To take on Uber and Ola, CPI(M) plans to turn cab aggregator

KPM Basheer Updated - January 23, 2018 at 01:20 AM.

Drivers affiliated to the party’s union CITU are now faced with loss of work

The CPI(M) says the service, which will go undergo a trial run in November, may not be able to offer cheap rides right away.

With cab aggregators like Uber, Ola and Meru weaning away customers from conventional taxis, the CPI(M) is planning to launch a call-taxi service on similar lines.

Faced with the huge threat to the jobs of the members of its taxi driver’s union from Uber, Ola and Meru in Kochi, the CPI(M) is planning to launch a call-tax service on the lines of these cab aggregators. Growing rapidly, these aggregators, with their smart service and low fares, have already taken a sizeable chunk of the customers away from the conventional taxis.

“We are planning the trial-run of the call-taxi service next month, after the local body elections are over,” P Rajeeve, former Rajya Sabha MP and the Ernakulam District Secretary of the CPI(M), told

BusinessLine . “We are in talks with all taxi-driver unions, not just those affiliated to CITU (the CPI(M) trade union).”

Rajeeve pointed out that there have been conflicts between conventional taxi drivers and those of the aggregators. “Because of the low fares and better, technology-based service of the aggregators, conventional drivers are losing customers, thus leading to conflicts,” he said. He said rides at lower fares were a marketing strategy of the aggregators. “Once they capture the market, they will jack up the fares,” he claimed. “We are educating the people, who are now charmed by the low fares, on the possibility of higher fares in the near future.”

He said that in the initial stage, the new call-taxi service would not be able to offer low fares.

“We will ask our drivers to strictly adhere to government-regulated fares and to not overcharge,” he said. “In the later stage, when our network has been expanded, we could definitely bring down the fares.”

Skill enhancement

Rajeeve said upgrading the skills set of the conventional taxi drivers in order to enable them to compete with those of the aggregators was a big challenge. “These days just being a good driver is not enough; a taxi driver needs to possess good communication skills and personal charms to provide better service to the passengers.” Drivers who will be part of the new call-taxi project would be given training in personal skills, inter-personal communication and some basic technology.

Meanwhile, clashes between the two groups of drivers are being reported frequently. Anil (not his real name), a Uber driver, said his friend’s cab was waylaid by drivers belonging to the CITU union and the passenger was forced to get off and look for another taxi. One of the cab’s tyres was deflated too. “Such harassment is common, but I am happy with Uber,” he said. “The company settles my accounts every Monday and what is due to me is transferred to my bank account on Tuesday morning.” He said Uber took 26 per cent of the fare as its share, but he was okay with it as he gets enough work.

Rajeeve said that if the pilot is found successful, the new taxi service would be extended across Kerala. The party would only be a facilitator, not an investor in the new project, he added.

Published on October 30, 2015 16:16