For cab aggregator, hope floats despite financial struggles

Nagpur: The leaseholder of the cab aggregator services, M/s Preesha Tours and Travels, faced financial setbacks with two quarterly instalments of Rs3.68 lakh each nearly going to waste. Its third instalment, of a similar amount, seems unlikely to alter their financial standing significantly. Since its rollout in November last year, the service has faced various technical challenges, hindering its success.However, a glimmer of hope still floats for the company in the form of the e-auction policy.
The cab aggregator service lease, slated to expire at the year’s end, may receive a three-month extension if deemed appropriate by a competent authority, such as an officer of the rank of Divisional Railway Manager.
The e-auction policy clause regarding the ‘contract period’ states that while extensions are not normally permitted, the railways may consider ‘need-based extensions’ for up to three months, subject to approval. Such extensions hinge on factors like the railway’s requirements and the contractor’s performance, including timely payments and contract execution.
The clause emphasizes that the extension is at the discretion of the railways, not a right of the contractor. Additionally, the contractor’s consent is not mandatory, and performance during the extended period remains obligatory.
Deepak Sane, president of the Vidarbha App-Based Cab Union, advocates for extending the incumbent lease holder’s contract by at least six months due to substantial loss of time during the contract period due to various reasons. He said, “Challenges such as technical issues, resistance from auto-rickshaws, parking fee disputes, and last-minute parking site relocation significantly impacted business our operations.” Sane stated that the railways, knowing redevelopment plans, should have allocated a more visible parking space initially, which might have reduced the losses for the cab aggregator service.