At the Mumbai Airport you have a choice of taking a black and yellow cab, a blue cab, a Meru or a Tab, or of course an Ola or Uber. At the location that I stay I do not have the choice of taking an auto, for Mumbaikars that is also a choice.

All are at different price-points, convenience points, and we choose them as a matter of habit.

If you live at a slightly far away kinda distance, Meru, Tab Cab, Easy Cab, and the blue taxi are all similarly priced so it is not so much of a pricing issue as it is a habit issue. Meru for me was a old habit and I have gone to blue, black and yellow, but have never taken a Tab Cab on political considerations – of who owns Tab.

But the deterioration in the Meru services is to be seen to be believed. There was a time when people chose Meru and we would have to queue up for it. Nowadays there seems to be greater demand for Tab Cab. I took a Meru yesterday and saw some 15 Tab Cabs go by before my driver decided to descend (upper deck parking). He saved the Rs. 110 because I spotted him quickly and we were out in a flash. I said so you saved Rs. 110. He said yes. How it impacts our pricing I have no clue. I asked him ‘Why is Meru collecting Rs. 80 while booking a cab’. He said ‘You should ask the person who asked you to pay’. Good reply. I will not get a chance because I will not use Meru again.

Then in the afternoon I had to go out. Ola! it was – one driver’s name and number flashed. As usual Ola said ‘Our driver has reached early’ and in 4 minutes got a message “thanks for using Ola…your bill is Rs. 104”. Amazing I was yet to see the driver – and he was not picking up the call. So tried Ola again..no taxis were available …well for some time then suddenly one was available at 2x. I would have found it cheaper to take a blue taxi – they do not loot double the rate anyway. So no Ola. No Uber taxis were available.

Took a blue taxi. He said as per meter +70 for toll (why both ways, well, as per meter both ways). He had a huge crib against Ola and Uber being rich people wanting to kill people like him (honestly I do believe he is right). He was asking me ‘how can one run a taxi at Rs. 6 per km’. It costs me more than that for running and maintaining a cab, so Rs. 6 is predatory pricing and it is not good, and in the longer run the taxi fellows will also realise that he was saying. Hmm.

I did not feel like giving him a lecture on how the cost / revenue in any business is a function of – quality of asset, capacity utilisation, fuel efficiency, – when I was talking to an Ola driver he was telling me how he is busy from 4am till about 10am, then goes home for lunch sleeps and then starts at 3pm till 10pm. From 10pm to 3am his brother drives..and they do not refuse any call. They were wondering whether to buy another phone and tie up with Uber….IMAGINE the capacity utilisation. But yes, the taxi driver is the smallest level entrepreneur and I love that his tribe succeed. Looks like one more ‘last domain’ of the romantic is going the corporate way. Not good for a free market, but the black and yellow cab….RIP.

Meru, Tab cab…..will follow soon?

  1. how did you fix the ola ghost bill??? or was it just fyi with no money lost?
    one key advantage i found with meru is planned trips – especially for trips to office or airport in an unfamiliar town. uber does not support that, and ola has ‘later’ option, but perhaps doesn’t want to encourage it.
    i do think that 6rs/km is predatory pricing. it would be good if someone can actually show how someone can make money with ‘new enough’ cars to make the economics worthwhile.

  2. I will let you know how the ghost bill works. This happened in Chennai. Via Ola, We traveled from Teynampet (mount Road) to Triplicane marina beach. The bill was Rs.150+ . while driving the driver requested us to book another ola cab just when we reach Marina beach and he would accept and drive till his home near 1000 lights (mt road). Reason is if he completes another Rs.100+ drive there is some point system / incentive system by which he will get Rs.400. The reason for your ghost bill would be similiar to this. your ola driver would have accepted and ‘shown’ that he had traveled and also get some points/ incentive / bonus.

  3. Meru is the most reliable, albeit a bit costly service for cross city travelling. Kaali-peeli is best only for short hops.

    Regarding ghost bills, dont they track the vehicles via GPS??

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