Cab Operators Lure Drivers With Cash And Gifts

This Diwali, cab drivers in Delhi were offered gifts ranging from LCD TVs and iPhones to scholarship for their children as cab operators are wooing drivers. Since availability of cabs is a crucial factor in winning customers’ trust and the supply is not able to keep pace with increasing demand, keeping the drivers happy seems to the key.

"Nothing drives an entrepreneur more than rewards," said Anand Subramaniam, director for marketing communications at Olacabs, which has even helped drivers buy cars. "We have had occasions when 100 cars were sold in one day. Drivers with best ratings get LCD TVs and washing machines," he added.

Olacabs had received $210 million (Rs 1,290 crore) from Japan's Softbank last week.

Apart from Olacabs, other operators like Uber, Ola, Meru Cabs and TaxiForSure are also looking to expand themselves. In India, there are about 5.5 lakh commercial cabs for 10 large cities having a total population of about 6 crore.

"The biggest challenge for the industry is to balance demand and supply," said Jaspal Singh, Valoriser Consultants.