 "No clarity on Delhi govt's bus service scheme, says Shuttl")
Gurgaon-based start-up Shuttl has said it was awaiting policy clarity to apply for permission to operate in Delhi under the bus aggregator policy notified by the state government recently. The company, which has been drawn into to the controversy surrounding exit of Delhi transport minister Gopal Rai, has denied being part of any exclusive consultation with the state government.
Speaking to Business Standard, Amit Singh, co-founder, Shuttl, said unlike many other start-ups they are not offering a “vanity” product but are catering to the basic requirement of transportation for Indian cities. The Sequoia-backed start-up —the country’s largest bus-aggregating platform —began its operations in April 2015 and undertakes around 20,000 rides per day. Calling the allegation that his company influenced the policy framed by the Delhi government as completely “unnecessary”, he said foreign funds governed by Foreign Corrupt Practices Act are backing the company. “We have stricter norms than any other person running 10 buses in the city,” said Singh.
The Delhi government had in May announced a Premium Bus Service Scheme to encourage car users to leave their vehicles and use public transport being provided by app-based bus aggregators. The scheme, however, came under the scanner of Delhi government’s Anti-Corruption Branch (ACB) with Lt Governor Najeeb Jung refusing to give go-ahead to the scheme after BJP’s Delhi unit levelled allegations against Rai.
Singh said discussions on the scheme were carried out, with a number of companies like Ola Shuttl, Zipco and Mojo, twice before and after the first phase of road rationing scheme in Delhi. “We, like other bus aggregators, seek to solve the problems of office commute while also addressing issues related to congestion and pollution.”
The buses operate under contract carriage licence and are owned by drivers. Shuttl takes the bookings and makes a margin a portion of which it shares with the drivers. There is no separate licence currently required by these companies.
The proposed policy for premium bus service applies equally to all existing and potentially new players which may want to enter the segment, Singh said, adding that there was no grant or subsidy involved in it so the question of using exchequer’s money to favour any specific entity in a competitive space does not arise. The policy, in fact, is more “onerous” than what is provided in the Motor Vehicles Act requiring companies to have Wi-Fi, CCTV cameras and bank guarantee besides levying of stringent penalties. “We will have to make changes in our business to adapt to the policy. The policy could have helped in making calibrated decision and notifying everyone,” said Singh.
Speaking to Business Standard, Amit Singh, co-founder, Shuttl, said unlike many other start-ups they are not offering a “vanity” product but are catering to the basic requirement of transportation for Indian cities. The Sequoia-backed start-up —the country’s largest bus-aggregating platform —began its operations in April 2015 and undertakes around 20,000 rides per day. Calling the allegation that his company influenced the policy framed by the Delhi government as completely “unnecessary”, he said foreign funds governed by Foreign Corrupt Practices Act are backing the company. “We have stricter norms than any other person running 10 buses in the city,” said Singh.
The Delhi government had in May announced a Premium Bus Service Scheme to encourage car users to leave their vehicles and use public transport being provided by app-based bus aggregators. The scheme, however, came under the scanner of Delhi government’s Anti-Corruption Branch (ACB) with Lt Governor Najeeb Jung refusing to give go-ahead to the scheme after BJP’s Delhi unit levelled allegations against Rai.
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“We would like to emphasise that Shuttl has neither applied under the scheme nor has entered into any contract whatsoever with the government to offer premium bus services under the proposed policy. As the premium bus service scheme proposed by the Delhi Government is currently under investigation, we await further clarity from the Government,” said the company.
Singh said discussions on the scheme were carried out, with a number of companies like Ola Shuttl, Zipco and Mojo, twice before and after the first phase of road rationing scheme in Delhi. “We, like other bus aggregators, seek to solve the problems of office commute while also addressing issues related to congestion and pollution.”
The buses operate under contract carriage licence and are owned by drivers. Shuttl takes the bookings and makes a margin a portion of which it shares with the drivers. There is no separate licence currently required by these companies.
The proposed policy for premium bus service applies equally to all existing and potentially new players which may want to enter the segment, Singh said, adding that there was no grant or subsidy involved in it so the question of using exchequer’s money to favour any specific entity in a competitive space does not arise. The policy, in fact, is more “onerous” than what is provided in the Motor Vehicles Act requiring companies to have Wi-Fi, CCTV cameras and bank guarantee besides levying of stringent penalties. “We will have to make changes in our business to adapt to the policy. The policy could have helped in making calibrated decision and notifying everyone,” said Singh.