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Promoting Entrepreneurship in India’s
Auto-rickshaw and Taxi Services
Akshay 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                   Non-Commute Trips


   Short          Long               Short                    Long
 distance       distance           distance                 distance


     Non-                           Non-motorized     Public          IPT (door-to-door
                   Public
   motorized                          transport     transport              service)
                 transport
   transport


                   IPT as feeder                      IPT as feeder
                       mode                               mode
What are the challenges?


                   Drivers




            City             Passengers
EMBARQ India’s Activities

                        City
 Research and
                    Demonstration      Policy/regulation   Entrepreneurship
  Publications
                      Projects


                                                              Identification
     Literature          Rajkot
                                            IPT policy              of
       review          partnership
                                                              opportunities


   Role of Auto-
    rickshaws in      Replicating in       Permits and         Supporting
    sustainable        other cities           fares           entrepreneurs
      transport


   Case studies –                                               Creation of
   Mumbai, Rajk                                                platforms for
        ot                                                      knowledge
                                                                exchange
                                                              (blogs, events)
Entrepreneurship Opportunities

                                Vehicles and
                                  engines




           Technology
              based
                                                       Organized
        information and
                                                        services
             location
             services




                  Advertising                  Ridesharing
Organized auto-rickshaw services have
been initiated in many cities
         They are
                                                                        Need to
      operating at a
                                                                   understand why
     small scale, and
                                                                     they did not
     need to scale-up            Organized auto-                   succeed. Policy
        to provide
         benefits
                                 rickshaw services                 barriers, finance?



                                     Three Wheels                      Radio Tuk
    G-Auto          Autowale                         Rickshawale
                                        United                       Tuk, Gurgaon



     Ahmedabad            Pune          Bangalore         Mumbai




        Rajkot          Bangalore
Implementation of Fleet auto-
rickshaw Service in Rajkot
Implementation Process


                                            Development of
       Selection of type    Selection of
                                                service
           of service        partners
                                            characteristics



       Development of
                            Partnership
       implementation                           Launch
                            agreement
          schedule




        Scaling up of      Monitoring and
           service           evaluation
Selection of Type of Fleet Service

                     •Non-profit organizational model
    Organizational   •Drivers as members and operating under a
        Model         brand (such as G-Auto)
                     •Vehicle ownership with drivers



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




                     •Grants
      Revenues       •Service fees (stands, dial-a-rickshaw)
                     •Advertising
Selection of Key Service Characteristics


        Dial-a-Rickshaw       •Call-auto service at centralized number
             Service           (24-hrs)


                              •Metered auto-rickshaw service at railway
       Fleet Service at key
                               station and ST bus stand
           transit hubs       •Booth facility with receipts


                              •Meter-based fares based on government
          Fare system          regulations


             Driver
                              •Licensed and trained drivers, with uniforms
         characteristics

            Vehicle           •Vehicles with environmental and safety
          performance          certifications
Selection of Strategic Partner


       Tender Notice –     • Tender notice inviting technical
         Invitation for      bids for fleet auto-rickshaw
        Technical Bids       service – November 2011




                           • Strategic partner (Nirmal
          Selection of       Foundation) selected based on
       Strategic Partner     tender applications – December
                             2011
Partnership Agreement – May 2012


                      Rajkot Municipal
                        Corporation




           Nirmal
                                         EMBARQ India
         Foundation
Partner roles and responsibilities

     Partners            Roles/Responsibilities

     Rajkot Municipal    •   Initial funding support
     Corporation (RMC)   •   Provision of office infrastructure
                         •   Public outreach
                         •   Stakeholder management
     Strategic Partner   •   Implementation of fleet auto-rickshaw service,
     (Nirmal                 with minimum service requirements such as
     Foundation)             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 advice to partners for addressing
     (technical              any challenges, and improving quality of
     partner/advisor)        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
      Public outreach
                            to citizens through media channels



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



                          •Fleet size: scale-up fleet size to more than 500
                           within one year of operation
    Scale-up of Service
                          •Location: scale-up service to various locations
                           across Rajkot (railway station, ST bus stand)


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




           Infrastructure                                Regulation




        Marketing and public
                                                      Institutional issues
            awareness




                               Mentorship, business
                                 development
Promoting Entrepreneurship in India's Auto-Rickshaw and Taxi Services - Akshay Mani

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

  • 1. Promoting Entrepreneurship in India’s Auto-rickshaw and Taxi Services Akshay Mani, Program Manager, Integrated Urban Transport, EMBARQ India
  • 2. Characterization of Intermediate Public Transport (IPT)
  • 3. Why is it important to focus on IPT?
  • 6. Policy Vision for the IPT Sector in India Daily Commute Trips Non-Commute Trips Short Long Short Long distance distance distance distance Non- Non-motorized Public IPT (door-to-door Public motorized transport transport service) transport transport IPT as feeder IPT as feeder mode mode
  • 7. What are the challenges? Drivers City Passengers
  • 8. EMBARQ India’s Activities City Research and Demonstration Policy/regulation Entrepreneurship Publications Projects Identification Literature Rajkot IPT policy of review partnership opportunities Role of Auto- rickshaws in Replicating in Permits and Supporting sustainable other cities fares entrepreneurs transport Case studies – Creation of Mumbai, Rajk platforms for ot knowledge exchange (blogs, events)
  • 9. Entrepreneurship Opportunities Vehicles and engines Technology based Organized information and services location services Advertising Ridesharing
  • 10. Organized auto-rickshaw services have been initiated in many cities They are Need to operating at a understand why small scale, and they did not need to scale-up Organized auto- succeed. Policy to provide benefits rickshaw services barriers, finance? Three Wheels Radio Tuk G-Auto Autowale Rickshawale United Tuk, Gurgaon Ahmedabad Pune Bangalore Mumbai Rajkot Bangalore
  • 11. Implementation of Fleet auto- rickshaw Service in Rajkot
  • 12. Implementation Process Development of Selection of type Selection of service of service partners characteristics Development of Partnership implementation Launch agreement schedule Scaling up of Monitoring and service evaluation
  • 13. Selection of Type of Fleet Service •Non-profit organizational model Organizational •Drivers as members and operating under a Model brand (such as G-Auto) •Vehicle ownership with drivers •Driver benefits (insurance, uniform) •Vehicle improvements Costs •Administrative expenses (staff salaries, travel, telephone, office) •Grants Revenues •Service fees (stands, dial-a-rickshaw) •Advertising
  • 14. Selection of Key Service Characteristics Dial-a-Rickshaw •Call-auto service at centralized number Service (24-hrs) •Metered auto-rickshaw service at railway Fleet Service at key station and ST bus stand transit hubs •Booth facility with receipts •Meter-based fares based on government Fare system regulations Driver •Licensed and trained drivers, with uniforms characteristics Vehicle •Vehicles with environmental and safety performance certifications
  • 15. Selection of Strategic Partner Tender Notice – • Tender notice inviting technical Invitation for bids for fleet auto-rickshaw Technical Bids service – November 2011 • Strategic partner (Nirmal Selection of Foundation) selected based on Strategic Partner tender applications – December 2011
  • 16. Partnership Agreement – May 2012 Rajkot Municipal Corporation Nirmal EMBARQ India Foundation
  • 17. Partner roles and responsibilities Partners Roles/Responsibilities Rajkot Municipal • Initial funding support Corporation (RMC) • Provision of office infrastructure • Public outreach • Stakeholder management Strategic Partner • Implementation of fleet auto-rickshaw service, (Nirmal with minimum service requirements such as Foundation) 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 advice to partners for addressing (technical any challenges, and improving quality of partner/advisor) service • Monitoring and evaluation of service at frequent intervals • Measuring and reporting the benefits of service to Rajkot and its citizens
  • 18. Key Implementation Activities • Public outreach to bring visibility for service Public outreach to citizens through media channels •Initial fleet of 50 auto-rickshaws launched on Launch of service July 13th, 2012 •Fleet size: scale-up fleet size to more than 500 within one year of operation Scale-up of Service •Location: scale-up service to various locations across Rajkot (railway station, ST bus stand) •Documenting the benefits of fleet auto- Documenting and rickshaw service to the citizens of Rajkot, to monitoring benefits drivers, and Rajkot city
  • 19.
  • 20.
  • 21. 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
  • 22. 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
  • 23. Key issues Finance Infrastructure Regulation Marketing and public Institutional issues awareness Mentorship, business development