Cab fares are set to rise by 50-60% over the next five years as drivers demand better earnings, according to Wise Travel India Cabs (WTicabs) founder and CEO Ashok Vashist. “If a ride costs Rs 100 today, it will rise to Rs 150-160 in five years,” he told FE.
India remains the cheapest ride-hailing market globally, but rising chauffeur costs will drive fare hikes. “Globally, chauffeur costs make up 51-59% of operational expenses. In India, it’s only 23-30%. As drivers push for better earnings, fares will rise, making self-drive rentals a more attractive alternative,” Vashist said.
Ride-hailing firms, having raised significant investor capital, will face pressure to turn profitable, he added. “Current pricing is unsustainable; companies will have to increase fares.”
WTicabs is already capitalising on this shift. In Dubai, it has built a fleet of 400 self-drive cars in nine months and plans to add 600 more by March 2026, expanding to Abu Dhabi and Ras Al Khaimah. “We’re bullish on self-drive. We’ve tested it in pockets before, but now the opportunity is ripe to go all in,” Vashist said. In India, the company is also gearing up to expand its self-drive business.
Despite the shift towards self-drive, WTicabs plans to expand its chauffeur-driven services in markets where self-drive is already popular. “Running chauffeur services requires strong manpower management, which we’ve mastered. We see potential in markets like the UK, Turkey, Germany, the US, and Southeast Asia,” Vashist said.
In India, WTicabs has also become a key fleet operator for Uber Black, managing 500 cars. Unlike Uber’s driver-owner model, WTicabs owns these vehicles, employing chauffeurs and sharing revenue with Uber. “Revenue-sharing terms are flexible as the service stabilises, but it’s a strong growth avenue for us,” he said.
WTiCabs reported revenues of Rs 409 crore in FY24, up from Rs 209 crore in FY23, with net profit rising to Rs 24.18 crore from Rs 10.29 crore. It expects 25-30% revenue growth in FY25, targeting a 1-1.5% net profit margin improvement.
