Organised radio cab service provider Meru Cabs plans to start economy passenger service in Hyderabad in the next two months. It would roll out 250-300 small cars on a pilot basis under this and is evaluating prospects of a deal with car manufacturers for adding new fleet.
The company plans to target the mass market, which is predominantly held by unorganised players like auto-rickshaws and private taxi service providers. The service, first-of-kind for Meru, would be priced at a discount of 20 per cent in comparison with its existing fares.
Siddhartha Pahwa, chief executive officer of Meru, said they would be leveraging the company's healthy balance sheet and internal sources for funds. The company did a business of Rs 400-crore in the 2012-13 fiscal, he added.
As part of its expansion, it would step into new markets like Pune, Chandigarh, Chennai and Ahmedabad during the current fiscal. This would help it hike its share in the organised service, currently at 40 per cent, said Pahwa. Organised service providers currently have a 35-40 per cent market share.
The company is also looking to ramp up its driver-owner model, which aims to promote micro entrepreneurship among the bottom income households. It has so far rolled out 500 cabs under this model.
Prioritising women safety during travel, the company recently employed the 'Trip Tracker' facility, which makes use of GPRS technology to update the exact location details to the passenger's family members. In Hyderabad, the service has been used by 30,000 customers, said Pahwa.
On hiking minimum fare, Pahwa said they had been making representations to the Union and state governments against the backdrop of rising fuel expenses. "We expect a 10-15 per cent hike in the fare," he added.
