This story is from August 20, 2014

Shifting gears

After Chasing Out A Mumbai Operator, One Taxi Association Is Launching An Online Service Next Month
Shifting gears
When Mumbai-based Ola cabs first made its foray into Goa in December 2013, flashing its swish radio communication, live GPS-tracking, mobile app-powered taxis, it was initially perceived by the industry as a chance to standardize and upgrade the tourist taxi sector in the state.
The company, as the largest aggregator of car rentals in the country operates over 7,000 taxis across 6 cities and announced plans to engage 250 taxis in Goa.
1x1 polls
According to a company spokesperson, it does not own a single car across India, but expected to “make a sizeable difference to the revenues earned by cab operators in Goa by improving efficiency, optimizing cab inventory and reducing idle time”.
What they did not expect was widespread agitations by taxi unions and to be given the boot by the state government, which had rolled out the red carpet for them during the Lusofonia Games. Having opened offices in the state without obtaining necessary permits from the transport department, the company had to pack up, but they have not left.
Operating, under the radar
Handling bookings via internet and at their Mumbai call centre, Ola continues to operate under the radar at a ‘flat rate’ much cheaper than those fixed by the transport department—minimum fare of Rs250 for the first 6km, and Rs15 per additional km. Unlike in other cities though, taxis registered with Ola do not bear the company logo, but they seem to have created a small but happy customer base with locals and tourists who swear by their metered rates and e-mail invoices.

Feigning ignorance about the fact that the company continues to operate in the state, transport officials concede that standardizing taxi services through a professionally-run programme is the need of the hour if Goa hopes to salvage its popularity as a tourist destination.
“The taxi associations here do not understand that they will remain the owners of their vehicles and will have to part with a very small percentage of their profits in return for regular work. National taxicab operators are only technology providers who help in coordination between taxi and passenger, ensure quality control and provide customers with economic and efficient service,” said a transport department officer.
‘Won’t work for others’
The primary reason Goa’s taxi owners seem to be opposing the entry of the national taxi brand is an unwillingness to “work for someone else”.
“From the time the first tourists started coming to Goa 40 years ago, it has been the locals who have catered to their needs, from transportation to accommodation. The common man of Goa has painstakingly built up the hospitality industry here. Why should we allow taxi companies from outside to come in now and control the trade? We are not just drivers but owners of taxis and we would like to be our own boss. Companies like Ola cabs are hoping to gobble up all the malai and leave just the thin milk for us,” says Vasudev Arlekar, representative of the North Goa Tourist Taxi Owners Association, which is all set to launch its online taxi booking service in September.
He points out that Ola cabs is offering fixed per kilometer rates even cheaper than those prescribed in the government gazette, to “grab the business of Goa taxi owners”. “We are aware that they are still operating, illegally in Goa, though they do not seem to have an office here. There are a few local cabbies who have joined their network clandestinely. We are looking out for these fellows and they will be thrashed once we find them,” he threatens.
‘Other ways to solve problems’
Father Maverick Fernandes, director of the Catholic church-backed Centre for Responsible Tourism, seems to agree. “There is no reason why the taxi federations cannot handle the job of taking bookings and coordinating between drivers and customers themselves, it is not a very high-tech task. Goa does not require a corporate taxi company as the state does not function like Mumbai or Delhi, taxis are not the most commonly used mode of transport by residents here and people do not use them for short distances,” he claims. “Why should small-time taxi owners have to compete with nationalized chain companies, or give them a share of their profits?” he asks. “There are other ways to solve problems and bring in discipline to the trade.”
When contacted, tourism minister Dilip Parulekar told TOI, “We are seized of the taxi issue. And we want to solve this issue once and for all. Fixing of digital meters would be one solution. Chief minister Manohar Parrikar has called a meeting of taxi operators on August 23. We intend to discuss all the issues pertaining to taxi operators... to thrash them out and come out with some solution.”
QUOTES
We are aware they (Ola cabs) are still operating, illegally in Goa, though they do not seem to have an office here. There are a few local cabbies who have joined their network clandestinely. We are looking out for these fellows and they will be thrashed once we find them
Vasudev Arlekar, representative, North Goa Tourist Taxi Owners Association
The taxi associations do not understand they will remain owners of their vehicles and will have to part with a very small percentage of profits in return for regular work. National taxicab operators are only technology providers who help in coordination between taxi and passenger, ensure quality control and provide customers with economic and efficient service
Official, transport department
We are seized of the taxi issue. And we want to solve this issue once and for all. Fixing of digital meter would be one solution. Chief minister Manohar Parrikar has called a meeting of taxi operators on August 23. We intend to discuss all the issues pertaining to taxi operators… thrash them out and come out with some solution
Dilip Parulekar, tourism minister
Travellers’ Travails
When in Goa, I have had both good and bad experiences with taxi drivers. The good experiences were restricted to the things you expect from a cabbie anywhere around the world—a vehicle in good condition, a courteous, sober driver who agreed on a reasonable rate (for Goa standards) and also helped me with my bags. There have however been more ‘bad experiences’, with many drivers demanding a higher fare after reaching the destination, and some even calling their friends to intimidate me into paying up
Chirantan Shah, Bangalore
When we visited Goa a few months ago, we were cheated by a taxi driver. He approached us outside the hotel and quoted a ‘package rate’ of Rs2,600 for 5 hours or 100km. Even though we thought it was steep, we accepted because he assured us that he would take us shopping, sightseeing and to the beaches. He however failed to tell us that most shops in Panaji are shut on Sunday, and he drove around aimlessly for a while, before taking us to several overpriced shops selling antiques and Kashmiri stoles, even though we told him we were not interested in such things. We realized later that he only took us around Panaji, to the church, jetty and a city beach—definitely not value for money
Martina Roberts, Chennai
------
Readers Weigh In
It’s been many days now that I’ve been reading news articles about taxis and over-exorbitant fares. Every trade has its own principles. I have a fleet of 10 taxis and my colleague has a fleet of six. This business isn’t lucrative anymore, it is very fragile, but it is profitable when it is on in full swing.
Taxi operators require the following to be successful: A driver who can speak good English and Hindi (like a guide); he has to be gentle with gentle customers and tough with customers who cheat and ask unexpected questions; he needs to be patient, as he has to deal with different types of customers, most of who are irritating; he needs good connectivity, should be available 24x7, and, the taxi owner, if his drivers try to cheat customers, has to give justice to his clients so as not to lose them.
The public does not understand these factors of our business: Each taxi/driver is from a particular area/place and cannot wander looking for customers; Goa is not a metropolitan place—it doesn’t have the volume of customers and the cost of living here is very high; there’s a high risk of road accidents and damage to vehicles and extra money is needed to keep the car looking neat; taxi insurance is higher as it is commercial, plus there are the costs of permits, tourism tax, vehicle fitness, vehicle maintenance, food, laundry, dry run km (reporting from garage to pick-up point), standing AC (running of aircon when in idle mode), daily car washing and cleaning; in case of breakdowns or accidents, the owner has to make alternative arrangements at his own cost; sometimes guests book and then cancel at the last minute but there are no cancellation charges; at times guests want day-time rates in the night and when we refuse we get a bad name; taxis differ in terms of seats, make and cost of vehicle, but guests want uniform rates for all vehicles.
The real scenario: Tourists are equally bullying and abusive and even take drivers for a ride, they also do not always pay the parking charges at tourist spots; taxi stands are protected by drivers because they are from that area and it is their place of work, it is difficult for a new entrant to find a place as there is a queue system for sharing business.
While metropolitan cities see business in volume because of their population size, in Goa we get business for only 6-7 months, which is also inconsistent, and half of which is taken by private vehicle operators who enjoy the protection of law enforcers. The goondagiri by taxi drivers outside starred South Goa hotels—we all know who supports them—gives other taxi drivers in the state a bad name.
As far as competition goes, just because one taxi has given a concessional rate does not mean every taxi should do the same. Each trip is unique with customers’ requirements varying every minute and the driver takes the final call conscientiously. Why the demand for a fixed rate from taxis, when there’s no such demand from rent-a-bike operators, hotels, or tour operators who charge their foreign clients exorbitantly for outstation or even sightseeing trips. And why the comparison between Mumbai and Goa taxi rates? The cost of living in Goa is higher.
The story of Ola cabs: I was perhaps the first in Goa to give them my car services, but as soon as I came to know their modus operandi I discontinued. They want to capture the market by giving lesser rates to customers by getting all taxis under their umbrella. They offer travel services at one-way cost. In comparison, a tourist can get lot better rates. For their plan to work they need to ensure maximum earnings for each taxi service provider, guarantee payments and all taxis have to be interconnected. Is this possible? They are still operating in Goa by making use of debt-ridden taxi owners and those taxi owners who don’t know how to get business from the market. They are here to spoil the market forces.
The reason why customers think they are being overcharged is because sometimes they take taxis whose drivers try to make an extra buck by taking on passengers after dropping off the client they have already charged a two-way fare to. The customer who has experienced such a taxi then thinks the two-way charge is steep. It gives all of us a bad name. Also, a four-seat car charges from Calangute to the airport is Rs1,000-1,200, it is definitely expensive for a single traveller, who should look for alternatives.
First control and implement: The taxi drivers of South Goa-starred hotels; private vehicle owners who ply their vehicles as taxis and self-drive vehicles; taxi drivers at the airport and railway stations who don’t know the trade because they are not educated, trained and streamlined.
Foreigners should be stopped from charging exorbitant rates to foreign tourists or tour operators should stop providing these services unless they are willing to help us perform better. Each type of vehicle segment should have separate rates because they are meant for different applications. These rates should be in the form of a (government) stamped document and should be laminated.
Today hundreds of drivers have no badge, don’t know Goan culture and history, and have entered the field only to make money.
Goa is becoming like the rest of India, with no proper control, no law enforcers, no professionalism. In my experience, travelling in Goa is now becoming a mess.
Anthony de Souza, Calangute
author
About the Author
Anisha Francis

Anisha Francis has been a medical journalist for five years and has worked in Chennai and Goa. She is a dog and a cat person, and also enjoys long walks, slapstick comedy and kitchen experiments

End of Article
FOLLOW US ON SOCIAL MEDIA