CHENNAI: Chennai-based Fast Track Call Cabs, one of the oldest cabs services in the country, is feeling the heat of stiff competition from new-age cab aggregators. In a bid to protect its turf, it’s gearing up to take the fight to the competitor’s strong holds in north India.
The company will raise around $50 million from investors to expand its operations and to take on cab aggregators such as Ola and Uber. “We’ll use the fund to expand our operations in Northern India as well,” M Prabhu, chairman, Fast Track told Express.
Ever since Ola entered in late 2013 and Uber a year later, Chennai’s cab aggregators have been trying their best to regain their lost ground. “Since the entry of foreign aggregators, around 25 companies have vanished in Tamil Nadu alone,” said C Ambigapathy, managing director, Fast Track. However, Fast Track has managed to survive for the last 17 years.
Fast Track has a fleet of 10,000 cabs across Tamil Nadu. Recently, the company has shut its operations in Pune due to lack of funds. “We did not expand the way Ola and Uber did because we did not get external funding. Unlike these companies, we sustained through our internal resources,” said Prabhu. The company is finally considering raising money through investors and is likely to take a final call on the matter soon.
In a bid to ward off competition from these latest entrants, Prabhu said drivers with the cab service need not pay any commission.
This means, the drivers can take home the entire amount for the trip, he added. To portray the contrast, he explained that taxi aggregators charge around 15-20 per cent as commission from drivers.