Radio Taxis in India to go up to 174,000

Chennai, October 28: | Updated: Oct 28 2007, 23:07pm hrs
Radio cab services are set to witness a boom in their bussiness, with the number of such taxis expected to swell from the present 2,000 to 174,000, taking the business to Rs 7,210 crore per year by 2010.

A study by Dare, a magazine for entrepreneurs from the Cybermedia group, has found that radio taxis will become common in five major cities and 12 smaller ones in the country by 2010.

At present, radio taxis exist in around 10 cities, most of them in Delhi.

By 2010, top five cities in the country will each have 20,000 cabs, whereas, about 6,000 vehicles each will ply in each of the 12 smaller cities, according to the study. This translates into deployment of 1,72,000 radio cabs across the country.

"Passengers' needs like safety, comfort and convenience have translated into a big business opportunity in the form of radio cabs," said Krishna Kumar, group Editor of Dare.

Kunal Lalani, Managing Director of Mega Group which obtained licence for operating "Megacabs" in 2002, said similar models in cities like Singapore and Dubai were studied before introducing the concept in India.

However, it was only in 2006 that the concept really took off in a big way after people realized the safety and convenience aspects of radio taxis.

The GPRS-GPS tracking system in the cab helps the company call centre inform the drivers about passenger availability and monitor the whereabouts of each cab in the fleet.