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Old 7th December 2016, 12:52   #1
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Default Rumour: Reliance to buy all black & yellow taxis of Mumbai

Thank you to the Team-BHP fan (he prefers to remain anonymous) who sent this information in. Heartfelt gratitude for sharing it with other enthusiasts!

Reliance is reportedly planning to buy all black & yellow taxis of Mumbai to mark its entry into the cab business. The company is currently said to be in talks with the taxi union. If the deal does go through, Reliance will likely be operating the taxis as part of a connected radio cab service.

The Indian conglomerate is rumoured to have offered a buying price of Rs. 5 lakh for each taxi. This will include the license rights as well. However, the taxi union is pressing to increase this price to Rs. 7 lakh. As part of the proposal made by Reliance, each driver will be paid Rs. 20,000 per month for a day's shift and will be entitled to a month of paid leave, which the union wants to be increased to 2 months. These are the few points where negotiations are said to be stuck at the moment.

Reliance has been eyeing the cab marketplace for a fairly long time. It was earlier reported that the company will be entering the business as a rival to Ola & Uber, throughout the country. Reports even suggested that Reliance was poaching drivers from other cab aggregators by offering lucrative proposals. It was also reported that the company was planning to use a CNG-only fleet to minimize operational costs. However, Reliance officials have been tight-lipped about this new venture.

Rumour: Reliance to buy all black & yellow taxis of Mumbai-16024803051_93d8b31f75_b.jpg

Link to Team-BHP News

Last edited by GTO : 8th December 2016 at 11:01. Reason: As requested
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Old 7th December 2016, 13:29   #2
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Default Re: Rumour: Reliance to buy all black & yellow taxis of Mumbai

This story has been doing the rounds for a long time now. One version also states that Reliance has already procured brand new vehicles, mainly Toyota Etios cars for this service.

An article which appeared way back in Jan 2016 http://www.moneylife.in/article/reli...rch/44834.html

Another in July 2016 http://tech.economictimes.indiatimes...rvice/47970212

For the record, the Reliance authorities have denied this story.

Time will tell if there is any truth to these rumours, but if it is indeed true, then it will expose how our top conglomerates are so badly starved of new business ideas that they now need to venture into the taxi business.
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Old 7th December 2016, 19:35   #3
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Default Re: Rumour: Reliance to buy all black & yellow taxis of Mumbai

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Originally Posted by dZired View Post

The Indian conglomerate is rumoured to have offered a buying price of Rs. 5 lakh for each taxi.

It was also reported that the company was planning to use a CNG-only fleet
5 lakh each for all those santros, shabby altos and about to die padminis

So will they scrap these ( They already run on CNG ) and start a new fleet?
If yes then its awesome.

Just like OLA/UBER, they should have wide range of taxis in different price points.

From Nano to Ertiga/Innova maybe?
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Old 7th December 2016, 19:58   #4
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Default Re: Rumour: Reliance to buy all black & yellow taxis of Mumbai

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Originally Posted by silverado View Post
5 lakh each for all those santros, shabby altos and about to die padminis

...
You missed the point about "<the price> will include the license rights as well". RTO issues only a limited licenses/permits. So the licenses are possibly worth more than the old vehicles.
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Old 7th December 2016, 22:16   #5
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Default Re: Rumour: Reliance to buy all black & yellow taxis of Mumbai

From the top of my head, considering

1: Reliance has substantial debt which it just about services
2: The newer ventures - Retailing and Jio are currently money pits
3: The current government will not tolerate ventures resulting in non performing assets

It looks unlikely. But again, this is India and Reliance - anything can happen

Last edited by ajmat : 8th December 2016 at 08:45.
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Old 8th December 2016, 03:17   #6
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Default Re: Rumour: Reliance to buy all black & yellow taxis of Mumbai

This one makes absolutely no sense for anybody involved. Reliance would be better off following a similar policy to Ola/Uber and becoming an aggregator and then getting the cab drivers onto their rolls. This is fake news IMO
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Old 8th December 2016, 08:03   #7
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Default Re: Rumour: Reliance to buy all black & yellow taxis of Mumbai

There cannot be any smoke without a hint of fire.. something sure seems to cook along these lines but the media as usual to create sensationalism and grab views has grossly exaggerated the matter.

There're two companies that have their grip firmly over Mumbai, one is Reliance.. the other company is busy biting its own head off but that's a discussion for another day. Today the mantra is louder than ever - acquisitions, collaborations, aggregations, I believe the black & yellow taxis are scurrying around in an unorganized way today, struggling against American tech weapons like Uber.. its time a rich pied piper played his flute yet again.

Personally its bad news.. collaborations mean collective bargaining, collective bargaining means fixed pricing which can go up at any point and that means customers aren't the king, yet again. Remember tech investments/aggregations always mean heavy discounting and promotions at first then they'll start squeezing our wallets when we're not even looking.
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Old 8th December 2016, 11:27   #8
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Default Re: Rumour: Reliance to buy all black & yellow taxis of Mumbai

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Originally Posted by the_skyliner View Post
And 20k per day wages?!
Sorry about the error. It's 20k / month for the day shift (not night shift). Those working the night shift might be paid separately.

Quote:
Originally Posted by pganapathy View Post
This is fake news IMO
The news about these negotiations has come in from a very reliable source.

Remember that the business of black & yellow cabs has gotten royally hammered by Uber & Ola (no one in my family has used a black & yellow in the longest time). They need a 'big daddy with deep pockets' looking after them, and who better than Reliance!

Last edited by GTO : 8th December 2016 at 11:29.
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Old 8th December 2016, 12:52   #9
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Default Re: Rumour: Reliance to buy all black & yellow taxis of Mumbai

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Originally Posted by GTO View Post
The news about these negotiations has come in from a very reliable source.

Remember that the business of black & yellow cabs has gotten royally hammered by Uber & Ola (no one in my family has used a black & yellow in the longest time). They need a 'big daddy with deep pockets' looking after them, and who better than Reliance!
The question then has to be how does this help Reliance. Isn't it easier and for them just to set up an Aggregator and get all the black and yellow into that. The investment is smaller, the end result is the same and they can set up a corpus fund to help out any of the cab drivers who need money to get their vehicles up to scratch or converted to CNG/LPG. Makes a lot more sense than buying a huge number of vehicles at 5L each. Good luck to them if they can pull it off and make it successful
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Old 9th December 2016, 12:38   #10
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Default Re: Rumour: Reliance to buy all black & yellow taxis of Mumbai

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Originally Posted by pganapathy View Post
The question then has to be how does this help Reliance.
They get to own the largest taxi fleet in the commercial capital of India. If they set a good example, cabbies from other cities will welcome them.

The cab-booking business is going to grow, grow & grow! This is Reliance wanting a piece of the action in a rather unconventional way.

Quote:
Isn't it easier and for them just to set up an Aggregator and get all the black and yellow into that
One is ownership of the entire system. Plus, as an aggregator, some may sign up, some won't.

Quote:
Makes a lot more sense than buying a huge number of vehicles at 5L each.
The 5 lakh payment is less for the cab and more for the licence.
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Old 9th December 2016, 12:51   #11
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Default Re: Rumour: Reliance to buy all black & yellow taxis of Mumbai

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Originally Posted by ajmat View Post
1: Reliance has substantial debt which it just about services
Where did you get this information from? I LOLed at 'substantial' and 'just about'. Please look at the latest Annual Report of the company.
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Old 10th December 2016, 12:38   #12
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Default Re: Rumour: Reliance to buy all black & yellow taxis of Mumbai

Heard from a reliable source that a Maruti dealer from Mumbai bagged bulk order for Reliance today.

50 Dzire Tours.

Are the cabbies being bought out just for their badges and drivers?

Quote:
Originally Posted by GTO View Post

One is ownership of the entire system. Plus, as an aggregator, some may sign up, some won't.

The 5 lakh payment is less for the cab and more for the licence.

Last edited by johannskaria : 10th December 2016 at 12:43.
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Old 10th December 2016, 20:08   #13
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Default Re: Rumour: Reliance to buy all black & yellow taxis of Mumbai

Uber Ola Reliance want to add to their fleet but where will they operate as roads are choked.

Reliance with its deep pockets need to think out of the box and try to get into alternate modes of transport such as hyperloop etc. Or in case of Mumbai privatizing the local train and making it better.
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Old 10th December 2016, 20:27   #14
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Default Re: Rumour: Reliance to buy all black & yellow taxis of Mumbai

This is the rumor I was told and I can't verify it. The idea is to push Jio services via these cabs. Jio cell users will get "x" kms a month free initially. There will be free Jio WiFi in the cabs. You will have to pay once you go above that limit via Jio wallet - their Paytm competitor. Their plan is to move every Tom, Dick and Harry to Jio - whatever be the cost.

Last edited by invidious : 10th December 2016 at 20:54. Reason: Grammar
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Old 24th February 2017, 23:08   #15
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Default Re: Rumour: Reliance to buy all black & yellow taxis of Mumbai

Reliance Jio is reportedly launching its own app-based taxi service later this year.. The rumors may have some truth behind them afterall..

http://indiatoday.intoday.in/technol.../1/890855.html
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