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By Rajkamal Rao
Go back to "The first 90 days"
In most big cities, three-wheeler “Autorickshaws” continue to be a convenient and affordable way to travel short distances. Much like hailing a cab in New York, autos can be hailed from street corners or even from streets. They are plentiful and the late-model autos are fairly comfortable. Not all cities require auto drivers to have functioning meters, so your negotiation skills can come in handy. The rates change whenever the price of fuel changes (which is frequent). As of March 2012, the rate in Bangalore is INR 20 for the first 1.8 Km of travel. Each additional Km costs INR 11. A ten Km ride costs approx. INR 105. Rates go up by 50% at nights (i.e. after 9 PM) and service becomes sporadic and unreliable.
When it comes to the world of radio-taxis, India has come a long way in the last 15 years. Competition is intense and all kinds of taxi companies - from the local mom and pop to national chains - operate around the clock. Meru, the largest national operator has eclipsed Easy and Mega in most cities with an easy-to-use website, a 24 hour call center, defined policies, uniformed drivers and a stress on safety (electronic systems which politely warn the driver if exceeding posted speed limits). Taxi rates are reasonable by world standards. For the first 4 Kms, the charge is a flat INR 70 and each additional Km is charged at INR 17.50. A 10 Km ride should cost INR 175. Rates go up by only 10% at nights (after midnight). For night time travel, cabs are a much better option because they are safer and reliable to boot.
A surprising public transportation option in big cities in the last decade is the air conditioned Volvo or Tata/Marco Polo buses. These feature low floor-height entry, rear-engine design and raised seating in the back for a comfortable, noise-controlled ride especially for passengers in the front. FM Radio keeps passengers company. Buses ply popular routes and service is frequent. Outside of rush hour, buses run rather empty. These buses are typically funded under the Jawaharlal Nehru Urban Renewal Mission (JnNURM) program where 35% of the costs are paid by the Government of India, and 15% by the state government with the balance paid for by the city transportation department. In Bangalore, the rates are incredibly affordable - about INR 4.50 per KM - so that a 38 KM ride from the airport which might set you back INR 650 in a taxi will cost you INR 165.
All the above options will begin to tire after a few weeks and the returning Indian family will look to own a SUV/car. While most of the world’s manufacturers have brands that sell here, the top-most brand is the one with the greatest penetration - Maruti Suzuki. Now majority owned by Suzuki Japan, these cars have developed a loyal following as a reliable mainstay in the Indian automotive market. Maruti also promotes its True Value cars borrowing from the Certified Used/Pre-Owned business model in the US. Cars are subject to an elaborate inspection program and cannot be certified by dealers unless they meet quality standards set by Suzuki. Late model used cars can often be bought for a 20-40% discount off list prices. Much of the research can be performed online even before visiting the dealer. These cars move quickly and inventory is not always guaranteed. Another impressive competitor is Tata with its Nano entry-level subcompact which sells for under INR 2 Lakh. Tata sells a full range of passenger vehicles including hatchbacks, sedans, cross overs and SUVs. The Tata Safari SUV looks robust and competes well with Mahindra, Toyota and Mitsubishi models.
One vexing question for the returning Indian family is if it is prudent to drive in India. The truth is that driving in India is not that difficult if one is alert all the time. City speeds are incredibly low crawling at 15-20 Kms/hour during most hours of the day. What harm can possibly come to anyone in this setting other than fender benders? But fear persists and the natural option is to hire a driver.
Trusted drivers who are dedicated to the family are hard to find and churn is high. Drivers prefer corporate contracts because work hours are more predictable and when the boss is in the office, the driver can rest waiting in the car. In Bangalore, corporate drivers charge INR 12,000 - 15,000 per month. Domestic drivers, on the other hand, are frequently put to use by everyone in the family with little resting time - from the morning commute to school to after-school events late into the night. But competition is high and rates drop to about INR 10,000 a month.
Beware though of the quality of these drivers. In most major metros, the majority of vehicles (i.e. not two-wheelers) is operated by professional drivers - that is, people who drive for money. The demand for drivers is so high that many men from neighboring villages and towns have descended on to the big cities in the hopes of being hired as a driver. These men may have never been used to dense traffic where they came from. Or they may not even have had a strong driving record at best being used to riding bicycles. These drivers somehow manage to get a driver’s license and are ready to be hired by families.
Private cars driven by such drivers violate every rule of the Indian road. Cars snake in and out of traffic as though they are bicycles. Cars are routinely driven on the wrong side of the road in a traffic back up merely to get ahead. Stop lights are routinely jumped. Enforcement is so poor that a Darwinian system of “Survival of the fittest” rules. Committing your children to ride in cars operated by such drivers may be a scary proposition.
Go back to "The first 90 days"
In most big cities, three-wheeler “Autorickshaws” continue to be a convenient and affordable way to travel short distances. Much like hailing a cab in New York, autos can be hailed from street corners or even from streets. They are plentiful and the late-model autos are fairly comfortable. Not all cities require auto drivers to have functioning meters, so your negotiation skills can come in handy. The rates change whenever the price of fuel changes (which is frequent). As of March 2012, the rate in Bangalore is INR 20 for the first 1.8 Km of travel. Each additional Km costs INR 11. A ten Km ride costs approx. INR 105. Rates go up by 50% at nights (i.e. after 9 PM) and service becomes sporadic and unreliable.
When it comes to the world of radio-taxis, India has come a long way in the last 15 years. Competition is intense and all kinds of taxi companies - from the local mom and pop to national chains - operate around the clock. Meru, the largest national operator has eclipsed Easy and Mega in most cities with an easy-to-use website, a 24 hour call center, defined policies, uniformed drivers and a stress on safety (electronic systems which politely warn the driver if exceeding posted speed limits). Taxi rates are reasonable by world standards. For the first 4 Kms, the charge is a flat INR 70 and each additional Km is charged at INR 17.50. A 10 Km ride should cost INR 175. Rates go up by only 10% at nights (after midnight). For night time travel, cabs are a much better option because they are safer and reliable to boot.
A surprising public transportation option in big cities in the last decade is the air conditioned Volvo or Tata/Marco Polo buses. These feature low floor-height entry, rear-engine design and raised seating in the back for a comfortable, noise-controlled ride especially for passengers in the front. FM Radio keeps passengers company. Buses ply popular routes and service is frequent. Outside of rush hour, buses run rather empty. These buses are typically funded under the Jawaharlal Nehru Urban Renewal Mission (JnNURM) program where 35% of the costs are paid by the Government of India, and 15% by the state government with the balance paid for by the city transportation department. In Bangalore, the rates are incredibly affordable - about INR 4.50 per KM - so that a 38 KM ride from the airport which might set you back INR 650 in a taxi will cost you INR 165.
All the above options will begin to tire after a few weeks and the returning Indian family will look to own a SUV/car. While most of the world’s manufacturers have brands that sell here, the top-most brand is the one with the greatest penetration - Maruti Suzuki. Now majority owned by Suzuki Japan, these cars have developed a loyal following as a reliable mainstay in the Indian automotive market. Maruti also promotes its True Value cars borrowing from the Certified Used/Pre-Owned business model in the US. Cars are subject to an elaborate inspection program and cannot be certified by dealers unless they meet quality standards set by Suzuki. Late model used cars can often be bought for a 20-40% discount off list prices. Much of the research can be performed online even before visiting the dealer. These cars move quickly and inventory is not always guaranteed. Another impressive competitor is Tata with its Nano entry-level subcompact which sells for under INR 2 Lakh. Tata sells a full range of passenger vehicles including hatchbacks, sedans, cross overs and SUVs. The Tata Safari SUV looks robust and competes well with Mahindra, Toyota and Mitsubishi models.
One vexing question for the returning Indian family is if it is prudent to drive in India. The truth is that driving in India is not that difficult if one is alert all the time. City speeds are incredibly low crawling at 15-20 Kms/hour during most hours of the day. What harm can possibly come to anyone in this setting other than fender benders? But fear persists and the natural option is to hire a driver.
Trusted drivers who are dedicated to the family are hard to find and churn is high. Drivers prefer corporate contracts because work hours are more predictable and when the boss is in the office, the driver can rest waiting in the car. In Bangalore, corporate drivers charge INR 12,000 - 15,000 per month. Domestic drivers, on the other hand, are frequently put to use by everyone in the family with little resting time - from the morning commute to school to after-school events late into the night. But competition is high and rates drop to about INR 10,000 a month.
Beware though of the quality of these drivers. In most major metros, the majority of vehicles (i.e. not two-wheelers) is operated by professional drivers - that is, people who drive for money. The demand for drivers is so high that many men from neighboring villages and towns have descended on to the big cities in the hopes of being hired as a driver. These men may have never been used to dense traffic where they came from. Or they may not even have had a strong driving record at best being used to riding bicycles. These drivers somehow manage to get a driver’s license and are ready to be hired by families.
Private cars driven by such drivers violate every rule of the Indian road. Cars snake in and out of traffic as though they are bicycles. Cars are routinely driven on the wrong side of the road in a traffic back up merely to get ahead. Stop lights are routinely jumped. Enforcement is so poor that a Darwinian system of “Survival of the fittest” rules. Committing your children to ride in cars operated by such drivers may be a scary proposition.
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