Khaali-peeli: Few want to drive yellow-top taxis

The boom in cab aggregator services is pushing the kaali-peeli off the streets of Mumbai. Even two months after the state transport department lifted the freeze on handing out fresh taxi permits, barely 80 people have applied at the Regional Transport Office (RTOs) to buy permits to register new taxis.

On June 17 earlier this year, the government started issuing fresh permits for black-and-yellow taxis at the metropolis's four RTOs at Tardeo, Wadala, Andheri and Borivali, relaxing a two-decade-old cap imposed in 1997.

The move backfired. While the restrictions were in place, the RTOs were flooded with thousands of applications for permits. But in the two months that followed the lifting of the cap, only 25 new permits have been cleared at Tardeo RTO and 55 at Wadala RTO. Nobody has approached the Andheri and Borivali RTOs with applications. Each permit costs Rs 25,000.

"It is a fact that we have hardly seen anyone come to apply for black-and-yellow taxi permits in the past eight-odd weeks. It is possible that under the current circumstances, surviving after investing in a taxi is difficult," said an RTO official who did not wish to be named.

In 1997, when the ceiling on permits was implemented, there were 63,200 black-and-yellow taxis in the city. The figure slumped to 42,000 around four years ago. Now, the fleet has shrunk to 37,000.

There are nearly 4,000 blue-and-silver Cool Cabs which charge 25 per cent over the regular fare. On the other hand, for AC rides in aggregator cabs, the fares are 12-15 per cent more than the regular black-and-yellow taxis.

"There are at least 1.25 lakh T-permit vehicles plying for Uber and Ola across the Mumbai Metropolitan Region," said another RTO official. There are over 40,000 vehicles registered as mobile aggregators at the four RTOs in Mumbai. These are the ones which mainly ply as Uber and Ola cabs.

The authorities claim that the prospect of citywide Metro connectivity in the near future, coupled with the success of app-based aggregators like Uber and Ola, has drastically curtailed demand for traditional cabs, especially in case of long-distance journeys, which people prefer to make in the app-based AC cars.

"The government has allowed drivers of black-and-yellow taxis to charge 20 per cent over the end fare if passengers use air-conditioning. But then, over the years, it seems people are tired of constant refusals by the drivers and over-charging, which are also responsible for the fall in their demand," said another RTO official.

Besides the Metro, the suburban railways is also looking to expand its network, offering more connectivity thus dissuading many prospective drivers to apply for T-permits.

Moreover, in the suburbs, commuters usually take auto rickshaws instead of the black-and-yellow taxis.

The continuing demand for auto rickshaws in the suburbs is evident from the fact that at the Andheri and Borivali RTOs, a total of more than 1,200 applications for new permits, each costing Rs 15,000, have been received since June 17. In Navi Mumbai and Thane, the number of applications for autorickshaw permits has touched 9,000 in the last two months.

"Taxis were an investment back in the day, which is not the case now. Their numbers have come down substantially," said AL Quadros, president, Mumbai Taximen's Union.

Slumping fleet

In 1997, when the ceiling on permits was implemented, there were 63,200 black-and-yellow taxis in the city.
The figure dropped to 42,000 around four years ago. Now, the fleet has shrunk to 37,000.