In just two weeks, Ola and Uber will have a new competitor in Bengaluru.
The much-delayed Tygr app is set to finally launch its commercial operations by October 25 with 10,000 drivers on board, Tanveer Pasha, the former chairman of the Ola-Uber Taxi Drivers and Owners Association told TNM on Tuesday.
“The drivers’ application has been launched and the response has been good. So far, 8,000 drivers have applied and we are verifying their documents,” said Pasha. He now leads the drivers' association of those who left Ola and Uber for Tygr.
“We expect that drivers currently attached with existing cab aggregators will join us. We are giving better facilities to the drivers at a very small percentage of commission,” Pasha claims.
Why Tygr?
According to Pasha, more drivers will leave Ola and Uber because of the benefits offered by the new platform.
Tygr will claim a commission of 12% for every ride and in exchange will give life, accidental and vehicle insurance along with some regular servicing for the cab.
“Unlike Ola, Uber we have no such rules for minimum number of hours or rides. Drivers have total freedom, they choose how many hours they want to drive,” Pasha said.
But how about the passengers?
The highly competitive app hail taxi market is dominated by an unofficial duopoly of Uber and Ola with Meru Cabs and Ixigo battling for a distant third position.
According to market research firm
Kalagato, in June 2017, Ola and Uber managed to capture 44.2% and 50% of the market respectively. In September 2016, Ola had a market share of 54.8.7%, while Uber had 41.7%.
Pasha says, “Tygr’s business model is made keeping in mind the customers and drivers. Prices would be same 24x7 and the prices won’t change if you are going to the airport or elsewhere. There is no surge or peak pricing. Sedans will be charged Rs 14.50 per kilometre, while hatchbacks will cost Rs 12 per kilometre.”
No shared rides
However, the company won’t roll out cab sharing/ pool services as offered by Ola and Uber.
“These services are against the Motor Vehicle Act," alleges Pasha.
He claims it is more of a “business concept” rather than environment-friendly.
“If they were really keen on being environment-friendly, they should have thought about introducing electric cars or cabs running on CNG,” he says, adding that Tygr will come up with these offerings in the near future.
HD Kumaraswamy's role
The withdrawal of lucrative incentives by the two market leaders was met with a large number of driver-partners calling a strike in February-March. It was then that politician HD Kumaraswamy had stepped in and assured an alternate platform for the disgruntled cabbies.
Initially, the idea was to name the app HDK Cabs after the politician and it was to be launched on the Kannada New Year (March 28). However, the onboarding process for cabbies only started late September.
“After Bengaluru, we will start our operations in Mysuru and then Mangaluru. We plan to launch all over India in the coming years,” Pasha says.
In the beginning, Kumaraswamy had proposed that he will invest Rs 50 crore for the app. But Pasha now says, “Kumaraswamy is with us from the beginning. It was he who chalked out the policy which is a win-win for the drivers and customers. He only facilitated the meeting between the union and Savetur, a Kolkata-based startup."
Savetur has a contract with the union to form and run the app.
"He has assured us help in raising funds if needed in the future," Pasha says.
