As Ola & Uber drivers strike, Jugnoo forays into taxi aggregation business


NEW DELHI: As a crippling strike by drivers of Ola and Uber enters third day, auto rickshaw aggregator, Jugnoo on Sunday said it is entering the taxi aggregation business. The company says its strategy to diversify its offerings and enter into yet another new vertical comes at an apt time, when drivers are looking for an alternate solution to resolve their earnings and incentive issues.

Jugnoo, started as an auto rickshaw aggregator, has expanded into other hyper local segments like food and grocery delivery recently. The company had been contemplating to start the taxi aggregation business and was awaiting the right opportunity to launch the service. Jugnoo is launching this service as a pilot in Gurugram and will soon expand to other cities.

“We at Jugnoo saw a vaccum in the taxi aggregation business. We analysed the issues faced by taxi drivers off late and have come up with a strategy to provide taxi services at prices where drivers do not work at artificially lower rates than their costs. It’s a capitalist world where we have to manage expectations of both the customers and drivers together. At the moment, the existing players have not been able to balance this and therefore, we intend to fill in the gaps,” says Jugnoo, Co-founder and COO, Chinmay Agarwal in a statement

Drivers empanelled with cab aggregators are upset with the decreasing incentives and are demanding the taxi fares to be increased to make running taxis viable. The rates offered by Jugnoo cab services are expected to be higher than current operators.

Launched in November 2014, Jugnoo is a leading auto-rickshaw aggregator and headquartered in Chandigarh.The company is currently rendering its services in 40 cities of India and undertakes 40,000 daily transactions. It has over 12,000 autos empanelled under the brand at present.

Apart from its core business of auto-rickshaw aggregation, the company is also expanding across other verticals of hyper-local logistics in B2B and B2C domains with its recently launched services like Fresh, Meals, Grocery, Menus and Jugnoo Delivery.