City residents to see cheaper cab services from next month

CHENNAI:  Commuters in Chennai city will have an option of cheaper call taxis and autos without surge pricing by the first week of June, as a city-based startup company is all set to provide cab service.

With the brand name of ‘Gnapi - Book Ride’, Gnapi Technologies Private Limited, an IT startup company will launch a cab service, its CEO and founder M Vinoth Kumar told Express.

The new cab aggregator said their main aim was to give benefit to both riders and drivers with lesser commission, thereby collecting lower fares.

“Currently, the nearly-monopolised cab aggregator OLA and UBER take nearly 20 to 30 per cent commission for a ride from the driver and also collect several other hidden charges, including cancellation fee. We are planning to collect less than 10 per cent of commission from the cab drivers,” he said.  “We are planning to provide free Wi-Fi for riders as well,” he added.

The CEO said drivers will be paid 10 per cent of company profit, besides health insurance for them and their families. “Earnings of drivers will go up by 20 to 30 per cent a month,” he said. The company said so far about 600 call taxi and auto drivers have registered with it. Plans are afoot to expand the service with 5,000 cab drivers and autos by this yearend.

Though the startup company’s offers are too attractive, a few cab drivers are apprehensive as there are chances that the company will also increase their commission once they captured the market. J Ramanujam, president of Thozhargal Car Ottunargal Amaippu Sara Thozhirsangam, said when OLA and UBER launched service in Chennai in 2014, drivers received services for zero per cent commission.