Tamil Nadu-based start-up Oor Cabs, an aggregator, is introducing a new form of cab hiring system that it says would help drivers earn more money and help customers too get value for their money.
Launching from Coimbatore, Oor Cabs introduces auto services from today and plans to add cab services in three months. In a first of its kind, promoters say customers can book via WhatsApp and for every booking they would get a choice of three vehicles and a varying tariff to choose from.
The company says instead of thrusting a fixed tariff, its partner drivers are given a tariff range and they are free to fix a price within the range either on the lower side or higher range. Customers are to pay the money directly to the driver.
One significant change is the aggregator would not collect any commission from drivers. "This way the income of drivers will rise by at least thirty percent if they shift to us from Ola or Uber," says Mr Maria Antony Issac, Founder of Oor Cabs. He adds, "Our system ensures minimum profit and reasonable income for drivers and it safeguards customers from predatory pricing."
Around 200 autos have already signed up in Coimbatore. The city has a fleet of 12,000.
"We expect around 500 to join us soon after we launch and 4,000 in two months " says Mr Issac.
"The verification takes some time. We don't compromise. Only if they produce all papers we rope them in," he adds.
AdvertisementOor Cabs collect a fee from customers for every ride between a minimum of nine rupees and a maximum of ten percent, its only source of income.
The start-up also promises a slew of welfare measures for drivers.
AdvertisementEvery driver, says the company, will be covered with a ten lakh rupee life insurance against accidents. A canteen would provide subsidised food. There would also be a canteen for supply of food and a store for supply of groceries at a fair price. Drivers would also be eligible for earned leave.
"We would fund this with our CSR diverting 10% of our revenue for this and once we grow in volume this would be possible," explains Mr Issac.
AdvertisementThe company plans to gradually expand to smaller towns where bargaining is the norm, before expanding to Chennai.
"We expect around 500 autos to sign up before the launch. It should cross 4000 in two months. We see a good response. We would then gradually expand to other smaller towns which have bargaining system in place now for hiring cabs/autos," Mr Issac added.
The bootstrapped start-up has raised 1.5 crore from friends and relatives.
A computer professional with an MCA, a few years ago Mr Issac had moved the Competition Commision of India against predatory pricing and "exploitative practices". The idea for this model had its beginning there.
