 "Meru Cabs CEO Siddhartha Pahwa")
The state government hopes that the draft Maharashtra City Taxi Rules address concerns of consumers, black and yellow taxis, aggregators, radio taxi operators and drivers. In an interview with Sanjay Jog, Meru Cabs CEO Siddhartha Pahwa, who is also the secretary of the Association of Radio Taxis, says other states need to follow Maharashtra to frame such rules in the larger interest of all stake holders.
What are the implications of Maharashtra's draft rules for the various stakeholders?
The Radio Taxi Association has been seeking 'one country, one industry and one law' for all taxi operators and the black & yellow taxis for a very long time. This is a very progressive step by the Maharashtra government. This will allow all service providers such as kaali-peelis to embrace technology and focus on quality of service. Consumers will also be significantly benefited as they need various modes of transportation and if they are available on the same platform then it will be a huge convenience for them.
What is your comment on kaali-peeli and radio taxis being included in these rules? What does it mean especially for Meru?
Kaali-peelis being included in the aggregator platform shows that the state government wants to improve their quality of service. The government is not against them and wants them to be an integral part of the transport solution for the city. Meru welcomes this move and will embrace kaali-peelis on its platform. In fact, Meru has already developed a solution to integrate kaali-peeli taxis, and as soon as the rules are made official we will start integrating kaali-peelis on the Meru platform.
The rules have set a minimum and maximum fare-range for all players. What are the implication on taxi aggregators, especially on those that charge surge pricing during peak hours?
A price-band for fares is a must for all stakeholders, including consumers, drivers, aggregators and taxi players. If there is no maximum limit on fares, the aggregators can charge very high fares to make super profits. Every product in India has a maximum retail price and the same is required in the taxi space.
Secondly, the argument made by aggregators that the marketplace should decide fares is completely unfair and lopsided. In the taxi industry, currently there are two aggregators that decide the price and not the driver. Hence, it is not the driver but the aggregator which is deciding the price. So, it is not marketplace-driven pricing.
The government is ensuring that the maximum price is capped for the long-term benefit of passengers. They are aware that huge capital dumping is taking place currently so that disproportionate profits can be made later. In order to curb this, the government has come up with this rule.
Further, it is also important to control the discounts being offered to passengers with the intent to kill competition. The radio taxi association believes in healthy competition and thus offering discounts to consumers is must. These discounts are given to passengers to try new products and bring them into the category. However, if the intent of discounts is to eliminate competition so that monopoly can be established, then it will hurt the industry in the long term.
I also understand that in the short term the consumer might feel that prices are going up but in the long term it will benefit them the most. The cost of having one's own car is approximately Rs 30 per km. If the rates will be between Rs 15 to Rs 20 per km, it will continue to benefit the consumer financially and with better convenience.
Are there any rules in the draft which could hamper Meru's operations in Maharashtra?
Overall, the rules are very progressive and take into account the long-term interests of the industry and all the stakeholders. There are few clarification points and the regional transport authority will write to the department to seek the same. The government has to ensure strict compliance of the rules, and if they are violated then action should be taken against the aggregators according to the rules.
Do you think other states need to frame similar rules?
This is certainly the best set of rules we have seen, as compared to any other state. A clear thought process and efforts have gone in making these rules. We would certainly want other states to follow the same. In fact, the central government should adopt these rules and make it applicable in all states.
