Promoting Entrepreneurship in India's Auto-Rickshaw and Taxi Services - Akshay Mani

Promoting Entrepreneurship in India’s Auto-rickshaw and Taxi ServicesAkshay Mani, Program Manager, Integrated Urban Transport, EMBARQ India

Characterization of Intermediate Public Transport (IPT)

Why is it important to focus on IPT?

Significant Market Size

Significant Mode Shares

Policy Vision for the IPT Sector in India

Daily Commute Trips

Short distance

Non-motorized transport

Long distance

Public transport

IPT as feeder mode

Non-Commute Trips

Short distance

Non-motorized transport

Long distance

Public transport

IPT as feeder mode

IPT (door-to-door service)

What are the challenges?

Drivers

PassengersCity

EMBARQ India’s Activities

Research and Publications

Literature review

Role of Auto-rickshaws in sustainable transport

Case studies – Mumbai, Rajkot

City Demonstration

Projects

Rajkot partnership

Replicating in other cities

Policy/regulation

IPT policy

Permits and fares

Entrepreneurship

Identification of

opportunities

Supporting entrepreneurs

Creation of platforms for knowledge exchange

(blogs, events)

Entrepreneurship Opportunities

Vehicles and engines

Organized services

RidesharingAdvertising

Technology based

information and location services

Organized auto-rickshaw services

G-Auto

Ahmedabad

Rajkot

Autowale

Pune

Bangalore

Three Wheels United

Bangalore

Rickshawale

Mumbai

Radio Tuk Tuk,

Gurgaon

Need to understand why

they did not succeed. Policy

barriers, finance?

They are operating at a

small scale, and need to scale-up

to provide benefits

Organized auto-rickshaw services have been initiated in many cities

Implementation of Fleet auto-rickshaw Service in Rajkot

Implementation Process

Selection of type of service

Selection of partners

Development of service

characteristics

Development of implementation

schedule

Partnership agreement Launch

Scaling up of service

Monitoring and evaluation

Selection of Type of Fleet Service

• Non-profit organizational model• Drivers as members and operating under a

brand (such as G-Auto)• Vehicle ownership with drivers

Organizational Model

• Driver benefits (insurance, uniform)• Vehicle improvements• Administrative expenses (staff salaries, travel,

telephone, office)

Costs

• Grants• Service fees (stands, dial-a-rickshaw)• Advertising

Revenues

Selection of Key Service Characteristics

• Call-auto service at centralized number (24-hrs)

Dial-a-Rickshaw Service

• Metered auto-rickshaw service at railway station and ST bus stand

• Booth facility with receipts

Fleet Service at key transit hubs

• Meter-based fares based on government regulationsFare system

• Licensed and trained drivers, with uniformsDriver

characteristics

• Vehicles with environmental and safety certifications

Vehicle performance

Selection of Strategic Partner

• Tender notice inviting technical bids for fleet auto-rickshaw service – November 2011

Tender Notice – Invitation for Technical Bids

• Strategic partner (Nirmal Foundation) selected based on tender applications – December 2011

Selection of Strategic Partner

Partnership Agreement – May 2012

Rajkot Municipal

Corporation

EMBARQ India

Nirmal Foundatio

n

Partner roles and responsibilities

Partners Roles/Responsibilities

Rajkot Municipal Corporation (RMC)

• Initial funding support• Provision of office infrastructure• Public outreach• Stakeholder management

Strategic Partner (Nirmal Foundation)

• Implementation of fleet auto-rickshaw service, with minimum service requirements such as branded service, dial-a-rickshaw, meter-based fares, licensed drivers, social welfare to drivers, and minimum size of fleet (500 in 1 year)

EMBARQ India (technical partner/advisor)

• Technical advice to partners for addressing any challenges, and improving quality of service

• Monitoring and evaluation of service at frequent intervals

• Measuring and reporting the benefits of service to Rajkot and its citizens

Key Implementation Activities

•Public outreach to bring visibility for service to citizens through media channels

Public outreach

• Initial fleet of 50 auto-rickshaws launched on July 13th, 2012Launch of service

• Fleet size: scale-up fleet size to more than 500 within one year of operation

• Location: scale-up service to various locations across Rajkot (railway station, ST bus stand)

Scale-up of Service

• Documenting the benefits of fleet auto-rickshaw service to the citizens of Rajkot, to drivers, and Rajkot city

Documenting and monitoring benefits

Benefits of fleet organization

Brand image and public perception Elimination of refusals Formal meter-based fares Dial-a-rickshaw service Operational efficiencies – reduction in empty trips Reduction in operating and maintenance costs due to fleet management Higher earnings for drivers Environmental benefits due to operational efficiencies and cleaner vehicles

What can other cities learn from Rajkot City government can play a leadership role in

bringing reforms Stakeholder involvement and management is essential during the project Understanding the role of auto-rickshaws and key challenges upfront is important to identify reform initiatives Public private partnership (PPP) can be viable to bring reforms City government can bring visibility to the initiative through active public outreach, and representation at various forums

Key issues

Finance

Regulation

Institutional issues

Mentorship, business

development

Marketing and public awareness

Infrastructure