A dead-end for traditional taxi drivers? 

Thousands of taxi owners and drivers in the city are feeling a threat to their livelihood due to increasing operations of Ola and Yatragenie as they are dominating local travel business by offering cheaper rates.

Some taxi drivers are selling their vehicles and purchasing auto-rickshaws to eke out a livelihood as they think that it is a safe bet. Ola Cabs launched its operations in the city two years ago and emerged as a dominating force among the competitors.

The starting price of these cabs is Rs 79. In addition, they charge around Rs 400 from Vijayawada to the airport in Gannavaram. Whereas traditional taxi operators usually charge Rs 700.

Auto-rickshaws are also facing the heat to some extent. As per City Taxi Drivers Association secretary, N Chandrasekhar, there are around 3,000 taxis in the city.

He said that corporate cabs are attracting traditional taxi owners to join Ola Cabs by promising a high income every month. “They do not buy new cars but they are using local taxis to run the business,” he said.

“Corporate cabs are decreasing the charges by five to 10 per cent than traditional taxi owners. In fact, we have to bear expenditure, including bank EMIs and maintenance expenses. Most of us are breadwinners of our families,” he added. Further, he said that most taxi operators are not able to repay loans and are selling their vehicles as their income has drastically dropped.

Auto-rickshaw driver Satish, who owned two taxis one year ago, said he sold his cars due to lack of a steady income. He has now purchased a new auto-rickshaw for his livelihood. “Ola Cabs run cars for fares that are equivalent to the auto fares in the city. Taxi drivers are losing customers and have to wait for the long distance travellers. They get just one or two offers per week,” he said.

Dasi Krishnam Raju, owner of three cars said, “One year ago, I used to earn Rs 30,000 per month after spending all expenses. Now, I barely make Rs 5,000 to Rs 7,000 per month and I sold two cars as I was running in losses.” “It is difficult to run a family after deducting expenses for oil and maintenance,” he added.

Ambassador cars are confined to garages after Ola’s modern cabs started services in the city. Chandrashekar said they are contemplating to meet Transport Minister and request him to create a mechanism to check fares.

He alleged that corporate cabs did not follow the provisions of the Motor Vehicle Act and the transport department is just being a mute spectator. Vijayawada Deputy Transport Commissioner, E Meera Prasad, said that despite the Radio Cab Scheme in the State for price control and other issues, it is not being implemented.