"PAIN"

The following post is to show the reality of politicians. Don't get fooled by them. Don't lose your friendship with friends, stay open to all views. Question them but make an informed choice and vote.

Mr Asaduddin, in Jan 2013 asked to remove police for 15 mins and he would show what Muslims could do. So did Mr Yogi in 2007 where he said he would retaliate with 10 times the killings of a Hindu.

Congress did not give 10 min to AIMIM. Rahul Gandhi asks for 15 min in Parliament even when AIMIM is being not given time in Karnataka since Congress came to power. Owaisi is like Mr Stalin, Akhilesh Ji or Rahul Gandhi in leadership.

Mr Modi claimed that electricity reached all villages when the minister from MP claimed that target to reach all villages in his state was 8 months from then.

Mr Kejriwal said he had proof against Sheila Dixit but there was no action taken against him. Instead, he entered into an alliance with them.

The limit of corporate donation to political parties has been removed. Their identity can be kept a secret. They do not come under RTI. All political parties become united for their benefit. is it not obvious that any government will make policies in favour of the donors.

SP and BSP which were sworn opposites in the political arena are in an alliance so that they can save themselves from existential crises. BJP, on the other hand, has an alliance with JDU in Bihar but not in other states. It is all political convenience to ensure that they stay in power.

All governments that India has had good and bad. Some had more good and some had more bad. Nehru ji failed in foreign policy but promoted heavy industry and higher education in the country. Indira Gandhi imposed emergency but won the 1971 war. BJP has been working really well in the critical fields like infra and defence but has also started the Hindu politics like SP and Congress which did the same with Muslims. The election expenditure of 2009 Indian election was more than that of the 2008 US election. At least we are ahead of them somewhere.

Yes, we need to criticise the government but being critical of them forever is a sad thing to do. Saying that we don't need bullet train but improve 3rd class in railway, saying that we don't need statues, instead use that money for the poor is flawed. Everything is important and have their own advantages.

Please understand that nationality and secularism is not a test. You don't need to prove yourself to anybody. Saying Bharat Mata ki Jai is a choice. I agree with 'Bharat Mata ki Jai' but it should not be imposed on me. I should have the freedom of how I practice my Indian-ness and me being a Hindu and my friend should have a choice of how he practices his religion.

Swadeshi, nationalism and secularism have become the new brands in the country. While Kajaria is selling 'Desh ki mitti se bana tiles' Patanjali is selling 'Swadeshi apnao', Bajaj is selling Indian-ness through INS Vikrant.

With so many media channels joining the show and be on air for 24*7, we need to understand that they are no more the news agencies. They are are news manufacturing agencies. Media corporations have ownership in other media houses. Reliance has stakes in Network 18 for example. Will CNN-IBN or any other news channel owned by Network 18 bring out news which is not in the interest of Reliance?

What scares me is the extremism everywhere be it religion, news channels, social media, nationalism, secularism. Where are we heading to. I feel like I have been dragged into quicksand.

Cab Aggregators

Urban transport in dire need of some miracle. There is a lack of understanding of urban transportation and this coupled with limited data on various transport modes across different towns and cities with great variance in their population has led to ad-hoc planning to manage it which has further lead to chaos. Isolated planning of physical infrastructure and transportation planning                has become catalyst to  the chaos. Traffic congestion, pollution- both noise and air and lack of civic sense for driving along with insufficient and expensive parking have been common problems that a rider faces.

Tremendous pressure on public transportation coupled with poor planning and implementation has reduced the efficiency and effectiveness of the same to carry passengers. Public transportation has always been a prime concern in India due to poor physical infrastructure and support system. It is an easy observation for any bystander to see people travelling in crowded buses and suburban trains risking their lives by hanging out from the doors, travelling in crowded buses, haggling over auto fare and quarrelling with the auto driver to take you to the last mile and tampered meters is common in India. They are highly unreliable, inefficient, unsafe, do not follow the timetable, damaged vehicles, un-coordinated and not integrated. The drivers and conductors are not well trained and do not follow the traffic rules. Public transport moreover in India usually runs in losses; the prime reason being inefficiency- resulting in higher costs. Corruption too plays a major role in destroying this transportation system.

With over 125 billion population where out of every 1000 people aged above 15, 503 are employed and having an unemployment rate of 5%; there are enormous numbers of people travelling every day. World Bank report suggests that over 520,464.78 thousand people belong to the labour force in India . These facts suggest that there is a humungous number of people travelling regularly and there is a major need to solve the public woes for traveling. Vehicle ownership in India too has significantly increased to 178105732 in 2015. Due to this spike in the number of vehicle registration in India and continuous addition of people to the labour force there is dire need to improve the public transportation system in India which seems to be an overarched target.

Taxis have hence proved to be quite a boon for people in India. Failure of the governments to introduce a proper public transportation system created this highly potential market for taxis. Having operating in India in various forms such as Kaali-Peeli taxis, radio cabs, private taxis; they are largely unorganized. However, with the advent of technology cab services are coming into the fold of organized sector. Also, according to First Advance Estimates of National Income of Central Statics Office per capita income in India is estimated to be more than a lakh. This elucidates the increasing purchasing power of Indian citizens and the uplifting lifestyle which make it suitable for the rise of cab aggregators to be the perfect solution to resolve some of the issues for urban transportation.

With Uber and Ola, application based cab aggregators with maximum market share in their segment, have recently gained a lot of attention in India. As of 2016 the taxi business in India is worth 13 to 15 billion of which 90% is still in the unorganized sector. It is also expected that around half of this will move to apps which is also supported by the fact that around Rs. 4000 crore     business of car rentals went digital in the two years prior to 2016. With funding of more than 15 billion US dollars the two major taxi cab aggregators of India- Ola and Uber have transformed how people in India travel. There are various reasons why cab aggregators like Ola and Uber have been able to attract customers. Some of them are their availability of the cabs, safety features incorporated like the SOS button and location sharing through the mobile based application and transparent pricing model according to Khupse (2017).

Ola and Uber both are technology based aggregators and have similar business plans, however some of their offering do differ. Both of them work on the sharing principle and act as a mediator between the end consumer / rider and the drivers. Initially they were just cab aggregators, though we have seen that they have also included e-rickshaws, two-wheelers, auto and of recently cycles has also been included on the Ola mobile platform. In fact Uber has also come up with its own food delivery application called Uber Eat. In the Indian context there has been a fierce competition between the two transport technology companies. On the global level Uber is operation in 633 cities (Wikipedia- across 82 countries. While Ola operates only in India but is present in 102 cities  as against Uebr’s presence in 27 cities according to its blog. However, Ola is still the market leader in India with a market share of 65% as claimed by    Economic Times in its article published on May 1^st, 2017

Now that both the companies are having a face-off, cab aggregator in India are struggling to maintain and increase their market share in the taxi transportation business in India. Ola is seen to have been spending a lot in trying to stay the market leader but it has added to the financial woes and has suffered a consolidated loss of Rs. 2,313.66 crores, the growth rate is now leaning on Uber’s side with 50% as compared to OLA’s 44.25% as stated by Medium (KalaGato) which is also mentioned in an article published by Financial Express on July 27.

With the shift in the expectations of the investors from increase in valuation of companies to cash benefits it is now becoming difficult for the companies to maintain the confidence the investors have in them. These aggregators are now should look for additional and other benefits they can provide to their customers. Ola and Uber have already started doing so by diversifying their offerings. Ola, for an example is piloting ‘Ola Pedal’ in IIT Kanpur for booking bicycles just like you book cabs whereas Uber has joined the food ordering and delivery segment with Uber Eats.

Let us now look at other possible models for cab aggregators to increase their revenue and overall market share not only in the major metros and Tier I cities but the Tier II cities as well. Someone has rightly said that a business is a solution to a problem that exists in the market but with a difference. Cab aggregators can too follow this idea and ensure a sustainable growth in their market share and revenue in the tier II cities to add up the losses due to insufficient number of people riding them to ensure operational profitability. Following are some of the possible solutions:

1.  Using cab space effectively by placing advertisements:

Though Ola and Uber- the two major players in application based cab aggregators transportation solution service don’t own any physical asset but they can use the cabs registered with them in an effective way. One such usage of the physical asset can be using them for advertisement.

a.      The external space of the cars can be used for placing advertisements. There can be two ways by which the cab aggregators could do so.

One, by outsourcing the job to a professional outdoor advertising agency which operates at a national level or do the same at a state level. The aggregators must make sure that they do provide customized service for this because if they are able to convert the advertisements into sales for their customers they can charge higher than other advertising agencies.

b.      Even the interior space can be used for placing advertisements. One example could be placing magazines (like the one in the airplanes) and brochures behind the front row seats which should be visible even if the customer does not chose to take the brochure out to read it. However, it is also important to ensure that the cab space is not cluttered or the entire exercise will go in vain.

2. Advertisements to increase the number of trips:

Ola already has the physical infrastructure to implement this facility. Ola Play which allows the users to entertain themselves while on the move can be used to reduce the travel fare. The customers can be asked if they want to view advertisements for benefits. The benefits can be in many forms such as:

a.          They can receive instant discount on their travel fare if they agree to view advertisements while travelling. These advertisements will have to be customized according to the needs of the user which can be tracked by tie ups with Google and Facebook which are heavily invested in to data acquisition and analystics. Hence the conversion rate from viewing advertisements to sales will be high.

b.      Another way can be offering coupons for purchase from partner brands. This is another way where aggregators can charge from the partner brands as well and save on the loss due to discount on the previous method.

c.       Add travel miles to their account similar to the flying miles offered by the airline companies. This way it can also be ensured that customers remain loyal and can maintain their market share while trying to increase it.

d.      Discounts can be given in form of cash back to respective wallets like Ola play in case of Ola or the aggregators can partner with other wallet services like Paytm, Google’s Tez or Mobikwik and earn from this partnership as well. The cashbacks can be instant or delayed so that the money can be used by the company as short term finances. Delayed cashback will effectively nullify the cost of discount given if used as a short term source of finance.

In cab offerings where facility like Ola Play is not available like the micro, mini and auto services in Ola and all services of other cab aggregators the customer can agree to watch the advertisement on their smartphone itself. By doing so cab aggregators can ensure the above mentioned benefits for all without incurring extra cost on setting up the infrastructure required.

3. Serving as same day courier service:

With the purchasing habits of consumers changing from visiting the stores to getting their daily needs delivered to their door steps the need of logistics has increased multifold. Cab aggregators could be of use here as well. The existing network of cabs and bikes in their fold could help solving the same day courier service. There could be 3 ways to do so.

a.       One would follow the same mechanism of cab sharing facility. The courier box to be delivered would be treated as a passenger and the person sending or receiving the box could pay for the service. Since the cabs have a GPS facility too, the movement of the boxes could be monitored on a real time basis. However, some investment would be needed to ensure the safety of the courier and to cater special needs of the courier sender; for example, if the goods to be sent is fragile or brittle in nature. 

b.      Second one would work when a rider books for a non-sharing cab. In this case the consumer can be given an option that in case a courier service is requested in the same route would the rider be fine with letting aggregator fulfil the request. If the rider agrees he can be given some instant benefit and some additional offers as mentioned in point 2a to 2d if there is an actual request.The earnings here could actually increase for the cab aggregator if the cost of the benefits offered to the rider is less than the price charged for the courier service. The result of cheaper fares would be increased demand and thus increase the revenues too specially in the tier II cities where the demand for these cabs are in lesser numbers. 

c.       Third could be launching an exclusive bike courier service for same day couriers. The software might just need a little tweaking but the aggregators would need to sign up bikes on their platform which won’t be a difficult task as the two majors have already started doing it.

The same day courier service would also open a 2nd revenue stream for the aggregators in form of payments received from the stores and online platforms like BigBasket, Amazon, etc. Tie-ups could also be engaged with upcoming players which need this service but lack resources to set their logistic wing making a win-win situation for all.

4.      Utilize idle time of private vehicles:

Most of the office going people have their vehicles parked at their office places for atleast 8 hours. The vehicles are also parked in the garage mostly during night or when the users of the car are not in town. Times like these are being referred to as idle time of private vehicles. As it is vehicles are a cost and not an asset. The owners would be more than happy to make money by converting this cost to an asset by renting it out to cab aggregators. However, this is not allowed as per the laws of our nation as private vehicles cannot run on commercial basis. The aggregators can lobby for a change in policy and make the government allow to start such service. This would save the parking fee paid by the owners and would create an additional source of income for them as well.

5.  Introduce destination services:

Customized service can be offered to riders in case they are travelling to places like airports, railway stations and bus stations. Majority of outdoor travelling is either for business purpose or tourism which can be medical, pilgrimage, etc. Cab aggregators can act as a mediator between the service providers and the riders. Aggregators can charge commission from the service providers for providing them with business. The riders can also be given some benefits for choosing the services offered by partner service providers. Moreover, the experience of the riders can be made hassle free. For example, when a rider is travelling to a railway station, the rider can be assisted with his luggage right from the time he gets off the cab to the train and then from getting off the train to the hotel where he booked his accommodation. Customers these days are as it is looking for convenience and this could help the aggregators in maintaining customer loyalty. Tie ups with porters, cloak rooms and service providers like Oyo, Trivago could be of use here.

6.  Capitalize on Government’s push for e-vehicles:

The minister for road transport and highways Mr. Nitin Gadkari has cleared the electric vehicle policy which wants to make India a 100% electrically mobile nation by 2030. Cab aggregators could make use of this and push for waivers by helping to contribute to this plan by purchasing electric vehicles and help in creating the infrastructure like charging stations which could be used for free by the cab aggregator for helping construct the infra like the charging stations. They could also take advantage of the nascent stage of electric vehicles by asking for favorable prices for purchase and maintenance of the vehicles.

Uber has already entered into an exclusive contract with Mahindra and Mahindra for the same. While Ola is partnering with Nano. However, they are yet to capitalize in terms of benefits mentioned in this point.

7.Specialized services:

The government is yet again trying to change the perception of people towards handicapped by calling them differently abled. It is trying to encourage an environment where the world id friendlier to them not only in behavior but in terms of physical infrastructure as well. Cab aggregators could train their driver partners to learn to engage with differently abled people. A slight shift in the behavior and support could lead to creating a favorable perception of people towards their brands. A little modification in the cab could also help differently abled people hop in-hop out. For example, the seats could be modified in such a manner that it enables people on wheel chairs to board and deboard the cabs conveniently.

Note: Please email for reference.