Autofares in Chenni

2012_07_07
Back after a long time. Now retired and having one or two consulting gigs in IT.


Just yesterday, I got a mail from one of my friends asking me to subscribe to a petition to raise the fares for autorikshaws in Chennai. 


My first reaction was WTF?? aren't prices high enough? I thought about it and here's why.


Does anyone seriously doubt that whatever the fare agreed and mandated, the autorikshaw drivers will harass and squeeze the customers?

What are their compulsions?

1. Too many auto competing for too few passengers.
2. Rise of share auto - a boon to middle-class salaried commuters - has put more pressure on autorikshaws.
3. Most autorikshaw drivers hire their autorikshaws from a few bigger players (supposedly cops who are also moneylenders) and have to pay upto Rs.500/= per day as rent.
4. Drivers refuse to ply small distances. This is actually less beneficial for them.

So what are the solutions?

1. Do your math on petrol fares and distances. Even a Maruti car will give about 12 kms  per litre. Conservatively this works out to Rs.6 per kilometre. If we apply this to autos and add even 20% for maintenance overheads, it cant be more than Rs.7.20 per kilometre. Dont pay more.
2. Allow the number of autorikshaws to find it's optimum level by the laws of supply and demand.
3. Recognise the drivers' genuine problems (meeting the lenders demands) and have a separate body to process and sanction loans to genuine aspirants. In my view, this need not be a government initiative alone. I look to corporates and see the example of the introduction of the TataMagic 4 wheel share autos as an example. Initially the autos were sponsored and ran under the banner of two very popular labour unions in Chennai.

How about it? I would like a discussion and you can mail me at padmanabhan_anan@hotmail.com

OK