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Karnataka: Cabbies to launch app by mid-May

There will be no surcharge, cancellation charge nor commission cut from drivers.

Bengaluru: A consequence of drivers' protests against Ola and Uber is the launch a new cab service. Mr Kiran Gowda, state president, Karunada Rajya Taxi Owners and Drivers, who was part of the protests, said that he will launch 'Taxi for Ride' app in May.

"This will be a customer and driver-friendly service. There will be no surcharge, cancellation charge nor commission cut from drivers. We are not doing this for our benefit, but for that of drivers and the public. Public announcement and commercial operations will be around May 15," he said.

On the features of the app to stay ahead of competitors, he said, "We are trying to bring in battery-run electric vehicles which are eco-friendly. Every cab will have a camera and live tracking to ensure safety." He claimed that there will be no profit for the first six months and the initiative is for the benefit of drivers.

How will they cover management and operational expenses? "The model is mostly technical. We will have a very small office with less manpower. Advertisements on the cabs will be the extra earnings going for the management and operations," he said. He refused to reveal how exactly the company will sustain itself, without commission cut from the drivers.

Another competitor in the making is state JD(S) president H.D. Kumaraswamy's 'HDK Cabs'. Yearly maintenance, annual tax, insurance for the cab and life, medical insurance for drivers, 10% commission cut are some of the claims made by Mr Kumaraswamy. The sustenance of both these business models seems uncertain and their survival remains to be seen.

( Source : Deccan Chronicle. )
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