Taxi aggregators: Don’t get your hopes up
My weekly hot-take on the taxi debate, Vishwajit Rane’s antics, Govind Gaude's imminent sacking and more this weekend
I'm back after a week’s hiatus and I gotta say, I’m overwhelmed by the number of people who responded with concern, wondering whether I was under the weather or something. Thankfully all’s well. That said I could get used to the husko, as we say in Konkani (not that I should get used to).
The last week’s been a busy one and I fear that this edition too might end up stretching a bit. But I will still make space for a commemoration.
This week marks one year since I began this newsletter. It was in the first weekend (or was it the second?) weekend of June last year -- on June 09, 2024 to be precise, when I decided to take the plunge and start a weekly newsletter.
The first edition was quite brief and frankly written in a single sitting, through the night, mainly because I knew I needed to start somewhere and the weekend after the Lok Sabha election results were announced seemed like a good place to start.
It’s been quite a ride since then. There’s been a lot of positive feedback but at the same time, clearly (going by views and interactions) some editions have been better than others. Some I’ve really enjoyed writing while others have felt like quite the task. I’ve made it this far and hopefully will continue onward and upward.
I take it that all of you (at the least the 40% of you who have signed up that open the emails) are enjoying reading the newsletter every week. The best way you can show your love is by sharing (or reposting) it among friends and family, something that goes a long way in helping the newsletter reach far.
With that out of the way let’s look at the week gone by. It’s been a week and then some. From Vishwajit Rane’s antics, to the imminent sacking of Govind Gaude from the cabinet, there are a host of things that could have made it to the ‘headline’ story this weekend.
But instead, I’ll start with the taxi issue.
Taxi aggregators: Don’t get your hopes up
Now, as regular followers of this newsletter will know. This is something I’ve written about before. You can find the piece here. This piece isn’t to repeat the same arguments, but an attempt to go beyond the current debate in the media between those who want aggregators in the state and those opposed to them.
But first, a bit of context to bring everyone up to speed.
How we got here
On May 20 the Goa transport department notified the draft Goa Transport Aggregator Guidelines, 2025, with a view “to regulate aggregators” under the Motor Vehicle Act and called on “persons likely to be affected” to submit any objections within a period of 30 days of the publication of the notification.
Starting Monday, taxi operators from north to south Goa lined up outside the Department of Transport office to submit their objections in writing and the Department of transport set up a special desk on the ground floor to receive them.
They’ve also called on a bunch of MLAs and ministers with a view to seek their support, but things didn’t turn out exactly as planned. And so here we are facing what now appears to be inevitable -- the introduction of global cab aggregators in Goa. We’re talking about Uber, Rápido type aggregators operating in Goa, something that hasn’t happened till date because the government -- until now -- felt that allowing aggregators who operate on a commission basis wouldn’t be ideal for Goa.
The idea back then -- 2017, when the decision to not have global aggregators in Goa was taken -- was that the state would develop its own app, under which the local taxi operators could register and they would have access to a wider market, whilst simultaneously receiving the full fare of the ride.
But as it is with all things government, they promise one thing and do quite another. In this case, we got Goa Miles, a private company, in which a relative of a former Goa BJP MLA was a director (he no longer is), which was quite literally handed a monopoly of Goa’s taxi market on a platter, but still managed to mess it up with a clumsy app, failing to onboard taxi operators in significant numbers and most importantly and failing to serve underserved areas where cabs are typically difficult to get, there by defeating its main purpose. In effect, Goa Miles started eating from the same plate that the taxi operators shared.
This brings us to where we are today.
Turf wars and strikes
Firstly, let’s not call them the mafia. The mafia is a term specifically referring to a criminal organisation following Italian or Sicilian practices. For everything else there’s another English word -- a cartel. You can call them a cartel if you like, which, to me, is a more accurate description of the practices they are accused of being involved in.
Goa’s taxi operators have for long vigorously defended their turf. Earlier the fights used to be between the taxis and the tour bus operators with the taxis blocking the buses, stoning them, etc. Matters even reached the High Court, which had then ruled that each one has the right to choose the mobility option of his choice. Then there were fights between the taxi operators and the government for a bus service to and from the (Dabolim) airport. Remember those days when the taxi operators forced the government to scrap the bus service to the Dabolim airport? It was a really long time ago.
Unfortunately for them they don’t have that kind of leverage anymore. A taxi strike is unlikely to cripple life in Goa like it once did. Neither do the private bus operators. Remember back in the day when a bus strike meant you couldn’t get to school and so, in effect, the school had to declare a holiday? Those were the days. The last statewide taxi strike was in 2019 to demand for the scrapping of Goa Miles, a demand the government didn’t budge on.
There haven’t been any statewide strikes since then. Neither of these two once powerful groups have the ability to hold the state to ransom or the leverage they once had. The reasons are many, perhaps I'll write about it someday.
Secondly, it’s wrong to frame this as a ‘taxi’ problem. Goa isn’t facing a taxi problem. Goa is facing a mobility problem.
It’s not a problem that is limited to the unavailability of cheap and easy to summon taxis at the press of a button. Even if taxis at government approved rates were available at the press of a button, they would still be out of reach for most people who need cheap, convenient and reliable transport on a regular basis.
Sample this. Say you want a ride from Porvorim to Miramar. It’s a distance of about 11-12 kms. At the government approved (average) rate of Rs 36 per kilometre, that ride should set you back by around ₹400. It would only make sense if there’s four of you. By contrast you can get there by bus for Rs 20, the difference being it will probably take you an hour by bus.
The problem with this rate is two fold. The first is that it is too expensive for most people to use on a regular basis and secondly at that rate no one will be willing to even start their car, let alone drop you to your destination. As a matter of fact ₹400 is what a pilot will quote you if you happen to find one at Porvorim seeking to travel to Miramar. If taxis are expensive, then what about pilots and auto rickshaws as compared to metro city rates.
Will an app aggregator solve this problem?
To answer that we will first have to understand the guidelines. Very briefly, here are some of the ‘conditions’ that the aggregator will have to follow, if they are to be eligible for a licence.
Aggregators shall “on-board only [those] driver(s) with a valid PSV badge; Execute a valid enforceable contract with the driver, with jurisdiction for dispute resolution in the state of Goa; Not prevent or disincentivise the driver to on-board with multiple aggregators; Ensure a health insurance for an amount not less than ten lakh Rupees with Financial Year 2025-26 as base year and an increment of 5% each year and in case of female drivers, the health insurance shall be extended to the parents and children of the female driver.
And then there’s this.
“[t]he Aggregator shall guarantee that the Owner receives at least the Fare as prescribed by the Government, for every journey completed by the Passenger; shall not make any deductions whatsoever from the fare receivable by the owner and shall ensure that all the payments to the owner are settled within seventy two hours from the completion of the journey.”
A couple of thoughts. Firstly, notice the use of the term “driver” in the first set of conditions and how that changes to “owner” in the second. So let me get this straight. The aggregator is allowed to onboard drivers but the payouts will go to the owners? Where’s the fare protection afforded to the driver that those defending these guidelines keep tom-toming about?
And will this not incentivise deep pocketed fleet owners to flood the market with cabs under the aggregator platforms and pay the drivers a pittance not unlike the delivery boys operating under various delivery platforms face, while the owners laugh all the way to the bank?
Besides, if the aggregator is going to guarantee at least the notified fare to the “owner” they are going to keep some “convenience fee” for themselves, which would mean for a trip from Porvorim to Miramar you would need to pay more than ₹400. If you're hoping that the entry of aggregators to Goa is going to bring cheap metro-style cabs into the state, you can kiss those dreams goodbye.
No matter how cheap taxi fares become, renting a vehicle will always be cheaper and for locals, using your own vehicle will be cheaper, leaving the taxi operators with a smaller portion of the pie and therefore a higher rate to make up for the fewer number of trips.
So, what’s the way out then?
There is no doubt that Goa is facing a mobility problem. But trust the government to try and “cash in” on the problem rather than trying to find real solutions for it.
As I argued in my piece previously, the government needs to focus on improving public transport in general. We need more buses, along more routes and running reliably at fixed intervals.
The number of buses in Goa has actually reduced rather than increased since the 1990s and no new routes have been added. Essentially our bus system is still stuck in the 20th century.
Besides that, the government can consider introducing an easier way for an average joe to summon a cab. Something like an easy to remember phone number like 108, emergency ambulance service, that leads to a call centre, which can then connect the passenger to the nearest available taxi. This will ease some of the taxi operators’ fears that they will be losing their ‘independence’ to a private entity that they will be ‘working’ under in the case of an app as well as provide the convenience for the customer to have the cab at his doorstep.
Solutions can always be found if you’re serious about solving them. But if you look at every problem as an opportunity to make money on the sly, you will be stuck in a loop not unlike the one we currently are in.
Rane puffs and then huffs
Goa’s health minister Vishwajit Rane is at it again.
He finds himself in a pickle after he erupted in a fit of rage, spewing barely comprehensible utterances, castigating and appeared to order the suspension of a senior doctor at the Casualty Block of the Goa Medical College and Hospital in full public view and in view of a rolling camera.
The video, which was shared with the media, quickly sparked outrage in the state.
Things began when a journalist, belonging to a local Marathi daily (who I happen to know) complained to the minister that his mother-in-law was refused an injection at the GMC casualty department. The injection in question was a simple Vitamin B-12 injection, that, frankly, can be administered by any doctor or nurse, and needn’t be administered at the GMC casualty department -- a place where emergency cases, including road accident cases are brought.
When the journalist approached the Chief Medical Officer of the Casualty Block, he was told to get it done at the primary health centre.
Unprepared to take no for an answer, the journalist first called the Dean of the Medical College and later the minister thus prompting the outburst.
The Federation of All India Medical Associations has threatened an agitation, the Goa Unit of the Indian Medical Association ‘strongly condemned’ the unruly act of the minister while the opposition Congress has downright called him mad.
As the situation threatened to snowball, the minister sought to address the issue directly saying that he accepts that his “tone and words could have been more measured.”
“I’m not above reflection or criticism. I take full responsibility for how I communicated, and I assure you, such an approach will not be repeated,” he said in a statement.
We’ve heard this before. This is not the first time, nor the last that Rane has found himself in a situation where he felt he had to withdraw his words.
The less said about journalists who use connections and proximity to ministers and people in power to get preferential treatment for themselves the better.
Gaude’s wrecking ball
At the start of the week, this issue, it seemed would be the one that would come to dominate headlines for days to come. But as they say: A week is a long time in politics.
Govind Gaude, Goa’s minister for art and Culture, who, quite frankly, has been living on borrowed time for a while now, decided that he would stir the pot.
At a public event on May 25, Gaude alluded to corruption in the processing files of the Tribal Affairs Department.
“In my opinion the administration has weakened today. Contractors take the files of the Tribal Affairs Department to the Shrama Shakti Bhavan (a government block), something is taken from them and then they are asked to submit their files,” Gaude had said.
The Tribal Affairs Department is currently helmed by the Chief Minister. In comments made after Gaude’s utterances, the Chief Minister said that his ministers should behave responsibly and promised that appropriate action would be taken against Gaude.
If this TOI report is to be believed, the state leadership already wants Gaude out, the only reason he hasn’t been sacked yet, is because they are yet to get a green light from the high command.
Gaude’s days are numbered. But more than anything the entire saga has only exposed how powerless the state leadership really is. Even a minister wanted out by the chief minister gets to stay on simply because he can’t do anything without a green light from above. In delaying a decision, the high command has only served to undermine their own chief minister in full public view. They better have a good reason for this.
That’s all I have for you this week. Make sure you comment or write in, should you have something, anything to say.
I would also invite you to contribute via sending in your views, especially on a subject you know something about, and I will be happy to include it as part of the newsletter.
You are also welcome to write in with leads and tip-offs or anything that you think might be interesting enough to include here.
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Until next week, then. Tchau!
In the case of Vishwajit’s antics, the first culprit is the journalist and I think the Marathi daily should suspend him immediately w/o pay for a week for creating such scenes.
Congratulations on completing one year. Best wishes for the time ahead