As the protests in Delhi by Ola and Uber drivers intensifies, Jugnoo plans to enter the cab-hailing space, with a pilot in Gurugram. Most of the drivers in the capital are facing problems like low revenues, insane work hours and most importantly, no incentives.
Jugnoo plans to keep both the consumer and the drivers happy with its new service. This is the perfect example of striking metal when it is hot. The company plans to sway most drivers from Uber and Ola to its platform, as it promises to deliver to their demands and create a market that is sustainable.
Jugnoo operates as an auto-aggregator primarily, with operations also in meal delivery, and hyperlocal grocery delivery. This is the first time the company is getting into taxi-aggregation, and considering the experience it has and the success it has seen over last few years, we can confidently say that Jugnoo will make a successful product.
However, one does need to remember that to maintain a balance in tariffs and customer satisfaction is a very difficult job. The existing tariffs have spoilt the customers so much, so it will take some effort to convince them to pay more, and the incentives to the drivers also have to be attractive.
“We at Jugnoo saw a vacuum in the taxi aggregation business. We analysed the issues faced by the taxi drivers off late and have come up with a strategy to provide cab 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 the gaps,” said Chinmay Agarwal, Co-Founder and COO – Jugnoo.
Cab-hailing is not a very profitable business right now, and it needs a lot of persuasion to fix prices that will benefit all the three parties involved. This is why, the prices to be decided by Jugnoo will be on the higher side, and the company plans to expand it to other cities subsequently.
Will this plan downgrade Uber and Ola?
The two largest cab-hailing companies in India are facing difficult times from both the Governments and the drivers. On the promise of monthly regular payments and incentives, both the companies has not been able to deliver.
This has led to a heated argument between the drivers and the companies, which ultimately spoils the experience of the riders. It is probably the best time for Jugnoo to enter and make a splash so that all the sides are satisfied with the proposals. Even if prices are a bit high, a good service can make up for it.
Jugnoo’s entry will definitely make a dent in the business that has been a duopoly now. Before Jugnoo gets aggressive, Uber and Ola should rethink their strategy and probably give in to the demands that have been genuinely made by the drivers.