund, the system still required taxpayer subsidies of $3 billion to maintain the Federal Aviation Administration’s network of control towers, air traffic control centers, and tens of thousands of air traffic controllers.

Eminent domain also remains central to the building of new airports and expansion of existing airports, as it does with highways.

Subsidies to airport and air traffic control infrastructure are only part of the picture. Equally important was the direct role of the State in creating the heavy aircraft industry, whose jumbo jets revolutionized civil aviation after World War II. In Harry Truman and the War Scare of 1948, Frank Kofsky described the aircraft industry as spiraling into red ink after the end of the war and on the verge of bankruptcy when it was rescued by the Cold War (and more specifically Truman’s heavy bomber program). David Noble, in America by Design, made a convincing case that civilian jumbo jets were only profitable thanks to the government’s heavy bomber contracts; the production runs for the civilian market alone were too small to pay for the complex and expensive machinery. The 747 is essentially a spinoff of military production. The civil aviation system is, many times over, a creature of the State.

The State and the Corporation

It’s hard to avoid the conclusion that the dominant business model in the American economy, and the size of the prevailing corporate business unit, are direct results of such policies. A subsidy to any factor of production amounts to a subsidy of those firms whose business models rely most heavily on that factor, at the expense of those who depend on it the least. Subsidies to transportation, by keeping the cost of distribution artificially low, tend to lengthen supply and distribution chains. They make large corporations operating over wide market areas artificially competitive against smaller firms producing for local markets—not to mention big-box retailers with their warehouses-on-wheels distribution model.

Some consequentialists treat this as a justification for transportation subsidies: Subsidies are good because they make possible mass-production industry and large-scale distribution, which are (it is claimed) inherently more efficient (because of those magically unlimited “economies of scale,” of course).

Tibor Machan argued just the opposite in the February 1999 Freeman:

Some people will say that stringent protection of rights [against eminent domain] would lead to small airports, at best, and many constraints on construction. Of course—but what’s so wrong with that?

Perhaps the worst thing about modern industrial life has been the power of political authorities to grant special privileges to some enterprises to violate the rights of third parties whose permission would be too expensive to obtain. The need to obtain that permission would indeed seriously impede what most environmentalists see as rampant—indeed reckless—industrialization.

The system of private property rights . . . is the greatest moderator of human aspirations. . . . In short, people may reach goals they aren’t able to reach with their own resources only by convincing others, through arguments and fair exchanges, to cooperate.

In any case, the “efficiencies” resulting from subsidized centralization are entirely spurious. If the efficiencies of large-scale production were sufficient to compensate for increased distribution costs, it would not be necessary to shift a major portion of the latter to taxpayers to make the former profitable. If an economic activity is only profitable when a portion of the cost side of the ledger is concealed, and will not be undertaken when all costs are fully internalized by an economic actor, then it’s not really efficient. And when total distribution costs (including those currently shifted to the taxpayer) exceed mass-production industry’s ostensible savings in unit cost of production, the “efficiencies” of large-scale production are illusory.

Kevin A. Carson


Kevin A. Carson

Kevin Carson is a senior fellow of the Center for a Stateless Society and holds the Center’s Karl Hess Chair in Social Theory. He is a mutualist and individualist anarchist whose written work includes Studies in Mutualist Political Economy, Organization Theory: A Libertarian Perspective, and The Homebrew Industrial Revolution: A Low-Overhead Manifesto, all of which are freely available online. Carson has also written for such print publications as The Freeman.

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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From #MakeInIndia to Made in India

The #MakeInIndia week at Mumbai has been quite an eventful one. A lot has been learned here, and I have understood a lot about various things.

Barring an unfortunate incident involving a fire at the Maharashtra Night cultural program at Girgaum Chowpatty, the event has been a largely successful one.

Among the various exhibits and tidbits I managed to gather over the last two days while covering the event, here are some:

Amitabh Kant, Secretary of Industrial Policy and Promotion stressed on the need to not only Manufacture in India, but also Invent, Innovate and Design in India.

Scania and Volvo had got their new buses.

The Scania was the same bus that had been given to the Nagpur Mahanagar Parivahan Limited. It is India’s first bio-fuel bus, and it’s components are mostly sourced from India itself.

The Volvo was a Hybrid B7RLE/8400 model that NMMT had ordered. Of course, this does mean that BEST’s AC services are going to take a hit, but that is a different story altogether.

Ministers and industrialists spoke about road connectivity, rail connectivity, and inland water transport. While the former two were with regard to connecting ports, the latter was to decongest ports and roads. Now, if one can equate Passenger and Cargo traffic, you could come to the conclusion that a set-up for Freight should ideally work for a Set-up for Passengers as well, with minor modifications. This needs to be explored big time. The ship-building industry has a vast potential in India, and this needs to be explored big time by major cities, especially Mumbai, Surat, Chennai, Kolkata, and Mangalore. Connecting Ports to Hinterland with Rail, Road, and Inland Waterways will be a big boon for people living in the vicinity. It will encourage healthy competition [not the BEST vs NMMT kind, which is toxic] among different modes, and boost trade and productivity.

Amitabh Kant stressed on the need to manufacture more in India. While Services may form bulk of our economy, manufacturing is a must for it to be sustainable. This works in case of transport too. Buses need to be manufactured, trains need to be manufactured. With FDI is the rail sector, especially, high-speed rail, things are certainly set to change. He also mentioned that “Good quality Frugal Eningeering and Smartness must be combined to develop an Indian ability to manufacture”, which is true. One cannot directly apply global standards to India. India has different constraints, as well as requirements, and this must be taken care of.

Overall, I was part of several brilliant sessions, with various ministers, as well as Industrialists being part of there. I also, saw a lot of the exhibitions in vicinity.

Now, for other things:

The Fire

The fire that broke out at the Stage during the Maharashtra Night cultural programme at Girgaum Chowpatti was a rather unfortunate one. It was a stray firework and of course, the event company must be penalised. It was an unfortunate event and the ever-awesome Mumbai Fire Brigade rushed to the spot in no time and had the fire under control with no casualties. Chief Minister Devendra Fadnavis himself stayed back till the end of the rescue operation to ensure that all had been led to safety. What peeves me off is that while not only did political parties try and gain political mileage out of this, but certain people went to the extent of calling it “Fake In India”, mocking the entire event, and making fun of a calamity, by way of which, they insulted the work done by the Firemen, as well as the Organisers of the entire event [not just the Cultural Programme].

The Auto Strike

Auto-Walas chose the wrong week to strike. Auto drivers across the city decided to strike  on Monday 15th February in a protest against cab aggregators and illegal buses in the city as well as raised fares for issuing auto permits. However, BEST saved the day. BEST ran close to 90 extra services, ferrying 12 million people more on that day than the previous, and earning ₹5.2crore, which is ₹73lakh more than normal on that single day. However, BEST should have been running extra services to BKC, both Double-Deckers as well as special AC buses on that day, keeping the Make In India program in mind. Along with this, AC services should have been running on an hourly basis in and around BKC for the week. The strike didn’t impact NMMT or TMT much however, as it was within Mumbai city limits.

Other Observations

Nagpur Mahanagar Parivahan Limited [NMPL]'s Scania biofuel bus.
Nagpur Mahanagar Parivahan Limited [NMPL]’s Scania biofuel bus. Image copyright Srikanth Ramakrishnan, CC-BY-SA 4.0 International, available on the Wikimedia Commons.

The Scania Citybus that NMPL recieved in 2014 was present. The bus runs on an Ethanol based blend and is both eco-friendly as well as fuel efficient. The bus went to Nagpur because the Minister of Road Transport and Highways, Nitin Gadkari hails from Nagpur. One hopes that with MSRTC inducting Scanias into its fleet, BEST too would get this.

NMMT's Volvo Hybrid Bus.
NMMT’s Volvo Hybrid Bus. Image Copyright Srikanth Ramakrishnan, CC BY SA 4.0 International, available on the Wikimedia Commons.

The new Volvo Hybrid bus that has been launched on the 8400 platform was on display. NMMT has purchased 5 of these buses that run on Diesel-CNG and this is definitely going to take a toll on BEST.

An airconditioned minivan built by Force Motors.
An airconditioned minivan built by Force Motors. Image copyright Srikanth Ramakrishnan, CC BY SA 4.0 International, available on the Wikimedia Commons.

Force Motors had on display, a minivan. This minivan seemed very comfortable, and reasonable luxurious. Personally, I believe it can be used as a Feeder service to the Metro.

Bajaj Qute.
Bajaj Qute. Image copyright Srikanth Ramakrishnan, CC BY SA 4.0 International, available on the Wikimedia Commons.

Bajaj’s Quadricycle, the Qute was also present there. The Qute can actually be used as an alternative for auto-rickshaws, or maybe be the Kaali-Peeli vs Cool Cab type.

And, the bonus:

BEML 205 Ton Dumper.
BEML 205 Ton Dumper. Image copyright Srikanth Ramakrishnan, CC BY SA 4.0 International, available on the Wikimedia Commons.

The mammoth 205-ton dumper that Bharat Earth Movers Limited [BEML] built for mining purposes was also there.

Other observations and quotes:

  • In the food court, Falafels was using a Balaji Ticketing machine that Trimax uses for BEST and MSRTC.
  • Sadhguruji of the Isha Yoga Foundation was present, and made a few inspiring statements:
  1. True design unlocks better thinking, better insights, better products & better humans.
  2. Design should be used for promoting & leveraging towards sustainable growth for one and all.
  • Amitabh Kant of the Niti Aayog, too had a lot of motivating statements:
  1. Design is important in manufacturing & improving products. India will be providing solutions. to 6-7 billion people in the world with design.
  2. Challenge is to make urbanization sustainable. Compact cities, connectivity, sanitation, safety depends on design & innovation.
  3. India must be ready for smart, frugal innovation.

Overall, #MakeInIndia week was brilliant. It was a brilliant experience, and one that would last a lifetime.

Here is a Robot that was programmed to pick up objects:

Robotics #MakeInIndia

A video posted by Kaboom-wala (@rsrikanth05) on

 

For those interested:

I’m a freelance Digital Media Marketing consultant. I was hired to cover the #MakeInIndia week on Social Media, and prior to this, I was part of CII’s Partnership Summit in Visakhapatnam in January 2016. Should you want to engage with me and my associates, please drop in a line at  bestpedia[at]gmail[dot]com.

If you are sharing this post on Twitter, please do consider Retweeting the tweet below; it was RT’ed by Amitabh Kant himself.

 

Highlights of the Transport sector from #MakeInIndia week. Click To Tweet

 

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Travis takes the Bus

The Uber guy took a bus. Yes, that’s right.

Travis Kalanick, Founder and CEO of Uber, the ride-sharing app was in India recently, where he was present as an invitee to the Launch program of the Government of India’s Start-Up India program.

Post this event in Delhi, he made his way to Mumbai for an event at IIT-Bombay where he spoke about Entrepreneurship and Jugaad with Ronnie Screwvala, Founder and Former CEO of the UTV Group.

This is what Travis had to say, after he took a ride in a BEST bus.

Travis runs a company that is valued at $20billion. Never mind the fact that Uber has been banned in several countries, and several parts of India as well, for various reasons, from Regulatory issues, to Safety, to flouting Online Transaction Norms to apparent Monopolisation of the market.

All said and done, Uber has a significant presence in India. It has done better than its desi competition Ola Cabs, which has launched services such as Ola Cafe, Ola Market, etc to keep up with the competition. Uber has also eaten into a significant chunk of not only BESTs revenue, but the revenue of many Transcos across the globe.

When the CEO of a ridesharing company takes a bus, and talks of Jugaad, it means something. The impact of this, is reasonably significant.

I’m going to take this as a reminder that BMTC is getting a new Intelligent Transport System, which, from what is visible is a Trimax Project.

The new BMTC ITS will soon provide live data of buses on an app, similar to what BEST had proposed and what even NMMT had mentioned.

Travis came to India to talk at the launch Startup India. The need of the hour is for an Indian StartUp to set up a proper Research and Development firm in India with partnership or support of international players so that we can have a set of Intelligent Transit Systems in India which will br better suited for Indian projects, since each Transco [road, rail and water] in India has a different story.

We hope that Startup India results in something as bright as this post itself. Indian startups have the potential to do wonders in the field of transport. Trimax revolutionised the Ticketing scene across India, and went one step further in the field of Temple Management as well. The next few years are crucial as companies like Uber and Ola have been eating up into revenues of various Transcos and some of them, like BEST, PMPML, and BMTC are doing their bit to innovate to bring back the passengers and thus, give us more options on the road.

Remember, Travis took BEST, so let’s make BEST great again!

You can take an NMMT or a TMT, but if you’re within MCGM territory, go ahead, take a BEST. Bring out the BEST within you.

You could also book thru Hawala Travels.

When @travisK took a BEST bus! Click To Tweet

This blog post is inspired by the blogging marathon hosted on IndiBlogger for the launch of the #Fantastico Zica from Tata Motors. You can apply for a test drive of the hatchback Zica today.

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The changing face of Mumbai’s Taxis

Most of us associate a taxi in Mumbai with just one entity: The Black-and-Yellow Premier Padmini. I’m going to attempt to track Taxis in Bombay to their current scenario.

A black and yellow Premier Padmini Taxi on the Streets of Mumbai.
A black and yellow Premier Padmini Taxi on the Streets of Mumbai. Image copyright Ask27, CC-BY-SA 3.0, available on the Wikimedia Commons.

These cabs have been on the roads for decades and have remained the undisputed maharajas of South Bombay. They had competition from only one other entity; the Cool Cab. The Cool Cab is a better vehicle; often a Santro, Indica, or a WagonR. They are Blue in colour and air-conditioned. Naturally, their fares are higher.

A Blue Cool Cab on the Streets of Mumbai.
A Blue Cool Cab on the Streets of Mumbai. Image copyright Ask27, CC-BY-SA 4.0, available on the Wikimedia Commons.

Taxis first made their appearance in the city in 1911, to complement horse-drawn carriages. Traditionally, these taxis operate in the same way taxis operate across the world. The driver gets a Transport-Vehicle licence. Either the driver, or the owner buys the vehicle, approaches the Regional Transport Authority [RTA] for a commercial registration and a Taxicab permit. Then the vehicle is registered to one of the Unions operating under the jurisdiction of the Mumbai Metropolitan Regional Transport Authority [MMRTA].

Under Maharashtra regulations, a cab, like an auto cannot refuse a fare. As long as the Fare-Meter says ‘For Hire’ on it, the taxi driver has to take the commuter to their destination.

For years, these taxis [along with the blue counterparts] remained the primary for-hire service in the city, especially the South, where Autorickshaws are banned to reduce congestion.

The first step towards change, was in 2007 with the appearance of the Fullora Gold Taxi. The Fullora Foundation was an NGO that set up the Mumbai Gold Cab Company. Regular taxi owners were invited to join the company. The deal included the sale of their old Premier Padmini, getting ₹25,000 in hand, shares in the company, a new taxi as well as insurance. A move that the Mumbai Taximens Union vehemently opposed. Among the various reasons to oppose it, the Taxi Union stated that the plan would fail as they would not have a taxi stand and would operate round the clock. When launched, they had a fare lower than that of the standard Cool Cab. The fleet was composed of Esteems, Indigos and similar saloons.

A Fullora Gold Cab in Mumbai.
A Fullora Gold Cab in Mumbai. Image Copyright Mumbai Gold Cabs, All Rights Reserved.

The period witnessed a boom in private cab operations with other players such as Meru, and the all-women Priyadarshini and Forsche joining the bandwagon.

What did this mean for the Common Man in Bombay?

Private cabs can be called when needed. This eliminates the need to look out for a taxi stand. They are mostly monitored by GPS. This makes it easy to track the cab. What really made me happy is the advent of Women-only cabs. Forsche [now Viira] and Priyadarshini cabs. Giving women drivers opportunities, and of course, women passengers feel safer that way.

What happened then?

By 2010, the market was saturated with many call-taxi operators, many of whom had pan-India operations, such as Meru, Mega Cabs, Easy Cabs, TabCabs, et al. The regular black-and-yellow as well as Cool Cabs continue to operate today, as do the Gold Cabs. Somewhere in 2011 Ola Cabs appeared on the scene as a taxi aggregator service. This was followed by Uber and other services. Surprisingly, however, Mumbai was fifth on Uber’s list. Ola and its subsidiary TaxiForSure [TFS], later on tied up with autos to allow you to find an auto on the spot with the app. TFS also launched Tata Nanos in Bangalore, although these are yet to be seen on the streets of Mumbai. Soon, others such as Meru, and TabCab too, lanched their mobile apps.

The scenario today:

The scenario today is rather simple.  If you are in SoBo, you can hail a cab as easy as hailing an auto. Autos and Taxis, traditionally in Bombay have been honest, and rarely overcharge. However, if one is not carrying cash, then an Uber, or Ola would make sense, particularly due to the extremely low fares they charge from their users. Cabs, in the long run do help get user of private vehicles off the streets, but they are among the reasons why BEST is reducing its AC fleet. Its good to see technology being put to good use, for the benefit of the consumer, be it prepaid wallets and Mobile Apps for booking, or Prepaid RFID cards for buses.

 

 

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