Amidst the growing agitation of drivers of some prominent cab aggregators, Jugnoo, the auto-rickshaw aggregator, on Sunday announced its foray into the taxi aggregation business. Jugnoo’s strategy to diversify its offerings and enter into another business vertical comes at a time when drivers are looking for an alternative to resolve their earnings and incentive issues, the company said in a press release. Jugnoo started as an auto rickshaw aggregator, which expanded into other hyper local segments like food and grocery delivery recently. The company had been contemplating entering the taxi aggregation business and was awaiting the right opportunity to launch the service.
Jugnoo is launching this service as a pilot in Gurugram and will soon expand to other cities. Commenting on the launch of taxi aggregation business, Chinmay Agarwal, co-founder and COO of Jugnoo, said: “We at Jugnoo saw a vacuum in the taxi aggregation business in India. We analysed the issues faced by taxi drivers off late and have come up with a strategy to provide taxi services at prices where drivers do not work at artificially lower rates than their costs. At the moment, the existing players have not been able to balance this and therefore, we intend to fill in the gaps.”
Drivers empanelled with cab aggregators are upset with the decreasing incentives and are demanding the taxi fares to be increased to make running their business viable. Launched in November 2014, Jugnoo is currently operating in 40 cities in India and has over 12,000 autos empanelled under the brand.
