I N URBAN MOBILITY PRESENTATION FOR NITI AAYOG 09 AUGUST 2018 - Cuts CCIER
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R E G U L AT I N G
I N N O V AT I O N
IN
URBAN MOBILITY
P R E S E N T AT I O N F O R N I T I A A Y O G
09 AUGUST 2018 1
INNOVATION BENEFITS CONSUMERS
2
BUT ADVERSELY IMPACTS INCUMBENTS
3NEED FOR REGULATORY CONVERGENCE
• Retaining benefits of innovation
• Addressing the risks coupled with innovation
• Taking into account concerns of incumbents
The Maharashtra City Taxi Rules, 2017 were issued with these objectives
4IS CONVERGENCE LIKELY?
Key questions:
• Are the objectives likely to be achieved?
• Is manner of achievement such that costs to
stakeholders are significantly outweighed by the
benefits?
Methodology:
• Survey of 1,000 (750 + 250) drivers, 1,000 riders,
and Key informant Interviews
• Understanding plausible changes in behaviour of
key stakeholders i.e. riders and drivers
• Analysing experience, perception, preference and
constructing possible scenarios
5KEY PROVISIONS OF THE RULES
6MINIMUM ENGINE CAPACITY OF 980CC
• Objective: Rider safety and comfort
• Survey: 46% users have used small taxis. 99% of such riders did not face any discomfort
250
Willingness to pay for taxi
B/Y Taxi comfort = INR 120 i.e.
200 notional inconvenience cost
13
25 25
150
100
Compact
Hatchback 155 155 155
Taxi
50
Hatchback 35
AC Bus
Taxi 0
AC Bus Compact Hatchback Taxi B/Y Taxi
Hatchback Taxi
Change in rider preference Change in rider cost
7FLEET COMPOSITION
• At least 30% fleet should have engine capacity of 1400 CC or more
• Objective: Preserving high end taxi market
• Survey: High end taxis comprise 5% market, sufficient to cater prevailing rider demand
75000 63450
58053
55652 55652
60000
19035
42776 2783 17416
45000 16696
2139
30000
52869
44415
40637 40637 38956
15000 7129
2139
4990
0
2017 Normal growth Scenario 1 Scenario 2 Scenario 3 Scenario 4
Taxis having engine capacity less than 1400 CC Taxis having engine capacity more than 1400 CC Total taxis linked with app based aggregators
Scenario Analysis for Impact Assessment
8PERMIT AND PERMIT FEE
• Need for City Permit with Fee of INR 2,61,000 as against existing permit costing INR 1,500.
• Objective: Level playing field between high end taxis. (Figures in INR)
Cost heads Existing cost New cost
Inter-City Cost 900000 900000
Taxi
Permit fees 1500 261000
Interest and
265783 342289
processing fee
Repair and
338880 338880
App maintenance
Linked Insurance and
City Taxi 162165 162165
taxes
Other
Additional tax 60000 7150
Fleet Taxi
profession Total cost 1728328 2011484
Per day cost 947.03 1102.18
Change in driver preference Change in driver daily fixed cost
9SNAPSHOT OF AGGREGATE IMPACT INR per day
Minimum
Rules/ Fleet Permit and Colour
Engine PSV badge Clean fuel
Stakeholders Composition Fee standardisation
Capacity
Consumers (actual) -39.89 -30.77 -25.33
Consumers
-76 -20.94 -80
(inconvenience)
B/Y taxi 122.23 27.87 128.67
Compact
-950 -950
Hatchback taxi
Hatchback taxi 114 707.08 1.26 -0.05 -31.24 -26.03
SUV taxi -2106.09 -7.75 -1.64 -1.37
A/C Bus 22.16 5.05 23.33
Permit/ Fee (Govt) 0.82 0.8 0.1
Aggregators -36.1 -4.62 -41.54
Net impact -843.6 -1421.6 -5.69 -944.82 -32.88 -27.4
Negative Negative Negative Negative Negative Negative
10KEY RECOMMENDATIONS
• Allow taxis with engine capacity of at least 600 CC to link with app based aggregators.
Explore alternatives like power to weight ratio to foster rider safety and comfort.
• Replace fleet composition with periodic market assessment to determine the need and
timing of regulatory prescription.
• Allow taxis with All India Tourist Permits to operate. Rationalise permit fee for all permits.
• For all drivers, requirement of Public Service Vehicle Badge can be replaced with references
and alternate authentication documents.
• Transition period to comply with clean fuel requirement should be rationalised. Consider
regulating emission standards in stead of type of fuel.
• Colour standardisation requirement for all taxis can be replaced with sticker of logo of
service provider.
• Regulatory Impact Assessment should be institutionalised in regulation making.
11THANK YOU
AMOL KULKARNI
CUTS INTERNATIONAL
amk@cuts.org
www.cuts-ccier.org
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