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Capitalizing on driver protests in Delhi, Jugnoo launches cab services

Update: In a conversation with MediaNama, Chinmay Agarwal COO of Jugnoo said that the company has 150 drivers on board and plans to increase it to 2,000 in the coming weeks. Agarwal, however, declined to give more details about driver incentives, minimum number of trips and pricing. When asked whether the company has a contract carriage permit, he said that they are in talks with the authorities and is looking for clarity as rules for cab aggregators are changing. He added that Jugnoo will be looking at car pooling at a later stage.

Earlier: Jugnoo is foraying into cab aggregation services and diversifying its business. Currently, the company aggregates autorickshaws, delivers meals, and has a hyperlocal grocery delivery service. Drivers from Ola and Uber are currently on strike in Delhi protesting the reduced incentives and low earnings, as indicated by this Hindustan Times report. Jugnoo mentioned that it is looking to “fill in the gaps” for drivers.

Jugnoo will be starting cab aggregation services in Gurugram and then expand to other cities later. It added that rates offered by Jugnoo cab services are expected to be higher than current operators but has not given specifics. Jugnoo also hasn’t mentioned how many cab drivers have signed up on their platform. MediaNama has written to the company for details and will update once we hear from them.

Jugnoo will also require a contract carriage permit to run a taxi business and will also have to look into stage carriage permits if it wants to run a car pooling service which has come under the authorities’ lens in Bangalore and Chennai.  Jugnoo is currently present in 40 cities of India and claims it does 40,000 daily transactions. It has over 12,000 autos empanelled at present.

Last month, Ola and Uber drivers went on strike in Bangalore and Hyderabad.

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Uber has been raising fares for customers in Delhi and Mumbai. In Mumbai,  Uber hiked its ‘ride time fare’ by 50 paise per minute on uberGO (hatchbacks) and uberX (Sedans) rides, and also increased base fare for uberX rides by Rs 5 per km.  Uber had earlier hiked fares in Delhi to Rs 1.5 per minute on all of its rides including uberGo, uberPOOL and uberX, bringing up fares by about 10-15% in the city. The company also hiked fares in Delhi for rides longer than 20 kms and changed the pricing in Pune to Rs 15 per kms after the first 15 kms.

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