AC-cab operators threaten to withdraw services

As the Administration stands firm on its decision to reduce the fare of AC cabs,three operators have threatened to withdraw services if their demands are not met.

There are a total 110 AC cabs (47 by Mega Cabs,43 by Indus Taxi and 20 by Mico Cabs) being run by the three operators. When the services were initially launched in 2006,four companies had started operations. Recently,over the issue of fare reduction from Rs 15 per kilometre to Rs 13 per kilometre imposed by the Administration one of the operators,Easy Cab,withdrew its services owing to continued losses. Reeling under same pressure,other operators said they have no other option but to withdraw. We will also stop services if the Administration continues to overlook our representation. We are in a tough situation and need support from the Administration as we cannot afford to incur losses continuously, said Harpreet Singh Cheema,CEO and president,Indus Taxi Services.

The operators say the Administrations move is unjustified keeping in view the fact that such cabs run at Rs 15 in cities like Mumbai and Delhi and that too on CNG.

Cheema said the Administration had promised to provide CNG to the cabs,which it has not till now. All taxis either run on petrol or diesel. The Administration is now saying that it would start low-fare cabs,which it has failed to even after advertising several times for the same¿ there is hardly any interested party in such circumstances, said Cheema.

All the operators are incurring losses. Due to reduction in the number of total taxis,remaining operators will be unable to meet the demand of passengers. Already,most of the passengers are declined services due to the unavailability of the cabs, said Manish Dhariwal,director,Mega Cabs. The third operator,Mico Cabs,though on the brink of closure,is keen on refreshing business if the Administration is supportive. We already have lesser clientele and the Administrations decision of reducing fares would hit our business badly, said Vikas Malhotra,manager,Mico Cabs.

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