Taxi aggregators shift revenue model, but vehicle numbers a cause of worry

A zero-commission model relies on increasing numbers of taxis entering the market, but states' data shows that new taxis are growing at a slower rate than is required

A worrying trend on the number of taxis, as per state governments' records, could well prove to be the Achilles heel in the business model of taxi aggregators' - private or government-run - that are banking on the zero commission model.

 

The numbers, culled from various transport departments across states, show that the fleet of taxis in India may not be expanding fast enough to support taxi aggregators' ambitions. This has severe implications for the fixed-revenue subscription models that operators like Ola have recently adopted. The model was pioneered by newer entrants like Namma Yatri and Rapido, which are betting