Radio cab cheaper than auto, says MICA study | News

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Published: Ahmedabad Mirror | April 15, 2016 | Niyati Rana

Survey says 65% respondents were unaware of fixed commuting charge in radio cabs

Usage of radio cab service may have changed the way of inter-city com muting for Amdavadis, but not many know about its cost-effectiveness. A study with the sample size of 110 respondents in four cities, including Ahmedabad has revealed that of 65 per cent of the respondents did not know about the fixed commuting charge in radio cabs and around 50 per cent were unaware of the per minute charge that adds to the total fare.

The study conducted on radio-cab users was done in four cities Mumbai, Delhi, Indore and Ahmedabad. Completed in mid-February this year, the study was conducted by Sonia Nahar, a PGP student and Prof Ashutosh Bhatt.

“Of the surveyed, most users preferred hiring a cab for travelling to known distances, long distances or going to railway station / airport where as an auto is usually hired for shorter distances. Also not a lot of people are aware of the booking charge for the cabs. Nearly 50 per cent of the respondents are aware of the per-minute charge for app-based radio cabs,“ Nahar stated. She said, it was after her experience of using rickshaw and radio cab for commuting to city that she thought of taking up the study. The study also compares the usage pattern of auto rickshaws with radio cabs. Around 45 per cent respondents still have this perception that auto is cheaper than a cab or has the same fare. “Price sensitivity analysis for app-based radio cabs was done using Price Sensitivity Meter, a technique by Peter van Westendorp,“ she said. “The price range is between Rs 9.1-Rs 10.8 with optimal price point as Rs 9.9 which the maximum respondents think that it is neither too expensive nor too inexpensive. 65% respondents believe that autos are cheaper or have the same fare as that of the app based radio cabs. But in reality, few app based radio cabs work out cheaper than an auto if one has to travel more than 10.5 km (break-even point),“ she said.

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