The Hindu Business Line : Business model enables drivers to own Innova

Hyderabad, March 4 Mr Hamid, a 30-year-old driver, who used to work for a cab company, has began to drive a GPS-fitted Innova, which he is going to own in four years.

He now gets 45 per cent of the income he generates everyday.

Mr Hamid is among 100 such drivers who became owners of Innovas, thanks to an innovative business model developed by three major travel services companies in the twin cities.

With a combined fleet of 1,500 cabs, Noori Travels, Premier and Cosy Cabs, have formed Dot Cabs India Private Ltd.

Revenue sharing

The new cab company is primarily aimed at offering services to the Rajiv Gandhi International Airport (RJIA) at Shamshabad.

“The model is going to work on a 55:45 ratio, in both spending and revenue sharing,” Mr Mirza Firasat Baig, Managing Director of the new company, said.

While the JV partners would take care of the financing part completely, the drivers would take care of the fuel costs and maintenance.

“They would be paid their share the same day.” After four years, when the repayment is completed, the drivers would become the owners.

“We will get them the clients, enable business through connecting them with GPS,” Mr Rizwan Hyder, Director (Finance) of Dot Cabs India, said.

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