Competition among call taxi operators

The competition among call taxi operators is getting shriller in the city, as players who have existed for long are facing the heat from latest entrants with advanced technology infusion into service delivery.

Needless to say, several small-time operators find themselves getting snuffed out of the business. While the mobile tracking system and app-based booking has paved the way for cost-effective delivery of service for Ola, already existing players including Friends Track, and Fast Track have understandably been pushed to a situation of banking on personal connect with customers for repeat orders.

Friends Track and Fast Track that operate with moderate fleet strength of 80 to 90 cars each in the district, however, do not see immediate threat to their business model of operating taxis with owners as drivers, but admit they need to get prepared for erosion of bottomline if more hi-tech players enter the scene.

The going is indeed tough, according to Karikalan, an executive with Fast Track.

The silver lining for them is that the customers are growing conscious that the existing players do not indulge in surge pricing.

S. Karthick, General Manager, Friends Track Call Taxi, says tough competition is inevitable when players with strong brand names enter the scene.

There is, nevertheless, space for competition as there are regular customer bases for all operators owing to the steady volume of booking by corporates.

Scope for consolidation among smaller players to face tougher competitions ahead, though ideal, is bleak, the operators say, acknowledging that the ground was indeed slippery.

Source:http://www.thehindu.com/news/cities/Tiruchirapalli/competition-among-call-taxi-operators/article19362510.ece