Three-Wheeler Aggregator, Jugnoo to Venture into Taxi Aggregation

The renowned Three-Wheeler Aggregator, Jugnoo, is looking forward to expand its business line into Taxi Aggregation

India: Online three-wheeler (Auto rickshaw) aggregator, Jugnoo claimed that the company is looking forward to enter into taxi aggregation business. As per the company, the strategy of venturing into a new vertical is going to take place at an appropriate time, wherein, the drivers of Jugnoo are searching for an alternate solution for issues related to their incentives and earnings.

In addition, Jugnoo has already expanded its business into several other hyper local segments including food & grocery delivery. The company was waiting for the right opportunity to begin its services in cab aggregation business. Jugnoo would launch its service as a pilot in Gurugram and would eventually expand to the 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.   

As per TechSci Research, the company’s new venture into taxi aggregation is anticipated to further increase the competition between the cab aggregator companies across the country and is also anticipated to break the monopoly of leading players in the taxi aggregation business of India. This would gradually enhance the India radio taxi market service in coming years.

According to a recent report published by TechSci Research, “India Radio Taxi Services Market Forecast & Opportunities, 2021”, radio taxi services market in the country is forecast to grow at a CAGR of over 17% during 2016-2021, on account of rising promotional activities by radio taxi operators, and need for enhanced safety and security features. In 2015, aggregator business model dominated India radio taxi services market in the country and several unorganized radio taxi operators are anticipated to join aggregator business model offered by radio taxi service providers over the next five years. Additionally, growth in India radio taxi services market is being supported by leading OEMs such as Hyundai, Tata, Maruti Suzuki, etc. who offer car models specifically for radio taxi.